Ryanair CEO eyes multi-million euro bonus as share price stays high

Michael O’Leary, nan main executive serviceman (CEO) of Ryanair, is only a fewer days distant from perchance being eligible to person a €100 cardinal bonus, arsenic nan fund airline’s stock value remains astatine a grounds high. 

Ryanair’s stock value needs to enactment astatine €21 aliases higher for a minimum of 28 days successful a row, for O’Leary to person a chance of receiving this payout. On Monday morning, Ryanair’s stock value was €23.8. 

Shares person been trading supra nan €21 level since 2 May, aliases 25 days, arsenic of Monday, which intends that nan minimum 28 days could beryllium fulfilled by nan extremity of nan week. Previously, nan longest Ryanair’s shares person been complete this limit is 5 days, backmost successful March past year.

O’Leary defended nan imaginable bumper bonus, saying, arsenic reported by The Telegraph: “I deliberation we’re delivering exceptional worth for Ryanair shareholders successful an era erstwhile premiership footballers and managers are paid €20m to €25m a year.”

However, location are a fewer much conditions attached to this bonus. According to his existent contract, O’Leary would not beryllium getting this payout until 2028, and will only person it if he is still astatine Ryanair until then. 

This prize clause was first introduced arsenic portion of O’Leary’s compensation backmost successful 2019, earlier being extended successful 2022, erstwhile nan statement was renewed by 5 and a half years. 

The CEO, who has been starring Ryanair since 1994, has been instrumental successful converting nan hose into 1 of Europe’s biggest fund carriers. He is presently 1 of Ireland’s wealthiest businessmen and is worthy astir $1.1 cardinal (€1bn), according to Forbes. 

Why has Ryanair faced truthful overmuch backlash lately?

The fund airline’s stock value surged to a grounds precocious past week, pursuing nan institution signaling a profit of €1.6bn for nan past financial year. A stock repurchase programme worthy €750m was besides revealed astatine nan aforesaid time, which contributed to its higher stock prices too. 

However, nan institution has faced terrible backlash lately owed to nan value of its boarding experience, seats, food, cleanliness and compartment environment.

Ryanair has besides precocious announced that it would beryllium expanding its summons prices by 5% to 6% successful 2025, arsenic little airfares had negatively affected yearly profits, according to nan company.

The hose has been accused of going against a number of user authorities arsenic well, which includes charges for spot selection, larger carry-on bags, and steep fees for printing boarding passes astatine airdrome terminals. This has resulted successful Ryanair, on pinch respective different fund airlines, being fined by Spain recently.  

O’Leary’s imaginable prize has already been frowned upon owed to Ryanair’s ongoing alleged firm governance issues. These see concerns astir nan board’s diversity, independency and transparency, arsenic good arsenic nan handling of nan COVID-19 pandemic and labour issues. 

Barclays analysts person besides highlighted that nan stock buyback announced by Ryanair’s board, which includes O’Leary, could origin stock prices to enactment supra nan required period for longer. 

Euronews has contacted Ryanair for comment.