Ryanair extends CEO O'Leary's contract to 2032 with possible €150 million bonus
Ryanair CEO Michael O'Leary's Contract Extension Details
By Padraic Halpin
Overview of the New Contract
DUBLIN, June 19 (Reuters) - Ryanair CEO Michael O'Leary has extended his contract to 2032, the budget airline said on Friday, in a deal which includes a bonus scheme that could earn the 65-year-old Irishman more than €150 million ($172 million).
Ryanair said last month that talks to extend O'Leary's tenure to close to 40 years were almost concluded.
O'Leary's Impact on Ryanair
O'Leary has been the dominant force at the airline since taking over as CEO in 1994, transforming it from a small regional carrier to Europe's largest by passenger numbers.
Bonus Scheme and Performance Targets
Subject to O'Leary remaining at the group until April 2032, he would be granted the option of buying 10 million shares at €26.70 per share if annual profit reached €4 billion or if the share price exceeds €42 for 28 successive days.
Recent Financial Performance
Ryanair last month posted a record full-year post-tax profit of €2.26 billion. Its share price stood at €25.70 at 1315 GMT, with the strike price in the agreement representing the prevailing market price before the Middle East conflict.
"Achievement of these very ambitious targets would create substantial additional value for all Ryanair shareholders," the airline said in a statement.
O'Leary's Future and Previous Schemes
O'Leary did not directly answer an analyst when asked last month if this extension would be his last.
A previous share option scheme is set to earn him as much as €100 million after Ryanair hit a share price target in his last contract. O'Leary said the payout would be good value compared to the salaries of football stars.
Remuneration and Shareholder Approval
The airline said O'Leary's remuneration, comprising a "modest annual salary and a capped annual bonus", will be tabled at September's annual general meeting for shareholder approval.
Additional Information
($1 = 0.8725 euros)
(Reporting by Padraic Halpin in Dublin and Prerna Bedi in Bengaluru; Editing by Janane Venkatraman, Susan Fenton and Alexander Smith)
