Wizz Air chief Váradi signs on for five more years after £100m bonus plan approved
Wizz Air chief executive Joszef Váradi has today signed a new five-year contract with the Hungarian airline, a week after his whopping new bonus plan was approved by shareholders.
With the exception of the bonus plan, which could see him take home a maximum of £100m, the other terms of Váradi’s deal remain the same.
The 55-year-old has led the airline since it was founded in 2003.
Chairman Bill Franke said: “We are delighted to announce a new long-term service agreement with József, our founding CEO, who has been the driving force in developing Wizz Air to become a leading player in European aviation and one of the world’s true ultra-low-cost carriers.”
Yesterday investors in the budget airline voted 68 per cent to 32 per cent in favour of its “Value Creation Plan”, a strategy that could see the boss awarded a £100m bonus if he can increase its market cap to more than £12bn.
That would require Wizz Air to more-than-double its current value.
Such a bonus would be one of the biggest ever payouts given by a London-listed firm, and would make Varadi the best-paid European airline chief.
In order to qualify for the award, he will have to increase Wizz Air’s share price from £48 to £120 over the next half-decade, with money to be paid in shares over a four year period.
The airline received another bloody nose from investors as its overall remuneration policy was voted through by a similar margin.
The offer underlines how keen the airline is to keep the airline’s founder, who has been responsible for its rapid expansion in recent years.
Even during the pandemic, when many of its competitors were closing bases and trimming routes, Wizz Air has continued to expand into new markets.
It recently launched a subsidiary in the Middle East, and has opened dozens of new routes over the past 12 months, including today two new routes to Barcelona and Cologne from July.