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Rolls-Royce (LSE: RR., ADR: RYCEY) today announces changes to the board and executive team, adding leaders with a proven track record of success and a strong commitment to creating a high-performing, competitive, resilient and growth This follows CEO Tufan Erginbilgic’s launch on 23 February 2023 of a transformation program that requires a winning culture and shared determination to deliver sustainable earnings growth and cash generation. The changes announced today include the addition to senior management of extensive multinational finance and performance management experience, and the appointment of chairmen with substantial industry experience in both civil aeronautics and defence.
Helen McCabe will join the Rolls-Royce board later this year as Chief Financial Officer, bringing over 25 years of experience in finance and performance management roles within complex multinational engineering organisations. Helen is currently senior vice president of finance for BP’s customer and product division, managing the company’s customer-focused business which posted EBITDA of $13.7 billion last year. Its extensive global operations include lubricants, specialty fuels, bioenergy and electric vehicle charging, along with a global network of more than 20,000 service stations. He is also responsible for BP’s global refining portfolio. Helen has considerable international experience having previously served as CFO of BP Downstream’s Europe and Southern Africa fuels and refining businesses. Prior to that, he spent four years as head of planning and performance management for the downstream division, helping to drive the successful transformation of the business and dramatically improve its financial performance. There are no details to disclose relating to Helen McCabe under paragraph 9.6.13 of the Listing Rules. The exact date on which he will take up his new executive role and role on the Rolls-Royce Board will be announced at a later date.
Tufan Erginbilgic, Chief Executive, said: “I look forward to welcoming Helen to my leadership team. Her track record in promoting rigorous financial discipline and experience in managing performance to achieve dramatic improvements will be invaluable to as we move forward, at pace, to transform Rolls-Royce I have experienced his skills first-hand and his skill set will complement the existing capabilities of the executive team, helping Rolls-Royce realize its significant potential. I would also like to thank Panos for his dedication to Rolls-Royce and his support since my arrival.”
Panos Kakoullis will remain as CFO and board member until at least 31 August 2023 in order to ensure the successful delivery and reporting of the Group’s half-yearly performance.
Anita Frew, Chair, said: “I would also like to extend the entire Board’s thanks to Panos for his hard work. He has been a pleasure to work with over the last 18 months as he has helped us deliver the short-term commitments made to shareholders during the difficult times of the pandemic and to return the business to positive free cash flow. We look forward to Helen joining and working with her and the rest of Tufan’s leadership team as we are transforming Rolls-Royce into a high-quality, sustainable and stronger business for employees, customers and shareholders.”
Rob Watson has been appointed President of Civil Aerospace with immediate effect. He has spent the last five years building our capabilities in electric aviation and during that time has demonstrated his ability to develop new technologies and products within a tight budget framework. In addition, he brings innovative business acumen, along with strong commercial discipline, as well as a proven ability to develop and maintain strong relationships with customers and suppliers. He will help bring fresh perspective and energy to Civil Aerospace as the business focuses on increasing cash, profitability and returns. Rob joined the executive team last year as Chairman of Rolls-Royce Electrical. He has been with Rolls-Royce for 13 years and previously held leadership roles in Defense Aerospace, as well as working as Chief of Staff to the CEO. He has experience in dealing with clients in critical and growing international aviation markets, having been regional director for the Middle East and responsible for Defense clients in Asia Pacific.
As previously announced, Chris Cholerton moves from his role as Chairman of Civil Aerospace to become Group Chairman, having successfully led the Civil Aerospace business through some of the most challenging great in its history. As part of this role, Chris will assume executive responsibility for the Group’s nuclear operations. This includes Rolls-Royce Submarines and the role of interim CEO of Rolls-Royce SMR while a search is carried out for a successor to Tom Samson who, it has been agreed, will leave with immediate effect. Rolls-Royce SMR, which has a nuclear power plant design based on tried and tested technology, is well positioned to succeed in the current selection process being organized by the UK government. As group chairman, Chris will also oversee certain operational activities across the group, including health and safety.
Adam Riddle has been appointed President of Defense and President and CEO of Rolls-Royce North America effective immediately. Adam has spent almost a decade at Defence, and has been instrumental in the division’s recent success in securing key contracts that will deliver multi-year returns. He most recently led its successful global services operations, which account for more than half of Defence’s annual revenue. In his previous role as director of Future Strategy and Programs, he was instrumental in securing the strategically important long-term contracts to reengineer the US Air Force’s B-52 aircraft and provide the propulsion for the V-280 Valor by the US Army’s Future Long-Range Assault Aircraft (FLRAA) program. Prior to Rolls-Royce, Adam worked within Boeing’s defense operations. He is a graduate of the United States Military Academy, West Point, and served as an armor officer in the United States Army.
Tufan Erginbilgic, Chief Executive, added: “I would like to congratulate both Rob and Adam as they take up their new roles. Both are highly experienced leaders and will bring renewed energy and determination to succeed at Civil Aerospace and Defence. The their appointments are also testament to the portfolio of senior talent that exists at Rolls-Royce. With the leadership changes announced today, we are moving at pace and building the momentum we need to transform Rolls-Royce. Together, my team of leadership has a winning mindset, strong strategic alignment and a shared ambition to make Rolls-Royce a company that delivers for all stakeholders.”
This press release was prepared and distributed by Rolls-Royce.
