It is not uncommon for chief executives of large companies to receive high salaries and compensation packages, and the new Rolls-Royce chief executive is no exception. According to recent reports, Warren East, the current chief executive of Rolls-Royce, earned a salary of over £1.3 million in 2020, and his successor, Alison Rose, is expected to earn a total of over £6 million in her first year in the role.

This compensation package includes a base salary of £975,000, a cash allowance of £675,000, and a long-term incentive plan worth up to £4.5 million. It is worth noting that the incentive plan is tied to the company's performance, so if Rolls-Royce does not meet its targets, Rose may not receive the full amount.

While these figures may seem high, it is important to consider the size and complexity of a company like Rolls-Royce, which operates in a highly competitive global market and faces significant challenges such as the ongoing impact of the COVID-19 pandemic. Companies must attract and retain top talent to ensure their success and competitiveness, and compensation packages are one way to do so.


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