Shareholders approve Michael O’Leary’s bonus despite revolt
A third of Ryanair shareholders today revolted against a €458,000 (£417,500) bonus for chief executive Michael O’Leary today at the budget carrier’s annual general meeting.
Although the firm’s remuneration report was approved by 65.8 per cent of voters, 34.2 voted against the packages, which had been criticised due to the ongoing financial crisis brought on by the coronavirus pandemic.
Proxy adviser ISS had recommended that investors vote against the package, saying that it was hard to justify given the current downturn.
In August Ryanair flew just 50 per cent of its capacity amid continued disruption, while in the three months to the end of June it fell to a £168m loss.
A combination of the UK government’s quarantine policy and ongoing travel bans are hampering the sector’s recovery.
According to Ryanair’s annual report, O’Leary’s base salary and maximum bonus for the last financial year were both halved to €500,000 due to the pandemic.
In an interview with Sky News last week, O’Leary launched a broadside against ISS after it had made its recommendation.
“I think it’s remarkable given that my bonus was cut in half and I’ve reduced my salary by 75 per cent this year”, he said.
“I know the chief executive of ISS does not even publish his salary or his bonus, so I think these proxy firms should be much more open about what they are paying their chief executives before they criticise chief executives like me who have taken [such] cuts.
“I’m leading the way while these proxy firms hide and cover up what they are paying their chief executives, which is many times more than I’m paid.”
A spokeswoman for ISS said that the company did not disclose its executive pay.
The Ryanair payout comes a week after IAG shareholders voted to approve a £883,000 farewell payment to Willie Walsh, who stepped down as chief executive last week.
ISS had also advised IAG investors to vote against the deal.