Investors plot to oust Ryanair chairman

RYANAIR faces a shareholder plot to oust its chairman as anger grows over the handling of several high-profile debacles.

A group of pension funds said David Bonderman, who has been in his post for 22 years, needed to go before the end of next year or they would try to force his departure with a vote.

They also called on the no-frills airline to set out plans for chief executive Michael O’Leary’s exit ‘as soon as is practical’.

The warning came as the company continued to be buffeted by criticism over its response to an incident of racist abuse on one of its flights.

Separately, the airline has been beset by pilot strikes over working conditions this summer. The strikes have caused huge disruption and led to hundreds of flights being cancelled – sparking fury among customers.

And in another blow, Ryanair this month reported a sharp drop in profits. In a letter to the company, the Local Authority Pension Fund Forum said Bonderman, 75, ( picturedleft) had bungled the handling of the strikes and headed a board that was not independent enough. The forum represents UK councils with assets of £230bn, with the authorities together controlling about 1pc of Ryanair.

Councillor Ian Greenwood, the forum’s chairman, said: ‘It is our intention to file shareholder resolutions at the next annual general meeting calling for the appointment of a new, independent chair by the end of 2019 and the communication to shareholders of the board’s succession plans for the chief executive as soon as is practical.’

The forum is now seeking to rally other shareholders behind its proposals, which will be put forward next September.

Its resolution is expected to easily gain enough support to be put to a vote, after nearly 30pc of shareholders voted against Bonderman’s re- election a month ago.

Potential allies include Royal London Asset Management, which has said it will continue to vote against Bonderman’s appointment, and Aberdeen Standard Investment, which has raised concerns.

Ryanair has said US billionaire Bonderman will remain in place for between one and two more years. It said it would set out exit plans for O’Leary, 57, within two to three years.

Last night a Ryanair spokesman said: ‘ Ryanair shareholders recently passed all AGM resolutions by a large majority, including the nomination of directors and chairman.

‘They appreciate how fortunate we are to have an outstanding chairman like David Bonderman guide the board and the airline.’