Rolls-Royce’s biggest investor has urged the engine maker’s new chair to “refresh” the board as the company emerges from the aviation industry’s worst crisis.
Causeway Capital Management, which owns almost 9% of Rolls-Royce, said it would like Anita Frew to consider whether the board had the right expertise.
“I really believe the board needs some fresh thinking,” Jonathan Eng, portfolio manager at Causeway, told the Financial Times. “The company is facing some challenges.”
Eng said the board was “fine for what it was” but that a review was needed. He did not comment on individuals.
Frew is due to become chair of the FTSE 100 group in October. She will oversee the company as it seeks to recover from the Covid-19 crisis, which forced it to raise £7.3bn in 2020, and navigate pressures to reduce its carbon footprint.
Eng told the FT the board needed the right expertise to meet the net-zero challenge and possibly more engineering experience after a series of problems with its Trent 1000 engines.
“I will be asking [Frew]: do we have the right people now that will ask all the questions when sticky situations come up,” Eng said. He added that Rolls-Royce, run by Chief Executive Warren East, should consider the future of its power systems business, which analysts value at more than £3.5bn.
Rolls-Royce shares fell 2.1% to 114.32p at 09:19 BST.