Norwegian Cruise CEO Total Pay Doubles to Over $ 36 Million During COVID Year

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In a year in which Norwegian Cruise Line Holdings Ltd. lost $ 4 billion and employee salaries were cut by 20% as the cruise operator struggled to deal with closures related to COVID-19, payment CEO Frank Del Rio’s total more than doubled to more than $ 36 million. . The company NCLH, + 1.06% revealed Wednesday in its proxy statement filed with the Securities and Exchange Commission that Del Rio’s total compensation in 2020 was $ 36.38 million, up from $ 17.81 million in 2019.

Most of the increase was “all other compensation,” which amounted to $ 10.48 million from $ 270,040. Included in that increase was $ 10.27 million from a “prior contract payment,” which is owed under his prior employment agreement that was amended in August 2017, the filing showed. Also included was a “travel allowance” of $ 100,000, $ 20,000 for “country club membership” and a “personal allowance” of $ 12,000, all the same as the previous year. Meanwhile, the 401 (k) contribution increased to $ 14,025 in 2020 from $ 13,700 in 2019. Note that the “COVID-19 Action Plan” announced a year ago in the early stages of the pandemic included organizing “and” the employer paused the 401 (k) supplemental contribution. ”The action plan also included a 20% salary reduction for shore-based employees, which when prorated led to Del Rio’s base salary being reduced by $ 272,459, or 15%, to $ 1.53 million. Instead, Del Rio received an “incentive bonus” of $ 2.82 million in 2020, after not receiving any bonuses in the previous two years, which required Del Rio to remain with the company. through 2021. If Del Rio leaves the company for any reason other than qualification termination, you will be required to refund 100% of the incentive bonus. Elsewhere in Del Rio’s 2020 pay package, the plan compensation of non-equity incentives remained unchanged at $ 3.60 million s, while the value of stock awards increased to $ 17.95 million from $ 12.20 million in 2019. Meanwhile, Del Rio said in February that 2020 was “without a doubt the most challenging year in the company’s 50-year history. ”As the company went to a net loss of $ 4.01 billion from net income of $ 930.2 million in 2019 and total revenue fell 80.2% to $ 1.28 billion. Norwegian Cruise shares rose 1.2% in Wednesday afternoon trading, leading them to a sixth straight gain. The stock is up 23.7% to date. The stock recently rallied when investors saw the light at the end of a long tunnel. Norwegian Cruise said this week that it planned to restart cruise operations from U.S. ports on July 4, following its request that the Centers for Disease Control and Prevention (CDC) lift its Conditional Shipping Order. . In 2020, the shares fell 56.5%, after rising 37.8% in 2019. In comparison, the shares of rival Royal Caribbean Group RCL, + 0.89% fell 44.1% in 2020 and Carnival Corp. CCL, + 1.21% shares fell 57.4%, while the S&P 500 Index gained 16.3%. Among Norwegian Cruise’s other Named Executive Officers (NEOs), total compensation in 2020 for CFO Mark Kempa increased 44.7% from 2019 to $ 5.79 million; for executive vice president of ship operations, Robin Lindsay increased 71.3% to $ 6.85 million; for CEO, Regent Jason Montague grew 58.7% to $ 6.36 million; and for the CEO, the Norwegian Harry Sommer rose 57.0% to 6.29 million dollars.