Rolls-Royce to Grant £700 in Shares to Each Employee

Rolls-Royce will award shares valued at approximately £700 each to all 42,000 of its employees globally, marking a significant gesture following the company’s recent revival.

According to an internal memo, the engineering firm will distribute 150 shares per worker. This announcement follows a strong financial performance, with Rolls-Royce reporting £1.1 billion in profits for the first half of the year—nearly double the amount earned in the same period in 2023.

This is the first time Rolls-Royce has given shares to employees, and the distribution will take place in September. The initiative is expected to cost the company around £30 million. UK employees will face a three-year holding period before the shares become taxable, although they can avoid taxation if held for five years.

The company acknowledged the crucial role of its employees in achieving its strong results and ongoing transformation. “Our strong first-half results and progress on our transformation have been made possible thanks to the hard work and action of our people,” said the company in the memo.

Rolls-Royce, which saw its commercial aerospace business heavily impacted by the COVID-19 pandemic, faced significant challenges. Chief Executive Tufan Erginbilgic, who described the company as a “burning platform” upon his appointment in January last year, launched a transformation program aimed at revitalizing the business.

Following significant changes, including a global workforce reduction of 2,500 announced in October to boost efficiency, Rolls-Royce has seen a revival, with its share price hitting an all-time high of 501p on Thursday.

Russ Mould, investment director at AJ Bell, praised the turnaround as one of the most impressive in recent memory, highlighting the company’s remarkable recovery from its previous struggles.