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Michael O’Leary, CEO of Ryanair, has qualified for share options valued at over €100 million following the airline’s shares reaching a significant performance milestone. This achievement sets up one of the largest payouts in European corporate history.
Ryanair’s shares closed at €23.74 on Thursday, marking the 28th consecutive day they closed above €21, thus meeting one of the conditions for O’Leary’s compensation package. To acquire these share options, valued at more than €111 million, O’Leary is required to remain with Ryanair until the end of July 2028, under an incentive arrangement established in 2019.
Known for his outspoken approach, O’Leary defended the prospective financial reward earlier this month after Ryanair disclosed a decrease in annual profits. He remarked on delivering remarkable value for Ryanair shareholders, drawing a comparison with premiership footballers or managers earning €20 million to €25 million annually.
O’Leary emphasized that shareholders are benefitting from the share options, both his and those of the management team. He also stated that since the options will not vest for another three years, the team must continue their tenure until 2028 to fully access them.
Additionally, O’Leary hinted at the possibility of staying beyond the expiry of his contract in 2028, indicating that discussions with the board regarding future remuneration would be necessary if they desire his continued leadership post-2028.
O’Leary’s potential pay agreement rivals that of József Váradi, CEO of Wizz Air, who could earn £100 million if the airline’s share price reaches £120 by 2028. However, Wizz Air has conceded that achieving this target appears unlikely, with shares trading significantly below that level.
Bountiful pay packages are more prevalent in the United States, illustrated by GE Aerospace CEO Larry Culp’s $89 million earnings in 2024, classifying him among the highest-paid US executives. Some European companies, like the London Stock Exchange Group, advocate for increased executive compensation.
Since his appointment as Ryanair’s CEO in 1994, O’Leary has significantly contributed to the airline’s rapid expansion, transforming it from a small regional carrier into a prominent entity in global aviation. Ryanair has solidified its dominance in European low-cost aviation, leveraging pandemic-induced disruptions to expand market share as competitors retreated.
O’Leary receives an annual base salary of €1.2 million and holds a stake in Ryanair valued at approximately €930 million. Under the 2019 agreement, he was granted options to purchase 10 million shares at €11.12 each, contingent on either the airline’s share price maintaining above €21 for 28 consecutive days or achieving €2.2 billion in annual post-tax profits by 2028.
Ryanair commented: “If the share price stays above €21 until the close on Thursday, 29 May, the 28-day share price condition will be satisfied. However, this is only one of two conditions for the vesting of the share options.”
Additional reporting was contributed by Patrick Temple-West in New York.
