Michael O’Leary will remain as chief executive of Ryanair Holdings until 2028 with a four-year extension on a share options deal originally due to end in 2024, the airline confirmed on Wednesday.
Mr O’Leary said at the group’s annual shareholders’ meeting in September that he was in talks with the board on staying in charge at the airline until 2028, four years beyond the term of his current deal.
The board confirmed on Wednesday that it has agreed a contract with Mr O’Leary under which he will remain as group chief executive until the end of July 2028.
It has also agreed to extend the vesting date for 10 million share options granted to Mr O’Leary to 2028, from 2024, provided he remains in the job and the airline reaches set profit and/or share price targets during that time.
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Ryanair granted the options to Mr O’Leary at €11.12 – meaning he can cash them in at that price – when he began his current contract in 2019.
The new agreement increases the profit-after-tax target that the airline must reach to trigger a vesting to €2.2 billion in any year up to March 2028, up from the original figure of €2 billion. Alternatively, Mr O’Leary can action the options if the group’s shares hit a price of €21 and stay at that level or above it for 28 days. Ryanair’s stock closed at €12.895 on the Irish Stock Exchange on Wednesday.
“If these targets are not achieved, then these share options will lapse and Michael O’Leary will receive nothing other than his basic salary,” said a statement.
Stan McCarthy, Ryanair Holdings chairman, said the agreement was subject to an amended executive pay policy that the board would table to shareholders at the group’s annual general meeting next September. He noted that the deal involved extensive talks with large shareholders and proxy advisers.
Mr McCarthy said he was pleased that Mr O’Leary had agreed to remain as chief executive to July 2028.
“During this time Michael will oversee the group’s growth to 225 million passengers a year and, with board support and oversight, develop the group’s strategy to the end of the decade,” he added.
Ryanair’s board also announced that it has appointed Anne Nolan, former chairwoman of safety regulator, the Irish Aviation Authority, as an independent director.
She previously served as chief executive of the Irish Pharmaceutical Healthcare Association. Ms Nolan has also been a member of the Food Safety Authority of Ireland and the Irish Medicines Board, and of the executive committee of the European Federation of Pharmaceutical Industries.
Mr McCarthy noted that Ms Nolan brought considerable aviation and regulatory experience to the board.
