RYANAIR HAS AGREED a six-year contract extension for chief executive Michael O’Leary, including a so-called “golden handcuffs” shares-purchase deal.
The Dublin-based carrier said O’Leary’s contract would run until April 2032 and follows “months of discussion with Michael O’Leary and extensive engagement with the group’s largest shareholders”.
Under the terms of the contract, he will be given a one-off purchase option over 10 million shares that will allow him to buy the stock at a price of €26.70 euros per share, which it said was the level before the recent Iran war impact.
The shares option allows O’Leary to buy the stock – and if the share price increases past this level, it would give him an instant profit.
But Ryanair said the shares option would be subject to O’Leary staying with the group until April 2032, as well as “very ambitious” performance targets.
Ryanair said his pay package includes a “modest annual salary and a capped annual bonus” and will be put to shareholders for an advisory vote at the group’s annual general meeting later this year.
Ryanair chairman Stan McCarthy said: “As previously announced, this spring the board commenced discussions with Michael O’Leary on his contract.
“I am pleased to report that this process, which included extensive engagement with Ryanair’s largest shareholders, has successfully concluded with Michael agreeing to extend his leadership of the Ryanair Group for the next six years to April 2032, for the benefit of all shareholders.”
The performance targets mean that O’Leary’s share options will only be granted in full if annual profits after tax grow to over €4 billion or if share price targets are met, including ordinary shares reaching €42 each for 28 consecutive days during the period to 31 March 2032.
“Achievement of these very ambitious targets would create substantial additional value for all Ryanair shareholders,” Ryanair said.
O’Leary has been chief executive of the airline since 1994 and has been on the group’s board since 1988.