Ryanair shareholders delivered a significant rebuke to chief executive Michael O'Leary, with 39% of investors voting against a lucrative pay package that could net him at least £130 million. Despite the strong dissent, the pay deal is still expected to be approved due to the 61% of votes cast in favor.
The Irish budget airline stated that it would continue to consult with shareholders to understand the reasons behind the outcome of the vote at its annual meeting. O'Leary's current contract extends to April 2032, and it includes provisions for him to purchase 10 million shares at €26.70 each, contingent upon meeting performance targets and remaining with the company until the contract's expiration.
Ryanair emphasized that achieving these ambitious targets would generate substantial value for all shareholders. O'Leary has held the position of chief executive since 1994 and has been a board member since 1988.
The substantial pay proposal comes at a time when Ryanair, like many of its industry rivals, is facing considerable profit pressure due to escalating costs. In July, the airline reported a more than one-third slump in profits for the quarter ending June, with profits falling to £462 million. This decline was attributed to increased jet fuel prices and a 6% decrease in average fares, which offset a 6% rise in passenger numbers to 61.3 million.