O’Leary cold on long-term Ryanair contract
Michael O’Leary has refused to commit himself to leading Ryanair for the long term, but said he has no plans to step down when his contract comes up for renewal next year.
Mr O’Leary’s current five-year chief executive term comes up for renewal next year. Speaking after Ryanair’s agm, yesterday, Mr O’Leary said he has no plans to step down and that the airline’s board is in favour of him staying on for a number of years.
However, he said he would prefer to stay on as chief executive on a rolling 12-month contract, rather than sign a new five-year deal.
“We discussed it at the board meeting yesterday [Wednesday]. I’m very happy to go on a rolling 12-month contract. I own 4% of the company, it’s not like I’m going to go anywhere.
"They want me to sign up to another contract for a period of years. I’m not sure whether I want to sign up for anther five years.
"That would take me to 62. I’m not sure Mrs O’Leary would be very happy if I agreed to sign up to another five years. So, we’ll come to some agreement in the next number of months. It’s not a priority,” he said.
I signed a five-year contract for the first time five years ago to give stability [when former senior executives Michael Cawley and Howard Millar left] because there was a perception among shareholders that all the management was going to disappear.”
However, Mr O’Leary played down any idea that his departure was imminent saying “I’ve no idea when I’ll have had enough. I like this company. I like working for this company. I don’t do it for the pay. But as long as it remains interesting and fun and challenging I see no reason not to continue to try and lead it and lead it forward positively.”
He said Ryanair’s board discusses succession plans annually.
A significant minority of Ryanair shareholders voted against the re-election of chairman David Bonderman, but overwhelmingly rejected calls by trade unions to oppose Mr O’Leary.
The votes were the first chance for investors to give their verdict on a series of strikes and a year of management mis-steps.
After a number of shareholders publicly called for Mr Bonderman to step down, he was re-elected with 70.5% of votes, a significant fall from the 89% he received last year. But they reaffirmed their support for Mr O’Leary, with 98.5% re-electing him to the board, down from 99% last year.
Ryanair has struggled with labour relations in recent months and endured its worst one-day strike last month, disrupting the plans of an estimated 55,000 travellers. Another one-day strike by cabin crew is planned across five countries next week.
Mr O’Leary said he expects Mr Bonderman to still be Ryanair chairman next year:
“I think it’s inevitable in the next number of years... he will decide he’s had enough and will want to hand over to someone else... When he does go, we’ll replace him, inevitably, with someone who doesn’t have his stature and certainly doesn’t have his experience of the airline industry.”
Mr Bonderman has been Ryanair chairman since 1996, taking the role two years after Mr O’Leary became chief executive.
