Ryanair - Concerns over voting rights under hard Brexit Scenario


Ashley Hamilton Claxton, Head of Responsible Investment

19 September 2018

As UK based shareholders, we are vehemently against the proposal the company has put forward to take away our voting rights under a hard Brexit scenario. One share, one vote is a fundamental pillar of good governance that companies should uphold.
We are also concerned with Ryanair’s corporate governance and poor stakeholder management, which could have an impact on the long term future of the company. We have had long-standing issues with the independence of Ryanair’s board and with the extent to which the board can provide effective challenge to management decisions. The recent labour unrest, operational issues, and the decision to take away our voting rights under a hard Brexit scenario has crystallised our concerns. 
While we recognise that Ryanair has taken some steps towards improving the level of independence in its boardroom in the last year, this has not sufficiently mitigated our overall negative view of governance and oversight at the company. We will continue to vote against the Chairman, the Senior Independent Director and the Chairman of the Audit Committee at their upcoming AGM.

As UK based shareholders, we are vehemently against the proposal the company has put forward to take away our voting rights under a hard Brexit scenario. One share, one vote is a fundamental pillar of good governance that companies should uphold.

We are also concerned with Ryanair’s corporate governance and poor stakeholder management, which could have an impact on the long term future of the company. We have had long-standing issues with the independence of Ryanair’s board and with the extent to which the board can provide effective challenge to management decisions. The recent labour unrest, operational issues, and the decision to take away our voting rights under a hard Brexit scenario has crystallised our concerns. 

While we recognise that Ryanair has taken some steps towards improving the level of independence in its boardroom in the last year, this has not sufficiently mitigated our overall negative view of governance and oversight at the company. We will continue to vote against the Chairman, the Senior Independent Director and the Chairman of the Audit Committee at their upcoming AGM.

Past performance is no guide to the future. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.