Ryanair chairman holds on but support wanes

Ryanair chairman David Bonderman survived an investor vote on Thursday, though received a slight 'bloody nose' from shareholders.

There had been opposition from a number of shareholders and groups over the reappointment of Bonderman, who has been on the board for 22 years, and Kyran McLaughlin, who has occupied his non-executive director role for 17 years, contrary to the nine years suggested by the UK corporate governance code.

Bonderman received 70.5% of votes in favour of his re-appointment, markedly down from 89.1%, with McLaughlin getting 66.8% support, which was significantly lower than the 99%-plus received for some other directors.

The Local Authority Pension Fund Forum, whose members oversee about £230bn in pension fund assets, recommended that its members vote against Bonderman’s re-election and the Irish airline's annual report and accounts. The results were approved by 98.7% of votes.

Attending the AGM outside Dublin, LAPFF chair Ian Greenwood, said: “It is encouraging that more shareholders have voted against Mr Bonderman this year. Mr Bonderman has been chairman for too long and there are significant doubts about his independence. He has not taken a lead on employee relations or making sure customers have received adequate service during the continuing strikes.

“Ryanair has failed to adequately address concerns about the company’s troubled relationship with its employees and the potential impact on its business. The company’s employment issues highlight long-standing concerns about its governance and in particular Mr Bonderman’s ability and willingness to oversee the board and influence the CEO, Michael O’Leary.”

“We hope Mr Bonderman and the board will heed the message shareholders have sent today and announce plans for him to step down. Ryanair should recruit an independent chairman who will strengthen the board to provide greater oversight and challenge to Mr O’Leary.”

Ahead of the AGM, Aberdeen Standard Investments investment director Alison Kennedy called for Ryanair to set out its succession planning for the two longstanding directors.

She said: "Given the challenges the company faces, for example in union and labour relations, it is clear that governance needs to evolve.

"We expect that there will be clear progress on succession for these two key board positions by the time of the AGM next year. If not, we will vote against the re-election of Mr Bonderman, Mr McLaughlin and the other members of the Nominations Committee."