Michael O’Leary will remain as chief executive of Ryanair Holdings until 2028 with a four-year extension on a share options deal originally due to end in 2024.

The board of the low cost carrier confirmed ‘following some months of discussions’ with Michael O’Leary and ‘extensive engagement’ with larger shareholders that they have agreed a contract extension which will see the controversial airline executive remain as group CEO until the end of July 2028 – previously July 2024.

It has also agreed to extend the vesting date for 10 million share options granted to O’Leary to 2028, from 2024, provided he remains in the job and the airline reaches set profit and/or share price targets during that time.

The statement added that stretched performance goals including raised post-tax profits targets of up to €2.2bn and/or a share price of €21) …”will considerably reward all shareholders if these ambitious targets are delivered”.  If these targets are not achieved then these share options will lapse and O’Leary will receive nothing other than his basic salary.

Ryanair chairman Stan McCarthy said: “The Board are also pleased that Michael O’Leary has agreed to extend his leadership of the Ryanair Group to July 2028.  During this time Michael will oversee the Group’s growth to 225m passengers p.a. and, with Board support and oversight, develop the Group’s strategy to the end of the decade. ”

The contract extension is subject to the adoption of an amended remuneration policy which will be tabled at Ryanair’s 2023 AGM.