Not everyone is hurting, it looks like Michael O’Leary, the long-time CEO of Ryanair, is in line to receive a huge bonus. If he remains with the airline through July 31, 2028, he’ll be paid more than €100 million. Even for tech companies, this is big news — O’Leary has been with the company since 1988. He has led it since 1994 and is willing to keep his run going past his current contract, which ends in 2028.
As part of Ryanair’s long-term incentive scheme established in 2019, O’Leary will have the option to acquire 10 million shares valued at approximately €111.2 million (£93.3 million), contingent upon the airline’s performance and share price stability. Ryanair’s shares closed above €21 (£17.65) for the 28th straight day on Thursday. This accomplishment fulfills a major performance measure goal and provides a major carrot.
Under O’Leary’s stewardship, Ryanair has evolved from a minor regional airline into Europe’s largest low-cost carrier. His radical approach has had a massive impact on the airline’s culture, through cost structure all the way to shareholder return. His muscular management style hasn’t come without its own controversy. Just earlier this month he ordered the flight attendants in Spain to reimburse their raises. This decision came after HS and their union engaged in a legal battle.
It’s no surprise O’Leary’s comments make headlines, underscoring his brash, no BS business persona. He went on to argue that Ryanair is “delivering extraordinary returns” to shareholders, despite the fact that Ryanair’s full-year profits have been reported as falling. He compares the returns for Ryanair shareholders to those in other sectors, noting, “We’re delivering exceptional value for Ryanair shareholders in an era when premiership footballers or the managers are getting paid 20 to 25 million a year.”
Even amidst the laudatory proclamations of his leadership, some observers have questioned whether it’s appropriate for him to make so much money. The High Pay Centre commented on the matter, stating, “Regardless of how successful a business or how effective the company’s leader is, no-one individual’s contribution can ever be great enough to be worth a €100m bonus.” They pointed out that a large number of Ryanair’s employees would make less than that over their working lives.
O’Leary is looking ahead. He understands that he will have to negotiate his pay with the board if he chooses to remain past 2028.
“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.” – Michael O’Leary