Wizz Air CEO to receive handsome bonus

The airline's proposals for József Váradi include

a one-off restricted share award on 1 October of 300% of his annual salary of £710,534.

Wizz will also provide Váradi with a long-term incentive plan (LTIP) starting in the 2026 financial year, which would be 500% of his salary (60% restricted shares and 40% performance shares) , according to the notice of the general meeting.

"The Committee believes that this package of measures would address the immediate gap in long-term incentives, retain József, and align his pay with that of the senior team, who have, on a one-off basis this year, received an LTIP award of restricted shares," the AGM document reads.

"Looking forward, continued LTIP awards comprising a combination of Restricted Shares and performance shares will retain the CEO through this challenging period while motivating him to ensure profitable growth. It is anticipated that a similar structure would be applied to the senior management team from the next financial year.

"Notwithstanding current challenges, the Company needs to incentivize entrepreneurial performance to deliver profitable high growth and, so, the VCP would continue to operate but, to ensure that pay caps already agreed with shareholders are maintained, any vesting under the LTIP would be offset against any vesting of the VCP."

Last year, Wizz shareholders approved a two-year extension to a long-term bonus plan that would give Wizz a bonus of £100 million if the company met certain targets.

Váradi will continue to be entitled to the £100 million bonus, but all payments under the new proposals will be offset against previous LTIP awards.

The explanatory notes to the notice of the AGM say that "József’s target pay (salary plus target bonus and expected value of equity) is below all peers, and his realised pay (paid salary plus paid bonus plus vested equity) has been below lower quartile of airline peers over the last three years.

As a result, József has been, over the recent period, by far the worst compensated CEO in the peer group and, absent action, he will remain in that untenable position,

explained Stephen L. Johnson, Interim Chair of the Remuneration Committee.

Shareholders will vote on the resolutions, including the remuneration policy, at a general meeting scheduled for Wednesday.

Cover photo: Hollie Adams/Bloomberg via Getty Images