O'Leary paid €1.1m in 2010 as Ryanair profits grow by 26%

RYANAIR PAID its chief executive Michael O’Leary €1.1 million last year, according to its annual report and 20-F statement, which is lodged with the Securities and Exchange Commission in the United States.

This was almost €200,000 more than Mr O’Leary received in the previous year and reflected a steep increase in his bonus payment for the period.

Mr O’Leary was paid a salary of €595,000 for the 12 months ended March 31st, 2011, unchanged on the previous year. His bonus amounted to €440,000, up from €241,000 in the previous year.

Pension payments brought Mr O’Leary total remuneration to €1.1 million last year. His bonus increase came in a year when Ryanair’s net profit rose by 26 per cent, to €400.7 million.

In his chief executive’s statement, Mr O’Leary said Ryanair’s profit performance last year demonstrated the “strength and robust nature” of its business model.

Ryanair paid its eight board directors and nine “executive officers” total remuneration of €5.2 million last year, compared with €4.5 million in fiscal 2010.

Mr O’Leary is the only executive director at the airline. Its non-executive directors include Kyran McLaughlin of stockbroker Davy and former minister for finance and EU commissioner Charlie McCreevy. Mr McCreevy was paid €40,000 by Ryanair last year.

Ryanair chairman David Bonderman once again waived his fee. In his chairman’s statement, Mr Bonderman described Ryanair’s profit last year as a “robust performance”.

He sounded a note of caution about the airline’s rising fuel costs, which account for 40 per cent of its overall expenses. Mr Bonderman noted that Ryanair’s fuel bill increased by 37 per cent to €1.2 billion last year.

“Next year our fuel bill will rise by over €350 million, even though we are 90 per cent hedged at $82 per barrel,” he added.

Ryanair said its fuel costs would have been €50 million higher last year had it not been for its hedging policies.

Mr Bonderman said the current year would be “challenging as we face rising fuel prices and the continuing impact of recession, austerity measures and falling European confidence”.

He said Ryanair was “well positioned” to cope with these “potential headwinds as slowing growth will enhance yields and our fuel is well hedged, albeit at higher prices”.