The man credited with overseeing the growth of Britain’s biggest listed technology company, ARM Holdings, is to take over at the helm of Rolls-Royce.
John Rishton, 57, is to retire as chief executive of Rolls-Royce in July, having held the position since 2011. He will be replaced by Warren East, who was chief executive of ARM between 2001 and 2013 , a period when the company grew into one of world’s leading designers of electronic chips.
East has been a non-executive director of Rolls-Royce since January 2014 and will receive a base salary of £925,000 in his new role, according to a statement this morning. Rishton will retire from the board on 2 July.
“After 14 years as a CEO and CFO I have decided it is time for a change in lifestyle. We have made good progress transforming Rolls-Royce and have a strong team in place,” said Rishton.
“While there is clearly more to do, the company is better placed to face the future. I am sure Warren will lead the business successfully through the next phase and I wish him and everyone at Rolls-Royce well.”
East, who once described himself as a “luddite when it comes to gadgets”, built up ARM into one of Britain’s most successful technology exporters. He will take over at Rolls-Royce almost exactly two years after leaving ARM.
During his tenure there, the Cambridge-based firm went from having a single product line to supplying almost all of the world’s smartphones. He joined the company in 1994.
Rolls-Royce employs more than 54,000 people – 15,000 of which are engineers – across 50 countries.
“I am delighted to be appointed as chief executive of Rolls-Royce. It is well positioned in growth markets, with world class engineering skills and a proud record of innovation and delivery,” East said in a statement.
“I have a strong desire to return to an executive position with the energy and enthusiasm a role like this demands. The markets which Rolls-Royce serves and the technology it deploys are fascinating. This is a wonderful opportunity and I am very much looking forward to leading this remarkable company.”
The chairman of Rolls-Royce, Ian Davis, thanked Rishton, saying he had brought the company through a period of “significant growth and transformation”.
“I am very pleased that Warren East will become the new chief executive of Rolls-Royce following John Rishton’s retirement. Warren has an outstanding record as CEO of ARM Holdings. He is an engineer by training; he has a deep understanding of technology and of developing long-term partnerships. He has proven strategic and leadership skills in a global business and a strong record of value creation,” he said.
