Rolls Royce kicks off search for a successor to chairman Ian Davis

In a report on Saturday, Sky News said that Rolls-Royce Holdings plc (LON: RR) had started looking for potential candidates for the role of its next chairman. The aero-engine manufacturer has begun the search reasonably ahead of time and a successor to its current chairman, Ian Davis, is unlikely to be brought onboard in the immediate future.

Rolls Royce opened about 2% up on Monday. Including the price action, its shares are now trading at 120 pence per share that translates to a roughly 45% decline year to date in the stock market. The British company, however, has recovered sharply from a per-share price of 39 pence in the first week of October. The price action should come in handy if you’re interested in investing in the stock market.

Sir Ian Davis joined Rolls Royce as its Chairman in 2013

According to Rolls Royce:

“The chairman will have served nine years in March 2022, and it is best practice that he will stand down by then. The Board will ensure an orderly transition.”

Davis took on the role of the British company’s chairman in 2013. Rolls Royce no longer has a stipulation that its chairman must be a British citizen. In theory, therefore, it could be the first time since 1987 that an overseas veteran could potentially secure the role of the chairman at Rolls Royce.

In September, Rolls Royce said it was exploring options to boost liquidity by £2.5 billion to cushion the economic blow from the ongoing Coronavirus pandemic.

Rolls Royce CFO announced resignation in August

The announcement came only months after the London-based company had revealed that its Chief Financial Officer, Stephen Daintith, had decided to quit and take up a similar position at Hatfield-based, world’s largest dedicated online grocery retailer, Ocado Group plc.

Daintith had joined Rolls Royce in September 2016, and is expected to keep his role for a while to ensure an orderly transition. Chairman Ian Davis said earlier this year in August that the CFO was playing a central role in helping the company navigate through the COVID-19 driven financial challenges and hit its target of £1 billion in cost-savings this year.

Rolls Royce performed fairly downbeat in the stock market last year with an annual decline of a little under 20%. At the time of writing, the British multinational aerospace and defence company is valued at £9.79 billion.