Wednesday 19 June 2019

Aercap chief Kelly gets €40m in shares from incentive scheme

Taking off: Aercap CEO Aengus Kelly said he was confident the business could shrug off collapses in the airline industry
Taking off: Aercap CEO Aengus Kelly said he was confident the business could shrug off collapses in the airline industry
Gavin McLoughlin

Gavin McLoughlin

Aercap chief executive Aengus Kelly got almost $45m (€40m) of Aercap shares last year.

The aviation chief saw 1,074,078 shares in the company “vest” last year, meaning they became his entitlement.

Based on last Friday’s closing price of $40.96, the tranche of shares he got is worth $43.99m. However, the shares are subject to a time restriction on when they can be sold. These so-called lock-up agreements are designed to protect the share price against executives selling a large number of shares at one time.

The award is outlined in Aercap’s latest annual report.

The report says the company grants management, directors and employees shares and share options to “attract and retain them on competitive terms, and to incentivise superior performance with a view to creating long-term value for the benefit of the company, its shareholders and other stakeholders”.

The company posted lower revenues and profits in 2018 than in 2017, according to results published last month, with falls in “basic lease rents” as well as “maintenance rents and other receipts”.

Mr Kelly told analysts he was confident the business could shrug off collapses in the airline industry. “We’ve experienced airline credit events every year for the last 13 years. But for every year, for the last 13 years, AerCap has generated very healthy steady profits,” he said.

Irish Independent

Also in Business