Thursday 25 December 2014

O'Leary lands €5k a day – as more Irish fly Ryanair

Gordon Deegan

Published 31/07/2014 | 02:30

Ryanair boss Michael O'Leary
Ryanair boss Michael O'Leary

OUTSPOKEN Ryanair boss Michael O'Leary was paid almost €5,000 a day by the airline last year after receiving a 55pc increase in bonus pay.

New figures show that the colourful 53-year-old chief executive secured an overall 37pc pay increase in the 12 months to the end of March this year resulting in a pay packet of €1.75m or €4,797 a day.

The bonus came as he oversaw the airline achieve revenues topping €5bn, with a slight fall in pre-tax profits to €591.4m, a 9pc drop on the €650.9m in pre-tax profits in the 2013 financial year.

However, Mr O'Leary had overhauled the way Ryanair interacts with its customers, remodelling the airline and its website to a new customer friendly model.

Mr O'Leary also laid the foundation for long-term growth last year to Ryanair carrying 100 million passengers a year by agreeing to purchase 180 new aircraft from Boeing with the first to be delivered by September of this year.

According to the airline's 2014 annual report published yesterday, Mr O'Leary secured the increase in pay through an annual gross salary of €968,425 and topped it up with a bonus of €783,000.

Executive

This compares to a gross salary of €768,000 and bonus of €504,000 paid to O'Leary in 2012-2013.

However, Mr O'Leary's pay is dwarfed by the value of his 3.7pc share in the airline that yesterday had a market value of €355m based on the airline's market capitalisation of €9.59bn.

The remaining directors and executive officers at the airline have a 0.6pc shareholding in the airline with a value of €57m with chairman, David Bonderman holding the vast majority of this owning 0.55pc of shares.

The aggregate pay for Ryanair's nine non executive directors and nine executive officers totalled €7.9m in fiscal 2014 compared to €7.1m in 2012/13 – an increase of 11pc.

The pay for the senior key management and directors represents a 58pc increase on the €5m paid in 2012. The pay last year included share-based compensation expense of €1m.

Ex-Minister for Finance Charlie McCreevy and ex-General Secretary at the Department of Transport, Julie O'Neill both serve on the Ryanair board and received €50,000 last year.

Vice President for PayPal Global Operations Europe Middle East and Africa, Louise Phelan is also a board member and received €50,000.

The accounts show that Ireland is a very important income generator for Ryanair where it generated €532.4m in revenues last year.

The airline's business in Ireland has gone up by 37pc from €387m to €532.4m in two years.

The Irish revenues last year compares to €1.25bn in the UK and €3.2bn in other European countries.

The numbers employed by the airline last year totalled 8,992 made up of 5,573 in cabin crew, 2,665 pilots and the remaining 754 made up of ground operations, maintenance, management and administrative staff.

The annual report shows that 44pc of an average cabin crew member's pay relates to productivity based incentive payment, with 32pc of an average pilot's pay based on productivity based incentives.

The report discloses that the deal with Boeing gives each of the aircraft a basic price of $81m (€60.5m) or $14.4bn (€10.7m) for the 180 aircraft.

However, the report states that discounts secured by Ryanair will result in the actual cost being significantly below the basic price.

The report says the increased revenues from allocated seating will offset the lost revenues from the reduction of certain penalties and airport charges.

Irish Independent

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