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

Ryanair Holdings Plc Chief Executive Officer Michael O’Leary is poised to secure a €100 million ($109 million) 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 €100 million if the Irish company’s shares maintain a price of 21 euros 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 €2.2 billion after tax. Ryanair said in November that full-year profit will be in a range of €1.85 billion to €2.05 billion.

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.”