Ryanair Boss Nears Landmark Nine-Figure Bonus
Ryanair’s outspoken chief executive, Michael O’Leary, is on track to qualify for a massive bonus package potentially valued at over €100 million, a payout described as one of the largest potential sums in European corporate history. This significant incentive is tied to a long-term scheme linked to the performance of the budget airline’s shares and O’Leary’s continued leadership.
The potential windfall stems from a share option scheme established in 2019. Under this agreement, O’Leary was granted options to acquire 10 million Ryanair shares at a strike price of €11.12 each. The full value of these options, currently estimated to be around €111.2 million (approximately £93.3 million) based on recent share prices, is contingent upon meeting specific demanding conditions.
Conditions for the Multi-Million Euro Payout
Qualifying for this substantial bonus hinges on two primary conditions:
- Share Price Performance: Ryanair’s share price must close at or above €21 for a consecutive period of 28 days. The airline recently confirmed that this crucial share price target has now been successfully met.
- Continued Employment: Michael O’Leary must remain employed by Ryanair until the end of July 2028.
- https://www.bbc.com/news/articles/cyvmgv25dg4o
- https://finance.yahoo.com/news/ryanair-boss-target-bonus-worth-113553037.html
- https://www.theguardian.com/business/2023/dec/18/ryanair-boss-michael-oleary-heads-for-100m-bonus
- https://www.breakingnews.ie/business/ryanair-boss-michael-oleary-on-track-for-e100m-bonus-1768504.html
- https://www.irishtimes.com/business/2025/05/30/ryanair-boss-michael-oleary-hits-100m-bonus-target/
While the share price target has been achieved, Ryanair has clarified that the share options will not fully ‘vest’ – meaning they cannot be exercised – for another three years, pending O’Leary’s continued service until the 2028 deadline. This means the €100m+ figure is the potential value should he meet the second condition and exercise the options based on share prices around that time. The scheme also had an alternative trigger requiring €2.2 billion in annual post-tax profit, although this target has not yet been met and appears less likely in the near term compared to the share price condition.
O’Leary’s Defence and Legacy
Known for his often provocative remarks, Michael O’Leary has defended the potential bonus, arguing that it represents “exceptional value for Ryanair shareholders.” Speaking earlier this month, he compared the executive compensation to the high earnings in other fields, such as premiership football managers who can earn “€20 to 25 million a year,” suggesting Ryanair’s shareholders gain significant value from the management team’s performance-linked share options.
O’Leary has a deep history with Ryanair, joining in 1988 and taking the helm as chief executive in 1994. He is widely credited with masterminding the airline’s transformation from a small regional carrier into Europe’s dominant low-cost airline, significantly expanding its scale and market share. He currently holds a considerable stake in the company, valued at approximately €930 million, in addition to an annual basic salary of €1.2 million.
With his current contract expiring in 2028, O’Leary has indicated that he could potentially stay on longer, stating that discussions with the board regarding future remuneration would be necessary if they wish him to remain.
Criticism and Industry Context
The prospect of such a large executive payout has drawn criticism from organisations monitoring corporate pay. The High Pay Centre, a think tank focused on executive compensation, argued that “regardless of how successful a business or how effective the company’s leader is, no-one individual’s contribution can ever be great enough to be worth a €100m bonus.” They highlighted the stark contrast between this potential sum and the lifetime earnings of most Ryanair employees, who also play a vital role in the airline’s success.
Large, performance-related bonus schemes are becoming more visible, although sums of this magnitude remain rare in Europe compared to some US counterparts. Notably, rival low-cost carrier Wizz Air has a similar potential deal for its CEO, József Váradi, who could earn £100 million if Wizz Air’s shares hit £120 by 2028. However, Wizz Air has previously acknowledged this target is currently unlikely to be reached given its present share valuation.
Ryanair’s recent strong performance, bolstered by the post-pandemic resurgence in air travel and increased fares, has contributed to its rising share price and prompted the airline to begin making regular payouts to shareholders for the first time.
_Note: A separate recent report mentioned a dispute where Ryanair reportedly requested repayment of salary increases from some Spanish flight attendants following a legal disagreement with their union._
