Ryanair boss Michael O’Leary is set to remain in his role as chief executive for another six years after agreeing a fresh contract with the budget airline including an enormous pay packet that could see him handed 10m additional shares. 

The Dublin-based carrier said the veteran chief executive’s contract will run until April 2032, following “months of discussion with Michael O’Leary and extensive engagement with the group’s largest shareholders”.

The contract states he will be given a one-off purchase option over 10m shares at a stake price of 26.70 euros (£23.13) each, the trading level before the Iran war, if the share price exceeds €42 (£36) for 28 consecutive days. 

O’Leary, whose new contract means he will head up the group into his 70s, is also eligible for the generous pay package if the group’s annual net profit grows to over €4bn (£3.47bn).

If these performance targets are met, O’Leary would be liable for shares worth €153m, although the group says they are “very ambitious.”

The budget airline said the renewed agreement will also include a “modest annual salary and a capped annual bonus” which will be put to shareholders for an advisory vote at the group’s annual general meeting later this year. 

Stan McCarthy, Ryanair chairman, said that he is “pleased to report” that O’Leary has agreed to extending his leadership “for the benefit of all shareholders.”

O’Leary, known for his colourful personality and fiery language, is one of Ireland’s wealthiest businessmen.

He has headed up the airline for more than 30 years in which time he has earned a reputation for courting controversy. Earlier this year he locked horns with Elon Musk, calling X a “cesspit” after the Tesla and SpaceX chief executive branded O’Leary an “idiot” for not installing his Starlink technology on Ryanair planes.

In what was one of the year’s largest corporate spats, Musk also floated buying the airline.

O’Leary is now the carrier’s sixth-largest shareholder, accumulating more than 40m shares worth a combined £1bn, corporate filings show.