- Rolls-Royce is celebrating its financial resurgence
- It is gifting £700 worth of shares to its staff
- The company was impacted by the Covid-19 pandemic
Rolls-Royce is celebrating its financial resurgence by gifting £700 worth of shares to each of its 42,000 employees worldwide.
The engineering giant announced the windfall following a stellar first-half performance, which saw profits nearly double compared to the same period last year.
This marks the first time in the company’s history that shares have been distributed to its workforce.
The share allocation, set for September, is expected to cost Rolls-Royce approximately £30 million.
While the gesture is seen as a reward for employees’ hard work and contribution to the company’s turnaround, UK-based staff will need to hold onto their shares for at least three years before selling, and five to avoid tax implications.
The share bonus comes as a culmination of a significant transformation journey for Rolls-Royce.
The company, heavily impacted by the Covid-19 pandemic, underwent a major restructuring under CEO Tufan Erginbilgic, who described the company as a “burning platform” in need of urgent change.
As part of this overhaul, the company also announced job cuts affecting 2,500 employees globally.
With the company now firmly on the path to recovery, the share bonus is a tangible demonstration of management’s commitment to sharing the rewards of success with its workforce.
