Rolls to double annual bonuses

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The Independent Online
Rolls-Royce, the aero-engine manufacturer, has decided to double annual bonus payments for top executives because its scheme is no longer competitive with comparable companies.

From this year executive directors will be able to earn annual bonuses equivalent to 40 per cent of their basic salary. The bonus scheme used to pay out a maximum of 20 per cent.

If maximum bonuses are earned this year, Rolls directors could be in line for share payments approaching pounds 800,000. Based on his basic salary last year of pounds 317,000, the company's chairman, Sir Ralph Robins, could receive up to pounds 126,800.

Sir Ralph's total pay last year rose by 18 per cent to pounds 393,000. This included an annual bonus of pounds 49,000, equivalent to 15 per cent of basic pay. Total boardroom pay last year rose 20 per cent to pounds 2.384m.

Rolls' annual report and accounts also discloses that the company is replacing its executive share options scheme with a long-term incentive plan, payable in shares and cash and based on total shareholder return and earnings per share over a rolling three-year period.

Enterprise Oil, meanwhile, has awarded its chairman, Graham Hearne, a 16 per cent salary increase this year to pounds 400,000 even though he has handed over part of his duties to a new chief executive, Pierre Jungels. Mr Hearne's salary will drop to pounds 160,000 in November when he moves into the role of part-time chairman.

Mr Hearne's total pay last year, including a bonus of pounds 122,125, rose 20 per cent to pounds 493,568. Mr Jungels will receive a basic salary of pounds 350,000.