Ryanair's CEO, Michael O'Leary, initiated a €111 million bonus reward distribution.
Ryanair's CEO Michael O'Leary approaches one of Europe's largest corporate payouts following the airline's achievement of its share price target.
O'Leary stands to secure a €100 million bonus due to Ryanair's share price consistently exceeding €21 for 28 consecutive days. This bonus structure enables him to acquire 10 million shares at €11.12 each, equating to approximately €111 million.
Given Ryanair's current share closing price of €23.74 on May 29, 2025, O'Leary would generate a paper profit of around €126 million.
Initially agreed upon in 2019, the proposed bonus formed part of an incentive scheme set to expire in 2024. After investor consent in December 2023, the timeline was extended to 2028. O'Leary is contracted to remain with Ryanair until July 2028, ensuring his eligibility for this payout.
O'Leary, who is already estimated to possess an impressive net worth of $1.1 billion due to his 44.1 million shares in Ryanair, emphasized the value delivered to shareholders when commenting on the bonus.
Over his tenure, Ryanair's revenue has increased considerably, reaching €13.95 billion in the 2024-2025 fiscal year. Despite this growth, profits dropped by 16 percent to €1.6 billion as a result of price cuts and heightened competition.
Ryanair anticipates its total traffic to expand by only 3 percent to 206 million in the current fiscal year, expressed concerns about insufficient aircraft availability ahead of the peak summer season.
In the preceding year, Ryanair reported a record 200 million passengers, a 9 percent annual increase, despite challenges related to delayed Boeing aircraft deliveries following a strike in Washington State.
With operations across more than 230 airports in 37 European countries since 1988, Ryanair consistently fosters growth through offering affordable fares, maintaining low costs, and prioritizing secondary airports in its route expansion.
Ryanair has faced criticism for its strict baggage policies and questionable customer service, as well as controversial advertising. In 2021, its 'Jab and Go' campaign was banned by the UK's Advertising Standards Authority.
Like the rest of the aviation sector, Ryanair was significantly impacted by pandemic-related travel restrictions. Although it reported a €1 billion profit in 2020, it experienced a steep loss the following year, posting a €815 million loss as passenger numbers dropped drastically. However, Ryanair has since experienced a considerable rebound in trade, recording over €10 billion in revenue and a €1.3 billion profit in 2023.
Recent positive developments include a massive €40 billion deal to acquire 300 Boeing 737-MAX-10 aircraft, marking an ambitious plan to double annual passenger numbers to 300 million by 2034. O'Leary expressed optimism about the growth potential of the European market, stating, "I think the thesis that there's no more growth in Europe, [and that] Europe is completely tapped out, is wrong."
[1]Source: The Irish Times, 'Ryanair launches €40bn plan to double passenger numbers to 300m'[2]Source: Guardian, 'Ryanair boss Michael O’Leary in line for £84m bonus'[3]Source: CNBC, 'Ryanair's Michael O'Leary aiming for €100 million bonus'
O'Leary's acquisition of 10 million shares, priced at €11.12 each, is a result of his successful investment strategy in Ryanair's business, which underlies the growth observed in the airline's finance sector.
The bonus structure, initiated in 2019, demonstrates the value that investing in Ryanair's business can generate, as evidenced by O'Leary's potential paper profit of around €126 million.
