Ryanair CEO Michael O’Leary is on course to receive bonuses exceeding €100 million, potentially making it one of the largest executive payouts in European corporate history.
This follows Ryanair’s shares closing above €21 (£17.65) for 28 consecutive days, hitting a significant performance milestone.
As a result, O’Leary is now eligible for an option to acquire 10 million shares valued at approximately €111.2 million (£93.3 million), provided he remains with the airline through the end of July 2028.
The outspoken Irish executive recently claimed that Ryanair continues to deliver “exceptional value” to shareholders, despite a reported dip in full-year profits.
Ryanair CEO Michael O’Leary is set to secure bonuses worth over €100 million, in what could become one of the largest executive payouts in European corporate history.
The milestone comes after Ryanair’s share price stayed above €21 (£17.65) for 28 consecutive trading days, triggering a key performance condition.
O’Leary now qualifies for an option to purchase 10 million shares, currently valued at around €111.2 million (£93.3 million), on the condition he remains with the airline until the end of July 2028.
Known for his outspoken style, the Irish chief recently stated that Ryanair is delivering “exceptional value” to shareholders, despite a drop in full-year profits.
The long-term incentive plan for Michael O’Leary was introduced in 2019, the year he was appointed group chief executive of Ryanair.
However, the High Pay Centre, a think tank that monitors executive compensation, has criticised the bonus, arguing that “regardless of how successful a business is or how effective its leader may be, no single individual’s contribution can justify a €100 million bonus.”
The group added: “This is particularly true when the vast majority of Ryanair’s employees — who are also vital to the company’s success — are unlikely to earn even a fraction of that amount over the course of their entire careers.”
A similar incentive scheme exists at rival budget airline Wizz Air, where CEO József Váradi could earn up to £100 million if the company’s share price reaches £120 by 2028. However, Wizz Air has acknowledged that this target is currently unlikely, with its shares trading significantly below that threshold.
Meanwhile, earlier this month Ryanair faced controversy in Spain after it ordered some flight attendants to repay recent pay increases following a legal dispute with their union.
The long-term incentive plan for Michael O’Leary was introduced in 2019, the year he was appointed group chief executive of Ryanair.
However, the High Pay Centre, a think tank that monitors executive compensation, has criticised the bonus, arguing that “regardless of how successful a business is or how effective its leader may be, no single individual’s contribution can justify a €100 million bonus.”
The group added: “This is particularly true when the vast majority of Ryanair’s employees — who are also vital to the company’s success — are unlikely to earn even a fraction of that amount over the course of their entire careers.”
A similar incentive scheme exists at rival budget airline Wizz Air, where CEO József Váradi could earn up to £100 million if the company’s share price reaches £120 by 2028. However, Wizz Air has acknowledged that this target is currently unlikely, with its shares trading significantly below that threshold.
Meanwhile, earlier this month Ryanair faced controversy in Spain after it ordered some flight attendants to repay recent pay increases following a legal dispute with their union.
Conclusion
The controversy surrounding Michael O’Leary’s potential €100 million bonus highlights the growing debate over executive compensation in the airline industry. While Ryanair’s strong market performance and leadership are undeniable, critics argue that such vast payouts starkly contrast with the earnings of frontline employees who also contribute significantly to the company’s success. As rival carriers implement similar incentive schemes and labour disputes continue to surface, the issue underscores the need for a broader discussion on fair pay, corporate responsibility, and how success is rewarded across all levels of a business.
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