Michael O’Leary, the chief executive officer (CEO) of Ryanair, 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 could be fulfilled by the end of the week. Previously, the longest Ryanair’s shares have been over this limit is five days, back in March last year.
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.”
However, there are a few more conditions attached to this bonus. According to his current contract, O’Leary would not be getting this payout until 2028, and will only receive it if he is still at Ryanair until then.
This bonus clause was first introduced as part of O’Leary’s compensation back in 2019, before being extended in 2022, when the contract was renewed by five and a half years.
The CEO, who has been leading Ryanair since 1994, has been instrumental in converting the airline into one of Europe’s biggest budget carriers. He is currently one of Ireland’s wealthiest businessmen and is worth approximately $1.1 billion (€1bn), according to Forbes.
Why has Ryanair faced so much backlash lately?
The budget airline’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.
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.
Euronews has contacted Ryanair for comment.
