Michael O'Leary's annual bonus questioned by shareholder advisory group

Ryanair group CEO Michael O'Leary

Ryanair boss Michael O'Leary's proposed €458,000 annual bonus has come under fire, as an influential investor advisory firm urged shareholders to oppose the package in a non-binding vote later this month.

Proxy advisor ISS said the pay award for the financial year ended in March "raises concerns" and was hard to justify amid the unprecedented aviation crisis sparked by Covid-19.

The pandemic is increasing pay scrutiny at companies that have taken government aid or slashed jobs. Criticism of Mr O'Leary's package follows an ISS recommendation against Aer Lingus and British Airways owner IAG's £883,000 (€992,000) send-off for retiring CEO Willie Walsh. IAG's shareholders meeting takes place next week.

While both votes are non-binding, any rejection of pay plans by IAG investors or Ryanair's at its agm on September 17 would be highly embarrassing for either of the companies, which have both used Britain's Covid Corporate Financing Facility.

Ryanair declined to comment. A spokesperson for IAG said Mr Walsh's package had been awarded on the group's 2019 performance and his pay has since been cut by 20% as the Covid crisis unfolded. BA has cut 12,000 jobs and Ryanair has announced 3,000 job cuts.

- Reuters