€100 Million Bonus Has Ryanair CEO Michael O'Leary Soaring - Is it Justified?

Ryanair CEO Michael O’Leary is poised to earn a staggering bonus exceeding €100 million, potentially making it one of the largest pay-outs in European corporate history. This comes as the budget airline’s stock price remained above €21 for 28 consecutive days, fulfilling a critical performance criterion. If he remains with the airline until July 2028, Mr. O’Leary may access 10 million shares, equating to approximately €111.2 million. Despite Ryanair’s recent decline in full-year profits, O’Leary emphasized that the airline continues to deliver exceptional value to shareholders, drawing comparisons between executive pay in aviation and football.

The significant share options awarded to O’Leary are conditional on both the company’s share price maintaining its level and the continued employment of him and other management team members until the salary vesting period is complete. O’Leary, who has led Ryanair since 1994, hinted at potentially extending his tenure beyond 2028—-a decision that will require discussions with the board about future remuneration.

However, the announcement has stirred controversy. The High Pay Centre, a think tank that monitors executive compensation, criticized the proposed bonus, arguing that no individual’s contribution justifies such a disproportionate reward, especially in light of the modest earnings of most Ryanair employees. Comparatively, Wizz Air has set a similar contentious pay structure for its chief executive, showcasing a growing trend of high-elective compensations in the airline sector. In addition, Ryanair has faced operational challenges, recently mandating certain flight attendants in Spain to return salary increases due to a legal dispute with their union. This juxtaposition of executive bonuses and wage disputes underscores ongoing discussions about income inequality in the corporate world.