Shareholder Revolt Against Wizz Air CEO’s Extravagant Pay Deal

Wizz Air has faced significant opposition from its shareholders over plans to substantially increase CEO Jozsef Váradi’s compensation. The airline proposed a restricted share award for Váradi, equivalent to 300% of his rough $949,06 salary, sparking a backlash at its annual general meeting, where 34.42% of shareholders voted against the company’s remuneration policy.

The airline defended the proposed pay package by citing unprecedented challenges, which severely impacted its operations. In addition, Wizz Air has encountered significant engine issues with its Pratt & Whitney fleet, leading to the grounding of multiple aircraft.

Plans have also been put forward for another share-based reward for Váradi, potentially amounting to 500% of his salary by 2026. However, concerns remain, as the company’s stock has plummeted, currently trading around $18 per share—far below the $160.3 target necessary for Váradi to secure a $133.6 million bonus.

The revolt continued as 32.23% of votes were cast against Wizz Air’s Omnibus Plan, and over 14% of shareholders opposed the re-election of non-executive director Barry Eccleston. Notably, the opposition surged to 20% during a subsequent independent vote concerning Eccleston’s re-election. Eccleston, who has served on the board since 2018, was previously the CEO of Airbus Americas.

Following the AGM, Wizz Air issued a statement through the London Stock Exchange acknowledging the shareholder dissent. The board committed to further engagement with shareholders regarding executive pay and governance issues, promising to provide an update within six months in line with the UK Corporate Governance Code.

Despite the unrest, the company noted that most AGM resolutions received broad support and expressed gratitude for shareholders’ continued dialogue with the firm.

The turbulence surrounding Wizz Air’s leadership comes as short sellers increasingly bet against the airline, with 13% of the company’s stock now out on loan—a sign of growing investor pessimism. Wizz Air has struggled amid ongoing geopolitical crises and operational setbacks, reporting a sharp 40% decline in share value this year. Additionally, its recent quarterly profits dropped from $89.4 to $50.2, falling significantly short of expectations and forcing the airline to revise its profit forecast for the year downward.

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