Oil veteran to lead change at Rolls-Royce
Tufan Erginbilgic will lead a transformation of Rolls-Royce
Rolls-Royce has turned to a 20-year veteran of the oil industry, Tufan Erginbilgic, to help it navigate through a recovery in the aviation sector and the transition to new energy sources.
Mr Erginbilgic will take over as chief executive on 1 January, succeeding Warren East who is retiring after spending his final years in charge keeping the company afloat after the devastating impact of the pandemic.
The new man, who has a background in engineering, has built his career in international business including over two decades with BP, five years as part of its executive team.
He was responsible for BP’s successful petrol station tie-up with Marks & Spencer and in his last role before leaving in 2020, he led BP’s downstream business. This included refining and petrochemicals, as well as the service station network.
He arrives at a time when Rolls-Royce will evolve into a company manufacturing engines for new fuels, such as hydrogen, and develops its modular nuclear reactors.
Erginbilgic was born and educated in Turkey and gained British citizenship in 2009.
He has held several non-executive directorships in heavy industry and manufacturing companies, including at aerospace technology group GKN. He is currently a partner at Global Infrastructure Partners (GIP), a private equity firm which owns Edinburgh Airport.
He will be paid a base salary of £1.25m, 30% of which will be paid as shares deferred for two years. He will also receive two tranches of £3.75m in shares as a “golden hello” to compensate for lost earnings and bonuses from GIP, which will vest in 2027 and 2028 and can be clawed back if needed.
Speaking about selecting Erginbilgic, Rolls-Royce’s Glaswegian chairman Anita Frew stressed the new CEO’s “creation of significant value” during his time in charge of a “complex, multinational” business.
“He is a proven leader of winning teams within complex multinational organisations, with an ability to drive a high-performance culture and deliver results for investors,” she said.
Rolls-Royce shares closed down 4.26p (4.63%) at 88.02p.