Rolls-Royce unveiled plans today to reclaim share bonus payouts from any top executive snared by bribery and corruption allegations.
The proposals come after the Serious Fraud Office launched a probe into the engineer’s dealings in Asia in December. Two “intermediaries” were arrested in February. The group’s annual report says that the new plan will contain provisions to allow share grants to be withdrawn or amended before they vest. It will also be possible to reclaim awards which have vested or their proceeds “in the case of serious non-compliance with the Rolls-Royce code of conduct, reputational damage or gross misconduct”. Former CBI president Dame Helen Alexander chairs its remuneration committee.
Details of the plan emerged alongside a huge rise in the pay package of chief executive John Rishton, who landed £6.22 million in pay and bonuses for 2013 — up from £4.57 million a year before. This year’s award comes just weeks after the firm warned that a decade of profit growth would come to a shuddering halt in 2014.
Rolls-Royce shares are down 19% so far this year.
