Ryanair’s (LON: RYA) chairman has come out the other side of the group’s annual general meeting.
Almost 30 percent of shareholders voted against the re-election of David Bonderman, whilst chief executive, Michael O’Leary had the backing of 98.5 percent of investors.
Although the airline’s bosses remain at the helm, investors demanded change after a season of flight cancellations and strikes.
Alison Kennedy, an investment director at Aberdeen Standard Investments, said: “Given the challenges the company faces, for example in union and labour relations, it is clear that governance needs to evolve. Strong, independent and visible board leadership is more important than ever.”
Kennedy continued to say she hoped for “clear progress on succession for these two key board positions by the time of the AGM next year”. If there is no progress “we will vote against the re-election of Mr Bonderman, Mr McLaughlin and the other members of the nominations committee”.
Following the meeting, O’Leary told the press that airline was “making good progress” on reaching an agreement with unions.
However, he also said: “We are not simply going to roll over and concede to every demands the unions make. We will not and cannot concede to unreasonable demands.”
The chief executive also told the press that the Ryanair board wanted to see him continue in his role for a further five years.
“I’m not sure whether I want to sign up to another five years. That would take me up to 62. I’m not sure Mrs O’Leary would be happy,” he said.
The Irish airline successfully agreed on a deal with Irish pilots and cabin over the summer but have yet to agree a deal with cabin crew based in Italy, Portugal, Belgium, Spain and the Netherlands who are planning to strike September 28.
