Proactive Investors - Rolls-Royce Holdings PLC (LON:RR) is to hand out £700 worth of shares in the business to employees after its bumper first-half profits.
An internal memo seen by the FT said the engineer would hand out 150 shares to each member of staff, which have to be held for three years until they vest.
Rolls-Royce has around 42,000 staff and 21,000 in the UK, with the scheme costing around £30 million based on yesterday’s share price, which was an all-time high for the business.
It’s the first time Rolls-Royce has gifted shares to employees, which will be handed out in September.
Tufan Erginbilgic, chief executive, has overseen a dramatic turnaround in the aero engine maker’s fortunes since taking over in January 2023 when he warned staff that the business had a last chance to change.
The shares hit their new high Thursday on an upgraded profit forecast and the reinstatement of its dividend for the first time since the pandemic.
“These results have been made possible thanks to your hard work and our collective actions. You are making the difference. It is therefore important that you share in our success," Erginbilgic said in the memo.
"We want to recognise your contribution to our future success and reward you for the role you will play in it."
Erginbilgic will not receive the shares award.
Shares today were down 5% at 456.3p as global stock markets tumbled of worries over the health of the US economy.