East takes over from Rishton as Rolls-Royce CEO
In a bid to revitalise their dwindling fortunes, prominent manufacturing brand, Rolls-Royce has announced the appointment of savvy technology executive, Warren East, as its new Chief Executive Officer.
Mr East, the former Arm Holdings chief, will replace John Rishton, as head of the UK-based company. Mr Rishton had earlier stunned investors yesterday after announcing that he would step down later this year, specifically July, after he had been reassured only last week by the company’s win of a $9bnm passenger jet engine order, the largest in its history.
The new CEO will have his hands full upon assumption of office with loads of responsibilities, the most important being how he would strategize in reviving and revitalising the 109- year old company which is a symbol of British manufacturing prowess but has seen its fortunes plunge down in recent times.
Rolls-Royce had a difficult 2014 as its share price fell to 32 per cent coupled with a series of profit warnings and investigations into alleged bribery and corruption which has cast a shadow over Mr Rishton’s record in office and the overall fortunes of the company as a result of the strategies employed.
Another dilemma the new Chief Executive would quickly have to sort out is whether Rolls-Royce should continue in the direction of the outgoing CEO by expanding the business to the marine and power systems sector or just remain principally in its aerospace and defence business.
Mr Rishton, 57, who became chief executive in 2011, said he had decided to retire “to have a little rest and spend more time with my family.” He is understood to have told the board late last year of his intentions; around the time he announced a wide-ranging restructuring that will involve 2,600 job cuts.
Under Mr Rishton’s leadership, Rolls-Royce declared that group profits had increased to 69 per cent since 2011, on sales up just over a third.
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