Group CEO’s pay fell to €250,000 as the airline recorded a €1bn loss and revenues plunged 80.7pc
The annual pay for Ryanair group chief executive Michael O’Leary has plummeted by 74pc to €250,000 due to the impact of the Covid-19 pandemic on the airline.
Ryanair’s 2021 annual report shows that Mr O’Leary received no bonus in the 12 months to the end of March 2021 as the airline recorded a €1bn loss and revenues plunged 80.7pc from €8.49bn to €1.63bn.
Mr O’Leary’s pay of €250,000 compares with a total remuneration package of €958,000 for the prior year, which was split between basic salary of €500,000 and a bonus of €458,000.
At the outset of the pandemic last year, Mr O’Leary volunteered a 50pc reduction in his base pay to €250,000 and his maximum bonus was capped at €500,000.
According to the report, the Ryanair remuneration committee (Remco), made up of Julie O’Neill, Michael Cawley and Roisin Brennan, did not award a bonus to Mr O’Leary or the airline’s senior management team for 2021.
The report states that while Mr O’Leary’s performance throughout fiscal year 2021 was “impressive”, the 50pc of Mr O’Leary’s bonus linked to the airline’s budgeted profit after tax was not achieved as the group recorded a net loss for the year.
The report goes on to state: “Additionally, as the Group participated in the UK Covid Corporate Financing Facility (CCFF) scheme, Remco did not award a bonus for the achievement of Mr O’Leary’s personal targets in fiscal year 2021. As such, no bonus was awarded to Mr O’Leary for fiscal year 2021.”
Ryanair says it plans to engage remuneration specialists in the second half of fiscal year 2022 to review senior management remuneration arrangements to ensure it continues to be aligned to the group’s strategy, long-term interests and sustainability goals, while promoting retention and succession planning.
Any material change to the remuneration policy will be tabled at the next appropriate AGM, the report said.
The 2021 report shows Mr O’Leary’s share-based compensation totalled €1.78m.
The report states this figure relates to “a non cash accounting charge” for 10 million share options granted under Mr O’Leary’s five-year deal with the airline in February 2019.
Mr O’Leary’s 3.9pc stake in the airline has rebounded in value in the past year, increasing by €270m as the share price of the airline has recovered.
In July of last year, Mr O’Leary’s Ryanair shareholding was worth €470m based on a share price of €10.95, which has now recovered to €16.79, increasing the value of the stake to €740m.
Under Mr O’Leary’s current five-year deal with the airline, the group CEO stands to make €99m from stock options if profits exceed €2bn for any one year or if the Ryanair share price exceeds €21 for a 28-day period before April 2024.
In his message to shareholders on the business impact of Covid-19, Mr O’Leary said: “We will emerge from this Covid-19 crisis with a lower cost base, a better business model, and with one of the strongest balance sheets in the industry, which leaves us well positioned to capture further growth over the next five years.”