Ryanair chief ‘to stay’ but turbulent AGM expected
MICHAEL O’Leary is expected to stay at the helm at Ryanair despite multiple calls for shareholders to oust him at the airline’s annual general meeting today.
Motions to re-elect the Ryanair’s chief executive and chairman David Bonderman may lead to clashes at what is likely to be a turbulent gathering.
But a board member has been quoted by Reuters as claiming Mr O’Leary will continue at the company’s top for at least another five years.
Advisory group PIRC is opposing Mr O’Leary’s re-election, while numerous investors and public pension funds have said they plan to vote against US billionaire Bonderman following months of strikes.
They include advisory firms PIRC, ISS and Glass Lewis. However, it is reported that Mr O’Leary expects his chairman to be re-elected with a huge majority, although he admitted he needs to improve his own performance.
Major pilot unions also urged shareholders to replace Mr O’Leary and Mr Bonderman ahead of the meeting.
The British Airline Pilots Association (BALPA), which represents pilots at the airline’s largest base in the UK, urged shareholders to immediately unseat them. It said it was concerned that the “approach epitomised under Michael O’Leary’s leadership over more than 20 years is unchanged” despite the airline’s decision to recognise unions.
“As professional pilots, critical to the future and fortunes of our airline, many have lost all confidence in Michael O’Leary and his ability to lead the company as CEO,” said the statement.
“Accordingly, as stakeholders in Ryanair, with shared interest in the health and success of the company, Ryanair’s pilots urge shareholders to immediately replace the CEO Michael O’Leary and chairman David Bonderman at the annual general meeting.”
BALPA general secretary Brian Strutton said industrial unrest among pilots and cabin crew was likely to continue for the foreseeable future.
“For many pilots and cabin crew it seems to me that they do not believe in the inten- tions of Ryanair’s leaders and unfortunately Mr O’Leary is usually cited as the cause of this. I think that while he is still there as the embodiment of Ryanair’s values the distrust among many staff is likely to continue and with it the industrial unrest,” he said.
The European Cockpit Association also called for a change in the management team.
Today’s AGM comes as the airline has been threatened with the biggest strike in its history next week. Unions in Belgium, Italy, the Netherlands, Portugal and Spain are staging a 24-hour walkout on Friday week. It is understood they plan to strike once a month until their demands are met.
However, Ryanair has hit back at claims that the industrial action will cause chaos and said it expected most cabin crew to work as normal, as they did during previous strikes.