Ryanair’s rising share price means Michael O’Leary is likely to bag a €100 million bonus sooner rather than later. In 2019, Ryanair agreed a deal with O’Leary granting him approximately €100 million in share options should shares exceed €21 for 28 consecutive days, or if the firm reported annual post-tax profits of €2.2 billion.
The latter isn’t likely just yet, with Ryanair forecasting full-year profits this year of between €1.85 billion and €1.95 billion. However, with shares hitting €21, O’Leary’s bonus is likely to be a question of when, not if.
Does he deserve it?
“The obvious question is, well, is anybody worth €100 million over five years?” O’Leary said in a Wall Street Journal interview last week. “If premiership footballers are earning f**king €20 million a year and [French foootball star Kylian] Mbappé is being paid €130 million to go play football for f**king Real Madrid, then I think my contract is very good value for Ryanair shareholders.”
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Football clubs pay big money to keep stars from joining rivals but there’s never been a question about whether O’Leary might leave Ryanair. Already worth more than €900 million, he’s not likely to retire any time soon. “I can’t lie on a bloody beach and read,” he said recently, saying he’d “much prefer to be working”.
Nevertheless, even detractors must admit that over the last 30 years, O’Leary has transformed Ryanair from a loss-making minnow to the world’s most valuable airline.
And even now, shares look inexpensive. Bank of America recently increased their price target to €28, noting Ryanair trades on just nine times estimated 2025 earnings, well below its historical average (13). Given the circumstances, contented shareholders won’t quibble about O’Leary’s €100 million bonus.
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