The new share purchase option plan of Ryanair's CEO aims to double its profits in five years

DUBLIN (Reuters) – Ryanair chief executive Michael O'Leary could earn nearly 100 million euros if he doubled the carrier's profitability or share price within five years. part of a new stock option program announced on Friday.

O'Leary said Monday it would stay five more years at the largest European low-cost airline in Europe, which announced a loss of 20 million euros for the third quarter due to lower prices.

Under the new system of options, he will have the opportunity to buy 10 million shares at the current price of 11.12 euros, he increases his annual profit to 2 billion euros. 39; euros compared to a forecast of 1-1.1 billion for the current fiscal year, or if the stock price rises to 21 euros, said the airline.

"The terms of the options will require it to double Ryanair's profitability to 2 billion euros a year and / or increase the price of the stock to 21 euros per share over the next five years. to be able to benefit from all these options, "said Ryanair in a statement. .

If the share price reached 21 euros, O'Leary would make a profit of 9.88 euros on each of the 10 million stock options.

The airline also offered each of its 11 non-executive directors options on more than 50,000 shares on the same terms.

Ryanair shares fell from a record high of € 19.39 in August 2017 due to a combination of staffing problems, strikes, higher fuel costs and increased competition on European routes at short distance. Even though it was in the red for the third quarter, it should still generate a profit for the entire year.

The company's second largest shareholder with 46 million shares, or 4 percent, will become CEO of a new group structure, the company said on Monday.

Under his current contract, he earns "about 1 million euros" a year and is eligible for annual bonuses of up to 100% of his salary, depending on performance, according to the company's annual report.