Michael O’Leary, the long-serving CEO of European low-cost airline Ryanair, is on the brink of potentially securing a monumental bonus of over Rs 900 crore (approximately $109 million), according to reports. Renowned for his pivotal role in guiding Ryanair’s evolution into an aviation behemoth, O’Leary’s leadership has been instrumental in the airline’s success over the past few decades.
The prospect of the lucrative bonus has been triggered by the recent surge in Ryanair’s stock price, reaching unprecedented highs. As of last week, O’Leary is inching closer to realizing the bonus windfall, valued at Rs 905 crore, as outlined in a groundbreaking bonus agreement signed between the airline and its CEO in 2019.
The terms of the deal stipulate that O’Leary stands to receive 100 million Euros in stock options upon meeting either of two conditions. The first condition necessitates achieving a share price for Ryanair at 21 Euros and sustaining that benchmark for a continuous period of 28 days. Presently, as of Monday morning, the share price for Ryanair is recorded at 18.83 Euros.
The alternative pathway to securing the substantial bonus involves the airline reporting annual post-tax profits amounting to 2.2 billion Euros. As Europe’s most valuable aviation carrier, Ryanair’s financial performance directly correlates with O’Leary’s potential bonus, making it one of the most significant bonuses in corporate history, as reported by the Financial Times.
O’Leary’s existing compensation package includes a stake in Ryanair, constituting 3.9 percent of the airline and valued at 907 million Euros. With the recent elevation of the stock price, the CEO is not only on the verge of unlocking the substantial bonus but is also witnessing a remarkable increase in the value of his existing stake in the airline. The unfolding scenario underscores the financial intricacies and incentives entwined with the success of top executives in the competitive aviation industry.