You just can’t keep Michael O’Leary out of the news. To say it’s been a busy couple of weeks for the long-time Ryanair boss is an understatement.
After ludicrously describing some rival airlines as “high-fare rapists” to reporters at the carrier’s annual general meeting, O’Leary eventually backed down and apologised amid a torrent of criticism.
The agm itself would also have been a chastening experience for many a chief executive. A sizeable amount of shareholders voted against his pay deal struck over the summer and designed to keep O’Leary at the airline, which would see him receive an option to buy 10 million shares, which could net him at least €150 million, if the shares hit a certain level or if the airline’s profits top €4 billion.
At the meeting, Ryanair said that, of the shares cast, some 60.7 per cent voted for the pay package, with 39.3 per cent against. While revolts over executive pay are not unknown, ones of this scale are unusual, especially as Ryanair is hugely profitable. Agm resolutions tend to be carried with 90 per cent or more shares cast in favour of the proposal.
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Usually, after a shareholder backlash like that, company bosses tend to make accommodating comments – something along the lines of how they will take the vote on board, acknowledge shareholder concerns and perhaps offer to meet some investors to discuss the issue in more detail.
Michael O’Leary, though, is no ordinary company boss.
Some investors who objected “didn’t think the targets were aggressive enough”, O’Leary told the Financial Times in an interview published on Wednesday.
“Ah lads, grow up ... these are very ambitious, very aggressive targets, and if they’re delivered, all of you shareholders will almost double your money from where the share price is today,” he said.
Other investors objected because of their “ESG teams who just don’t like big, egregious pay”, he added.
As it happens, Ryanair management will be meeting investors to consult on the pay deal as less than 75 per cent of shares cast favoured the proposal. As the vote was non-binding, though, the arrangement can continue unchanged if the company decides to move ahead with it as is.
Judging by O’Leary’s latest comments, there are unlikely to be many changes to the package.
