Rolls-Royce Boss Departs For 'New Lifestyle'

Rolls-Royce has announced its chief executive is to leave the company, just days after signing its record order with Emirates.

The engineering giant said John Rishton had decided to retire in July and he would be succeeded by Warren East, the former boss of chip designer ARM Holdings (LSE: ARM.L - news) .

The news was greeted warmly by investors, with the Rolls-Royce share price rising 4% on opening.

Mr Rishton's departure came after an announcement by Rolls-Royce last week that it had agreed its biggest ever order , with the Dubai-based airline picking up Trent (BSE: TRENT.BO - news) 900 engines for 50 Airbus A380 superjumbos for £6.1bn.

The order was welcome news for Rolls-Royce.

It issued a profit warning in February after confirming its first fall in annual revenues for a decade.

Three months previously, the company had announced plans to cut 2,600 jobs - a result of defence spending cuts, global economic uncertainty and falling commodity prices - especially oil.

Mr Rishton's successor was CEO of ARM Holdings from 2001 to 2013 but has been a non-executive director of Rolls since January.

Chairman of Rolls-Royce, Ian Davis, said: "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.

"I and all my board colleagues would like to thank John Rishton for his commitment and leadership.

"We respect his decision to retire after more than four years of dedicated service. He has led the company during a period of significant growth and transformation.

"During his tenure profits have increased by 69%, the order book has grown by 24% and the share price has risen 63%."

Mr Rishton added: "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.

"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."