Covid-19 pandemic spared no body , Ryanair Group chief executive Michael O’Leary witnessed his annual earnings decrease to €250,000 , that is around 74% less than his previous year's income !
Owing to a €1bn loss during past 12 months that ended on March 2021, the LCC carrier boss did not receive any bonus, which used to be around €458,000 on a previous occasion.
Further report suggests, the Ryanair remuneration committee (Remco) made up of Julie O'Neill, Michael Cawley and Roisin Brennan, did not award a bonus to Mr O’Leary or the airline’s senior management officials for fiscal 2021.
At the peak of the pandemic crisis last year, Mr O’Leary volunteered a 50% cut in his base pay and his maximum bonus was capped at €500,000.
The report states that while Mr O’Leary’s performance throughout the period was “impressive," the 50% of Mr O’Leary’s bonus linked to the airline’s budgeted profit after tax was not achieved as the group recorded a net loss for the year.
The report goes on to state "additionally, as the Group participated in the UK Covid Corporate Financing Facility (CCFF) scheme, Remco did not award a bonus for the achievement of Mr O’Leary’s personal targets in fiscal year 2021. As such, no bonus was awarded to Mr. O’Leary for fiscal year 2021”.
However, Mr O’Leary’s fortune is shining through his 3.9% share of the airline that has rebounded in the past year and has increased by €270m in value as the share price of the airline has recovered.
Mr O’Leary’s Ryanair shareholding had a value of €470m based on a share price of €10.95 in the same month last year. That has now recovered to €16.79 with Mr O’Leary’s shareholding now worth €740m.
Its being stated that , the purpose of this exercise is to ensure that group CEO and senior management remuneration continues to be aligned to the Group's strategy, long term interests and sustainability goals, while promoting retention and succession planning.
The Game Changer High Density 197 seater Cabin of B737 Max 8-200
In his message to shareholders on the business impact of Covid 19, Mr O’Leary states:
“We will emerge from this Covid-19 crisis with a lower cost base, a better business model, and with one of the strongest balance sheets in the industry, which leaves us well-positioned to capture further growth over the next five years.
He later adds: "We expect a substantial return to pre-Covid traffic volumes through the 2nd half of 2021, and we look forward to returning to pre-Covid growth in Summer 2022.”
You may like to read...
