Michael O'Leary agrees new deal to stay at Ryanair until 2032

Ryanair announced the CEO's new contract extension comes with a new bonus that could be worth over €150m

Ryanair Holdings' board set a new long-term bonus target for chief executive Michael O’Leary which could be worth over €150m. File picture 

Ryanair Group has announced that its chief executive Michael O’Leary has agreed a new contract extension with the airline which will keep in the top job until 2032 with a new bonus that could be worth over €150m.

In a statement, the board of Ryanair Holdings confirmed that Mr O’Leary has agreed a new contract which will see him remain as Group chief executive until 2032.

“This concludes months of discussion with Mr O’Leary and extensive engagement with the Group’s largest shareholders,” the statement said.

It added that Mr O’Leary’s contract includes a “modest annual salary and a capped annual bonus”, however, should the airline hit certain revenue or share price targets, he will be in line for a significant bonus.

Should Ryanair Group grow its profit after tax to over €4bn or if the price of either Ryanair’s ordinary shares exceeds €42 for 28 consecutive days during the period to March 31, 2032, Mr O’Leary will be given the option to buy 10m shares of the company at a price of €26.70.

This means Mr O’Leary will have to spend €267m for these shares which could be immediately valued at €420m — a €153m increase in value.

“Achievement of these very ambitious targets would create substantial additional value for all Ryanair shareholders,” the statement said.

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Mr O’Leary had a similar provision in his previous contract which said that if the airline’s share price remained above €21 for 28 straight days, he would be entitled to buy 10m shares at price of €11.12 per share. That target was reached last year.

As of Friday, Ryanair shares were trading just under €26 on Euronext Dublin.

Mr O’Leary was appointed chief executive of Ryanair in 1994 and in April 2019 he was appointed the chief executive of the entire Ryanair Group.

In May, Ryanair Holdings plc today reported record full-year profit after tax of €2.26bn, up 40% over its prior-year of €1.61bn.

In its latest financial year, which ended in March, it flew over 208m passengers generating just under €15.5bn in revenue, up 11%.