Ryanair investors revolt over Michael O’Leary’s £129m pay deal

Budget airline Ryanair has seen more than a third of shareholders vote against pay plans for boss Michael O’Leary that could net him at least 150 million euros (£129 million).

The Dublin-based carrier revealed 39% of investors at its annual general meeting failed to give the plan their backing.

The pay deal looks set to get the green light after receiving a majority of 61% of votes in favour, despite the significant revolt, though Ryanair said it would discuss with shareholders.

A Ryanair spokesperson said: “The company will continue to consult with shareholders in order to understand the reasons behind the result.”

The wider remuneration report received 86% of investor votes in favour.

Ryanair announced in June it had agreed a new contract running through to April 2023, under which Mr O’Leary will be given an option to buy 10 million shares at 26.70 euros (£23.13) each if profits exceed 4.0 billion euros (£3.4 billion) or if its share price goes above 42 euros (£37).

The group said at the time the shares option would be subject to Mr O’Leary staying with the group until April 2032, as well as “very ambitious” performance targets.

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

Mr O’Leary has been chief executive of the airline since 1994 and has been on the group’s board since 1988.

The mammoth pay deal comes as Ryanair faces pressure on its profits from soaring cost pressures, in line with many rivals in the sector.

It said in July that quarterly profits slumped by more than a third to 538 million euros (£462 million) for the three months to the end of June.

Earnings were hit by surging jet fuel prices, as well as a 6% drop in average fares.

This offset 6% growth in passenger numbers to 61.3 million and a 1% rise in overall revenues to 4.38 billion euro (£3.72 billion).