Ryanair group chief executive Michael O’Leary has extended his contract to 2032, the airline said today, in a deal which includes a bonus scheme that could earn the 65-year-old more than €150m.
Ryanair said last month that talks to extend Micheal O’Leary’s tenure to close to 40 years were almost concluded.
Mr O’Leary has been the dominant force at the airline since taking over as CEO in 1994, transforming it from a small regional carrier to Europe’s largest by passenger numbers.
Subject to Michael O’Leary remaining at the group until April 2032, he would be granted the option of buying 10 million shares at €26.70 per share if annual profit reached €4 billion or if the share price exceeds €42 for 28 successive days.
Ryanair last month posted a record full-year post-tax profit of €2.26 billion. Its share price stood at €25.70 this afternoon, with the strike price in the agreement representing the prevailing market price before the Middle East conflict.
“Achievement of these very ambitious targets would create substantial additional value for all Ryanair shareholders,” the airline said in a statement.
Michael O’Leary did not directly answer an analyst when asked last month if this extension would be his last.
A previous share option scheme is set to earn him as much as €100m after Ryanair hit a share price target in his last contract. Mr O’Leary said the payout would be good value compared to the salaries of football stars.
The airline said the CEO’s remuneration, comprising a “modest annual salary and a capped annual bonus”, will be tabled at September’s annual general meeting for shareholder approval.
“As previously announced, this spring the board commenced discussions with Michael O’Leary on his contract,” Ryanair chairman Stan McCarthy said.
“I am pleased to report that this process, which included extensive engagement with Ryanair’s largest shareholders, has successfully concluded with Michael agreeing to extend his leadership of the Ryanair Group for the next six years to April 2032, for the benefit of all shareholders,” Mr McCarthy added.
