Warm welcome for Rolls-Royce chief executive
SHARES in engineering company Rolls-Royce jumped by 4.07 per cent yesterday after it announced that chief executive John Rishton is to be replaced by tech veteran Warren East.
Rishton is retiring, with effect from 2 July, after deciding “it is time for a change in lifestyle”.
East, who previously led software company Arm Holdings, has been a non-executive director at Rolls-Royce since January 2014.
Ian Davis, Rolls-Royce chairman, said East had an “outstanding record” at Arm: “He is an engineer by training; he has a deep understanding of technology and of developing long-term partnerships. He has proven strategic and leadership skills in a global business and a strong record of value creation.”
He added that the Rolls-Royce board respected Rishton’s decision to retire.
Analysts welcomed East’s appointment. Lewis Sturdy, dealer at London Capital Group, said that Rolls-Royce’s increased share price yesterday was “a clear sign of dissatisfaction over Rishton while East is a shot in the arm for Britain’s biggest engineer”.
Sturdy added: “East has a good record, having previously run Arm through its meteoric rise in the early 2000s. Shareholders will hope that a man with such strong technological credentials can push the shares back to 2013 highs.”