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Irish Post
2 days ago
- Business
- Irish Post
A week of highs and lows for Ryanair's O'Leary
IT'S been a mixed week for Ryanair and its outspoken CEO Michael O'Leary, who is poised to secure one of the largest payouts in European history, even as the airline deals with setbacks and public criticism. O'Leary is in line to receive a bonus package worth over €100 million, contingent upon two key conditions in a long-term incentive scheme created in 2019. The first, Ryanair's share price remaining above €21 for 28 consecutive trading days, has already happened. The second requires that O'Leary remain CEO until at least 2028. If all runs smoothly, the plan allows O'Leary to purchase 10 million shares at a discounted rate of €11.12, potentially earning a windfall of over €111 million. O'Leary, who has led Ryanair since 1994, has already amassed nearly €930 million in company stock and earns a base salary of €1.2 million annually. The average Ryanair flight crew salary ranges from 1,200 to 1,500 a month. Defending the payout, O'Leary compared it to sports industry salaries, stating during an earnings call, 'In an era where footballers and their managers are earning €20 to €25 million annually, I think we're delivering exceptional value to investors.' However, the sheer scale of it has drawn criticism. The High Pay Centre, a UK-based think tank, argued that no single executive should receive such a disproportionate reward, particularly when most employees will never earn even a tenth of that over their entire lives. The controversy over executive pay comes amid broader debates in Europe about adopting U.S.-style compensation models to keep top talent, with other executives like Wizz Air CEO József Váradi also in line for a potential nine-figure bonus. While O'Leary's bonus raises eyebrows, Ryanair is also under scrutiny for pulling out of Maastricht-Aachen Airport, effective October 26, 2025. The airline cited 'excessive' cost increases and Dutch aviation taxes as reasons behind the withdrawal. Ryanair currently offers routes from Maastricht to popular destinations including Alicante, Barcelona, Bari, Porto, and Zadar. Once it exits, only one other airline, Corendon, will continue operating from the Dutch regional airport. 'This is a direct result of unsustainable cost hikes and the Dutch government's aviation tax, which has jumped by 275% since 2021,' said Ryanair CCO Jason McGuinness, according to the Brussels Times. 'Maastricht has become one of the most expensive airports in Europe.' Airport officials disagreed, claiming that Ryanair's requested fees were significantly lower than those charged at other Dutch airports, and despite months of negotiations, a mutual agreement could not be reached. The airline also faces ongoing criticism over its seating policy, which often separates passengers from their travel companions unless they pay extra. While not a mandatory fee, the practice has prompted anger among travellers, especially those unaware of the system. But then, as O'Leary has pointed out in the past, Ryanair flights are 'full of passengers who have sworn they'll never fly with us again.'. In another setback, a Ryanair flight from Berlin to Lisbon was abruptly cancelled this week after an onboard incident involving a group of unruly passengers. According to The Portugal News, several Portuguese passengers were removed by German police after being disrespectful to a flight attendant. Although the flight was scheduled to depart Berlin at 20:20 local time, the disruption led to its cancellation later that evening. The incident has fuelled further criticism of Ryanair's passenger management and flight disruption protocols. As Ryanair celebrates strong market performance and prepares for a potential record-breaking bonus for O'Leary, it must also deal with a wave of public scrutiny that underscores the challenges of running Europe's largest low-cost airline. See More: Michael O'Leary, Payout, Ryanair
Daily Mail
30-05-2025
- Business
- Daily Mail
Ryanair boss O'Leary poised for €100 MILLION bonus - one of the biggest payouts in European corporate history
Ryanair Chief Executive Michael O'Leary is poised to receive a handsome €100m bonus if he stays at the airline. His mammoth payout offer comes after the low-cost carrier's shares hit a key performance target on Thursday. O'Leary will be given shares worth €111m (£93.5m) if he remains at the airline until the end of July 2028 because the company's share price stayed above €21 for 28 days. The deal, reached in December 2022, was designed to ensure that the 64-year-old stayed on as the boss of the company. The bonus is one of the biggest in European corporate history and would be good value compared to the salaries of football stars, the Irishman told investors earlier this month. 'I think we're delivering exceptional value for Ryanair shareholders in an era when Premiership footballers and managers are getting paid 20-25 million a year,' O'Leary said when asked about the share option on an analyst call. 'I think Ryanair shareholders are getting a particular value out of our share options - both mine and the rest of the management team,' he said added, after the airline reported an annual after-tax profit of 1.6 billion euros. A Ryanair spokesperson earlier this week said the airline was not planning to comment on Thursday's milestone as the options would not vest for another three years. The payment was described as excessive by Luke Hildyard, chief executive of the High Pay Centre, which campaigns against executive pay. Hildyard argued that the pay often far surpasses bosses' worth to companies or their shareholders. In his three decades as chief executive, O'Leary has helped transform Ryanair from a small Irish regional carrier to Europe's largest airline by passenger numbers. He is the airline's eighth-largest shareholder with 44.1 million shares, representing 4.15% of the company. He was granted a significant stake in the 1990s during his early years as chief executive. Ryanair's share price fell as low as 8 euros at the start of the COVID pandemic, just months after the 21 euro target was set. It comes after a restaurant caused a storm online after hosting O'Leary - and adding a few additional charges to his bill. Luvida Restaurant in Navan, Ireland, the for a meal in March. To mock Ryanair's billing style, the restaurant, which serves 'contemporary' foods, added numerous additional charges to O'Leary's bill. The budget-friendly airline is renowned for adding extra charges, including baggage and check-in fees. Considering this, the restaurant piled on supplementary charges, including €7.95 (£6.25) for 'extra leg space', €9.95 (£8.32) for 'priority booth seating' and €19.95 (£16.69) for a 'quiet area reservation'. O'Leary appeared to find humour in the situation and paid the €142.30 (£119.04) bill, which also included the cost of a bottle of Pinot Giorgio, battered prawns, mushroom on toast, and a seabass main. 'Thank you to Michael O'Leary for choosing to dine with us tonight,' the restaurant said on Instagram. It added: 'It was a pleasure to host you. Hope you don't mind us adding some additional charges to your bill for extra leg space, priority booth seating, and quiet area reservation.'
