Ryanair slashes CEO’s salary in half as profits fall

Ryanair Holdings, the parent group of Ryanair (FR/RYR), is to cut Chief Executive Officer Micheal O’Leary’s salary in half according to the airline’s annual report.

The outspoken CEO was paid a basic salary of just over €1m in 2018 as well as a bonus of nearly €800,000.

The airline is now facing tough financial times following delays with the delivery of its new aircraft, the 737-8200, lower fares and rising fuel prices.

Quarter 1 profits for 2019 were down 21% compared to the same period last year despite traffic being up 11%.

As a result, Mr O’Leary has agreed to a new 5-year contract that will see his basic salary cut by 50% to €500,000 and a 50% cut to his maximum bonus to €500,000 a year.

Ryanair Boeing 737-800
Ryanair Boeing 737-800

It isn’t all bad news for Mr O’Leary though. The contract also includes 10 million share options which can be cashed in at €11.12 per share if Ryanair’s net income exceeds €2 billion in any year up to 2024. A potential windfall in excess of €111m

This is on top of the 44 million shares Mr O’Leary already owns which are worth around €414m

About Nick Harding 818 Articles
Nick is the senior reporter and editor at UK Aviation News as well as working freelance elsewhere. He has his finger firmly on the pulse on Aviation, not only in the UK but worldwide. Nick has been asked to speak in a professional capacity on LBC, Heart and other broadcast networks.