Rolls-Royce's CEO, Tufan Erginbilgic, receives a substantial pay increase, despite the company's remarkable recovery from the COVID-19 pandemic's impact on global aviation. The annual bonus entitlement increases from two to three times his base salary of £1.2m, and his long-term incentive award doubles to 750% of salary, making it one of the most generous programs in the FTSE-100. This decision comes after a consultation with major shareholders and top investors, who endorsed the changes. The CEO's overall package is set to reach over £13m, a significant jump from his previous earnings. The company's performance has skyrocketed since his appointment, with shares increasing 12-fold and a market capitalization of £108bn. The annual results are expected to showcase a substantial operating profit and free cash flow, further highlighting the CEO's successful leadership. However, the pay increase is a result of stock awards given when the share price was low, not a direct increase in salary. The remuneration policy review aims to attract and retain top talent, as the company's success has attracted attention from other corporate giants.
