LONDON, March 9 Rolls-Royce said it has
cancelled the bonus payments of employees who were forced to
leave the aero-engine maker during an internal investigation
into its bribery scandal.
The company, which reported a record annual loss last month,
agreed a 671 million pound ($818 mln) settlement in January
after lengthy investigations into bribery at the company between
1989 and 2013.
In its annual report, published on Thursday, Rolls-Royce
said its provisions for "clawback" of pay - introduced in 2014
to allow the company to reclaim bonuses from executives caught
up in allegations including bribery or corruption - came after
the "relevant period" of the bribery investigation.
However, it said that employees that left as a result of the
internal investigation would not receive their bonuses.
"In cases where employees have been dismissed or resigned as
a result of Rolls-Royce's own internal investigation, shares and
incentives have been cancelled in full," Rolls-Royce said in its
No current member of the Rolls-Royce board was involved in
the scandal, and Chief Executive Warren East was appointed in
2015 to restructure the company.
The annual report said that East would receive a 2 percent
salary increase, in line with a rise for other employees.
No other executive directors would receive increases and all
salary increases for management have been delayed until
September, it said.
($1 = 0.8204 pounds)
(Reporting by Alistair Smout; Editing by Susan Fenton)