Yahoo
29-05-2025
- Business
- Yahoo
Michael O'Leary to get €111m bonus under deal to keep him at Ryanair
The Ryanair boss, Michael O'Leary, has qualified for a bonus worth more than €100m, putting the airline chief executive on track for one of the largest payouts in European corporate history. O'Leary will be given shares worth €111m (£93.5m) if he stays at the airline until the end of July 2028 because the company's share price stayed above €21 for 28 days. The deal, reached in December 2022, was designed to ensure O'Leary stayed on as chief executive of the Irish budget carrier. The payment was described as excessive by Luke Hildyard, the chief executive of the High Pay Centre who campaigns against executive pay, arguing that it often far outstrips bosses' worth to companies or their shareholders. O'Leary was already a billionaire in euro terms on the basis of his 44m shares in Ryanair, according to the data company S&P Global Market Intelligence. Those shares were worth €1bn on Thursday. Ryanair was valued at more than €25bn. Hildyard sasid: 'Lavishing another €100m on someone who already enjoys billionaire status is a morally questionable and practically inefficient way of sharing the wealth that accrues to large companies. 'The value of a payout this size as a reward or incentive to someone who already possesses more wealth than they could spend in multiple lifetimes is limited. Imagine what difference this award would make if it was shared with all the workers that have all contributed to Ryanair's success.' The company's latest annual report said O'Leary would qualify for the bonus if profits rose above €2.2bn 'and/or the share price of the company exceeds €21 for a period of 28 days between April 1, 2021 and March 31, 2028'. Ryanair's share price first closed above €21 on 2 May and stayed above that level for 28 days, closing at €23.74 on Thursday. O'Leary would be able to buy 10m shares at just €11.12 each, a price of €111.2m. When those shares vest he could then sell them. The airline's share price has more than doubled over the last five years. It fell as low as €8 during the Covid lockdowns that stopped the vast majority of air travel, but has since soared as flight numbers roared back. Ryanair carried a record 200.2m passengers in the 2024-25 financial year, up 9% compared with the previous year. The company has long been an investor favourite among airline stocks because of its ruthless focus on reducing costs, which has allowed it to build the biggest network in Europe. Ryanair was approached for comment.
The Guardian
29-05-2025
- Business
- The Guardian
Michael O'Leary to get €111m bonus under deal to keep him at Ryanair
The Ryanair boss, Michael O'Leary, has qualified for a bonus worth more than €100m, putting the airline chief executive on track for one of the largest payouts in European corporate history. O'Leary will be given shares worth €111m (£93.5m) if he stays at the airline until the end of July 2028 because the company's share price stayed above €21 for 28 days. The deal, reached in December 2022, was designed to ensure O'Leary stayed on as chief executive of the Irish budget carrier. The payment was described as excessive by Luke Hildyard, the chief executive of the High Pay Centre who campaigns against executive pay, arguing that it often far outstrips bosses' worth to companies or their shareholders. O'Leary was already a billionaire in euro terms on the basis of his 44m shares in Ryanair, according to the data company S&P Global Market Intelligence. Those shares were worth €1bn on Thursday. Ryanair was valued at more than €25bn. Hildyard sasid: 'Lavishing another €100m on someone who already enjoys billionaire status is a morally questionable and practically inefficient way of sharing the wealth that accrues to large companies. 'The value of a payout this size as a reward or incentive to someone who already possesses more wealth than they could spend in multiple lifetimes is limited. Imagine what difference this award would make if it was shared with all the workers that have all contributed to Ryanair's success.' The company's latest annual report said O'Leary would qualify for the bonus if profits rose above €2.2bn 'and/or the share price of the company exceeds €21 for a period of 28 days between April 1, 2021 and March 31, 2028'. Ryanair's share price first closed above €21 on 2 May and stayed above that level for 28 days, closing at €23.74 on Thursday. O'Leary would be able to buy 10m shares at just €11.12 each, a price of €111.2m. When those shares vest he could then sell them. The airline's share price has more than doubled over the last five years. It fell as low as €8 during the Covid lockdowns that stopped the vast majority of air travel, but has since soared as flight numbers roared back. Ryanair carried a record 200.2m passengers in the 2024-25 financial year, up 9% compared with the previous year. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The company has long been an investor favourite among airline stocks because of its ruthless focus on reducing costs, which has allowed it to build the biggest network in Europe. Ryanair was approached for comment.
