The Ryanair boss, has earlier compared himself to Spanish football manager Pep Guardiola while defending his upcoming €100m plus bonus.
Last time, Ryanair chief Michael O’Leary has said he won’t put up with any “mewling nonsense” over City executives’ hefty pay packets as Premier League managers Pep Guardiola and Jurgen Klopp get £25m a year.
Michael O’Leary is only a few days away from potentially being eligible to receive a €100 million bonus, as the budget airline’s share price remains at a record high.
Ryanair’s share price needs to stay at €21 or higher for a minimum of 28 days in a row, for O’Leary to have a chance of receiving this payout. On Monday morning, Ryanair’s share price was €23.8.
Shares have been trading above the €21 level since 2 May, or 25 days, as of Monday, which means that the minimum 28 days clause have been achieved. Previously, the longest Ryanair’s shares have been over this limit is five days, back in March last year.
Mr O’Leary’s bonus deal compares with that of József Váradi, boss of low-cost rival Wizz Air, who stands to earn £100 million if that airline’s share price hits £120 by 2028.
The proposed bonus was agreed upon in 2019 as part of an incentive scheme that was originally set to expire in 2024 before investors consented in December last year to extend it to 2028.
O'Leary, 64, already has an estimated net worth of $1.1billion due to his 44.1 million shares in Ryanair, equivalent to a 4.15 per cent stake.
O’Leary defended the potential bumper bonus, saying, as reported by The Telegraph:
“I think we’re delivering exceptional value for Ryanair shareholders in an era when premiership footballers and managers are paid €20m to €25m a year.”
The CEO has been with the Carrier since 1994, has been able to transform the airline into one of Europe’s biggest budget carriers. , According to Forbes, he is currently one of Ireland’s wealthiest businessmen and is worth approximately $1.1 billion (€1bn).
The Low cost carrier’s share price surged to a record high last week, following the company recording a profit of €1.6bn for the last financial year. A share repurchase programme worth €750m was also revealed at the same time, which contributed to its higher share prices too.
However, the company has faced severe backlash lately due to the quality of its boarding experience, seats, food, cleanliness and cabin environment.
Ryanair has also recently announced that it would be increasing its ticket prices by 5% to 6% in 2025, as lower airfares had negatively affected yearly profits, according to the company.
The airline has been accused of going against a number of consumer rights as well, which includes charges for seat selection, larger carry-on bags, and steep fees for printing boarding passes at airport terminals. This has resulted in Ryanair, along with several other budget airlines, being fined by Spain recently.
On resumption of flights to Ukraine, in February this year, Ryanair CEO Michael O'Leary said,
"We want to be the first airline back in Ukraine, and we have a plan to launch about 25 routes to and from Kyiv and Lviv within six weeks of the skies reopening."
Its not a Cakewalk either ! O’Leary’s potential bonus has already been frowned upon due to Ryanair’s ongoing alleged corporate governance issues. These include concerns about the board’s diversity, independence and transparency, as well as the handling of the COVID-19 pandemic and labour issues.
Barclays analysts have also highlighted that the share buyback announced by Ryanair’s board, which includes O’Leary, could cause share prices to stay above the required threshold for longer.
Mr O’Leary said that as the options would not vest for another three years, he and the
“rest of the management team have to stay here to 2028 and continue to deliver before we can actually get hold of those share options”.
“So they don’t come around for another three years and a lot can happen between now and then,” he added.
Mr O’Leary also signalled he could stay at the airline when his current contract expired in 2028.
“My contract runs out in 2028 and there’ll have to be some discussion I presume with the board as to how my remuneration will be fixed from 2028 onwards, if they want me to stay on after 2028,” he said.
