The chief executive of European low-cost airline Ryanair (RYAOF) , Michael O’Leary, has in aviation circles earned a reputation for his quick wit and in some cases, short temper.
After getting hit in the face with a pie by environmental activists during a visit to Brussels in 2023, O’Leary wiped the remnants off his face and said how much he “love[s] cream cakes.”
To mess with President Donald Trump over the choice to impose tariffs on Ireland, O’Leary said that Ryanair would cancel its order of Boeing (BA) planes and instead do business with the Chinese government-owned Comac if the offer “was cheap enough.”
The longtime airline CEO also spearheaded Ryanair’s strategy of giving millennials and Gen Z free reign to run the airline’s social media strategy in a way that makes fun of both itself as a budget airline and travelers who do not respect the rules.
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Despite O’Leary’s history of making controversial statements, his long time at the helm speaks to his success as an executive — after shares of the low-cost carrier stayed above €21 ($23.83 USD) for 28 consecutive days, he officially became eligible to purchase 10 million shares worth €110 million ($125 million USD), provided he stays on in the role until March 31, 2028.
This bonus offer was included in the 2022 deal that prolonged O’Leary’s contract as CEO until the end of the 2027-2028 fiscal year.
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In a recent report announcing the 2024-2025 fiscal year earnings, Ryanair reported a profit of €1.61 billion ($1.83 billion USD). This is a drop of approximately 16% from the €1.92 billion profit reported for the previous year.
The decline came, the airline told investors on May 19, primarily due to the higher cost of fuel and delays waiting for deliveries of Boeing aircraft, amid pressure to lower fares and keep up with competitors.
‘It could be better, it could be worse’: O’Leary to investors on latest earnings
“We cautiously expect to recover most, but not all, of last year’s 7% fare decline as we move through the year,” O’Leary told investors. “It could be better than that, it could be worse than that. It depends on what happens in the geopolitical environment as we move through the year.”
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The high bonus was immediately called out by watchdogs and activist groups tracking executive pay.
“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,” UK watchdog High Pay Centre said in a statement.
As Irish news outlets started reporting that O’Leary has reached the stock condition necessary to receive his bonus, Ryanair reluctantly commented on the compensation package by saying share prices was “only one of two conditions,” so the stock options will not vest unless “Michael and the rest of the management team […] remain employed by Ryanair until the end of July 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,” O’Leary said in a separate statement.
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