Ryanair CEO Michael O’Leary could receive a €100m bonus if the airline’s shares continue to rise, according to media reports. But the bonus depends on
- the share price continuing to rise by a steep margin OR
- maintaining a summer level of profit through the winter months.
The bonus is part of a 2019 plan, where O’Leary stands to earn share options if Ryanair’s shares maintain a price of €21 for 28 consecutive days. The Ryanair share price on Euronext closed at €18.45 on Friday, 45 cent up on the previous week.
The payout would be in the form of options to purchase 10m shares at €11.12 each.
O’Leary currently owns just under 4pc of Ryanair, or 44.1m shares in the company.
Ryanair’s shares have not yet reached the required threshold, but analysts are optimistic that they will continue to rise, with an average target price of €24.10 over the next 12 months.
The incentive plan was extended until 2028 in December 2022, even if the stock doesn’t reach the specified threshold.
To receive the bonus, O’Leary can also rely on the airline reporting annual profits of €2.2bn after tax.
Ryanair reported a first-half profit of €2.18bn, a 59pc increase from the previous year.
However, the airline has cautioned about higher fuel costs and delays with Boeing aircraft deliveries affecting performance.
Ryanair’s CFO Neil Sorahan described the airline group’s balance sheet as being in “phenomenal shape.”
Ryanair reported a first-half profit of €2.18bn following a record summer performance. That was 59pc higher than in the previous year.
