Ryanair’s O’Leary nears €100m bonus as shares hit record

Stands to earn share options valued at approximately €100m if the company’s shares maintain a price of €21 for 28 consecutive days

Ryanair chief executive Michael O'Leary arriving at Leinster House, Dublin, to appear before the transport committee to address it on Ireland’s national aviation policy. Picture date: Wednesday November 30, 2022.

Ryanair Holdings Plc Chief Executive Officer Michael O’Leary is poised to secure a €100m bonus if the low-cost airline’s shares keep rising, the Financial Times reported.

According to a 2019 bonus plan, O’Leary, 62, stands to earn share options valued at approximately €100m if the Irish company’s shares maintain a price of €21 for 28 consecutive days, the newspaper said. The payout would come in the form of options to purchase 10 million shares at €11.12 each.

The company’s shares, which have gained more than 50% this year, have yet to reach that critical level. They closed at a record weekly high of €18.84 on Friday.

Analysts are optimistic that Ryanair’s shares will continue to rise, though, with an average price target of 24.10 euros over the next 12 months, according to data compiled by Bloomberg. Only one of 17 analysts with estimates compiled by Bloomberg places the 12-month target below 21 euros.

Originally set to expire in 2024, O’Leary’s incentive plan was extended until 2028 in December 2022, according to the FT, when the company’s shares were trading below €13.

Even if the stock doesn’t reach the specified threshold, O’Leary, CEO since 1994, can still get the payout if the budget carrier reports annual profits of €2.2bn after tax. Ryanair said in November that full-year profit will be in a range of €1.85bn to €2.05bn.

The airline has cautioned that a significantly higher fuel bill and delays with deliveries of Boeing Co. aircraft are having adverse effects. The extra fuel costs means that Ryanair is “unlikely” to replicate the performance of last year’s fiscal third quarter, the company said, while visibility into the traditionally weak fourth quarter remains “very limited.”

Bloomberg