Ryanair Holdings' annual report has revealed that the company will decrease the annual pay of its CEO, Michael O'Leary, by 50% to €500,000 and reduce his bonus to a maximum of the same amount.
As reported by The Irish Times, the report revealed that O'Leary was paid €3.73 million during the year that ended on March 31, 2019. This figure included basic pay of €1.058 million, a bonus of €768,000 and share-based payments of €1.547 million.
New Contract
O'Leary agreed to the pay cut and bonus reduction when he began a new five contract on April 1 of this year. The new contract will see him maintain his position as Ryanair's chief executive until July 31, 2024.
The new contract also includes 10 million share options that O'Leary can exercise at €11.12 if Ryanair's net income exceeds €2 billion in any year up to 2024 and/or its share price exceeds €21 for a period of 28 days between April 1, 2021, and March 31, 2024.
According to The Irish Times, Ryanair Holdings' annual report states, "The maximum total cost of the group chief executive officer's remuneration is therefore €2.8 million per annum (including a €1.8 million share-based payments accounting charge) over the five-year term of the group chief executive officer's contract of employment."
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
