Board renewal

Rolls-Royce's biggest investor, US investment firm Causeway Capital Management, has backed a board renewal at the British company, emerging from the worst recession in the history of the aviation industry. It was reported by the Financial Times on Monday.

The director of the California-based company, which manages about $47 billion in assets, expressed this view.

He also said he would like the British to consider their prospects for energy systems in the next three years. "In one fell swoop they could become an aerospace and defence company and could solve the balance sheet problem," the company director added.

Rolls-Royce, for its part, said it regularly reviews the board's effectiveness, composition and skill set, using independent advice and benchmarking, and engages in robust succession planning.

Rolls-Royce's difficulties

The crisis situation due to the coronavirus pandemic has led to a sharp drop in production at Rolls-Royce facilities. The company announced the first suspension of its aircraft engine manufacturing facilities in its history as a result of the decline in global airline traffic. In October last year Rolls-Royce reported record losses in the first half of 2020 5.4 billion pounds (over $7.4 billion) before taxes.

The company also plans to cut at least 9,000 jobs globally, more than 15% of its total workforce, to adapt to the new realities of the post-pandemic aviation market and save £1.3bn ($1.8bn) annually.