Board shake-up urged by largest Rolls-Royce shareholder

The largest stakeholder in Derby-based Rolls-Royce has called for a boardroom reshuffle.

Californian company Causeway Capital Management, which owns 9% of Rolls, said the manufacturing giant needs “fresh thinking” and should consider selling power systems arm.

The move comes shortly before Anita Frew takes over as a chairman. She will replace Sir Ian Davis at the beginning of October.

Causeway’s porfolio management Jonathan Eng told the Financial Times: ““I really believe the board needs some fresh thinking. The company is facing some challenges; I will be asking [Frew], do we have the right people now that will ask the questions when sticky situations come up because they will come up.”

Any sale of Rolls-Royce’s power systems business, which makes engines for ships and power generation, could net the firm £3.5m.

Eng urged Frew to consider whether the Rolls board had enough expertise to become carbon neutral and tackle fresh engineering challenges.

A Rolls-Royce spokesman said: “We regularly review the effectiveness, composition and skillset of our Board, using independent advice and benchmarking, and engage in robust succession planning to ensure that we have the talent and capabilities required to secure the long-term sustainable success of the company”.