Rolls-Royce is set to reward its 42,000 employees worldwide with shares worth approximately £700 each, following a strong financial recovery. The company will distribute 150 shares per worker in September 2024, marking the first time it has given shares to its personnel.
This decision follows Rolls-Royce’s substantial profit of £1.1 billion for the first half of the year, nearly doubling its earnings from the same period in 2023. The initiative is expected to cost the company around £30 million.
According to an internal letter to the company’s staff, seen by the BBC, UK-based employees will face a three-year holding period before they can sell the shares, which will be taxable unless held for five years.
Rolls-Royce currently employs around 21,000 people in the UK.
“Our robust results and ongoing transformation are a direct result of your hard work,” the company stated in the internal memo.
Rolls-Royce, which was severely impacted by the global pandemic and a steep decline in air travel, has been on a recovery path since Tufan Erginbilgic’s appointment as CEO in January 2023. Erginbilgic, who described the company as a “burning platform,” spearheaded a transformation program that included a significant job cut of 2,500 positions at that time.
The head of the company, who will not receive the shares, praised the employees’ role in the turnaround, stating, “These results are thanks to your hard work. It is important that you share in our success. We want to recognize your contribution to our future success and reward you for the role you will play in it.”