Michael O’Leary set for €100m Ryanair bonus if shares continue to rise

It comes just a few weeks after Mr O’Leary said the airline is unlikely to meet a profitability target by the end of next March that would trigger a high bonus, despite surging growth at the carrier.

According to a 2019 bonus plan, Mr O’Leary (62) stands to earn share options valued at approximately €100m if the Irish company’s shares maintain a price of €21 for 28 consecutive days, the newspaper said.

The pay-out would come in the form of options to purchase 10 million shares at €11.12 each.

Mr O’Leary owns just under 4pc of Ryanair, or 44.1 million shares in the carrier.

The company’s shares, which have gained more than 50pc this year, have yet to reach that critical level. They closed at a record weekly high of €18.84 on Friday.

Analysts are optimistic that Ryanair’s shares will continue to rise, though, with an average price target of €24.10 over the next 12 months, according to data compiled by Bloomberg.

Only one of 17 analysts with estimates compiled by Bloomberg places the 12-month target below €21.

Originally set to expire in 2024, Mr O’Leary’s incentive plan was extended until 2028 in December 2022, according to the FT, when the company’s shares were trading below €13.

Even if the stock doesn’t reach the specified threshold, Mr O’Leary, CEO since 1994, can still get the pay-out if the budget carrier reports annual profits of €2.2bn after tax.

Ryanair said in November that full-year profit will be in a range of €1.85bn to €2.05bn.

Ryanair reported a first-half profit of €2.18bn following a record summer performance. That was 59pc higher than in the previous year.

The airline has cautioned that a significantly higher fuel bill and delays with deliveries of Boeing aircraft are having adverse effects.

The extra fuel costs means that Ryanair is “unlikely” to replicate the performance of last year’s fiscal third quarter, the company said, while visibility into the traditionally weak fourth quarter remains “very limited”.

Ryanair chief financial officer Neil Sorahan recently described the airline group’s balance sheet as being in “phenomenal shape”.