Rolls-Royce begins search for new chairman

Rolls-Royce is looking for a new chairman – and could look overseas for the first time since it was privatised in 1987.

Sky News reports that the Derby manufacturing giant has begun the search for a figurehead to replace Sir Ian Davis, who has been with the company since 2013.

It is thought that the succession plan is at an early stage and the new chair won’t be announced until “well into next year”.

Rolls told Sky News: “”The chairman will have served nine years in March 2022 and it is best practice that he will stand down by then.

“The board will ensure an orderly transition.”

Rolls-Royce said on Friday (December 11) it is on track to axe 5,500 jobs by the end of this year – 500 more than it expected – as part of a plan to save £1.3bn by the end of 2022.

The Derby manufacturing giant said it will have negative free cash flow of around £4.2bn for the year, resulting in year-end net debt of up to £2bn, and that it is targeting a positive cash flow status by the second half of next year. By 2022, it says, it will look to take that figure to £2.75bn through disposals and organic growth.