Kevin Sheehan Resigns

[Travel Junkie Judy]

NCL stock plummeted over 3 percentage points on the announcement of Kevin Sheehan's departure. Makes sense. Kevin Sheehan brought some hugely dynamic and edgy ideas to the cruise industry. He made NCL a distinctive brand. Have serious doubts that Di Rio has either the inclination or the ability to follow suit.

His statements say he will leave Oceania and Regent as is, but will be making changes to NCL which he feels are "improvements". I sailed Regent once. It was boring and uptight. It has its devotees to be sure, but if Di Rio tries to snotisize NCL, then the cruise line will be back in the red as is was when Kevin Sheehan joined and turned it around.

 

I so agree with your comment concerning the worry that Del Rio may try to "upgrade" NCL to what he considers elite status.

To me it means more expensive and snobby.

 

I hope our new CEO will leave NCL right where it is - an affordable, wonderful cruise line with Officers and Crew that are amazing, friendly, and helpful.

 

I have noticed that the prices have already started moving up.

We are booked on the JADE next fall - Barcelona to Houston.

The price of our suite (will this be the last time?) when we booked in Sept was around $1600 to $1700 cheaper - for 2 people.

I know prices go up, but not usually at that rate.

It's been nearly that high since November.

 

Are you listening Mr. Del Rio?

I am a VERY loyal NCL cruiser - for example - 28 days on NCL from Oct 31 through Dec 13, 2014.

We have done 4 to 5 NCL cruises a year for the last few years.

I wonder if we can afford to do that again?

Looks doubtful.

 

Please, please don't force me to look elsewhere.

 

Judy

[Demonyte]

I so agree with your comment concerning the worry that Del Rio may try to "upgrade" NCL to what he considers elite status.

To me it means more expensive and snobby.

 

Actually, if I remember correctly, already Mr Sheehan stated that they want to transform NCL to higher class cruise line than it is now.

[SissasMomE]

Actually, if I remember correctly, already Mr Sheehan stated that they want to transform NCL to higher class cruise line than it is now.

 

I am ok with that.

[Uniall]

Miami Herald

http://www.miamiherald.com/news/business/tourism-cruises/article5681874.html

 

Miami Sun-Sentinel

http://www.sun-sentinel.com/business/tourism/fl-norwegian-sheehan-resigns-20150109-story.html

 

Cruise Critic .Com

http://www.cruisecritic.com/news/news.cfm?ID=6134

 

It strikes me that there has been intervening factors that are still not public.

 

Sheehan brought NCL back from the edge of finanancial disaster and put it on solid footing.

Next he embarked on fleet expansion program with a new class of ships: 2 at sea, 1 ready for delivery, and 2 more ready to go. The Sheehan plan put together a fleet of 14 ships at sea by 2015 and 16 ships by 2018.

Then, Sheehan oversaw the further expansion of the NCL brand with the aquisition of three Regent 7 Seas ships and five Oceania ships.

 

Not too shabby results for a five year run. Bring a cruise line back from the brink of bankruptcy, increase the fleet size from 10 to 21 with two more on order and be positioned to go toe to toe with the Big Boys in the industry.

 

The original public plan was to have Sheehan take the reigns of the Parent Holding Corporation where he would continue using his expertise as "Bean Counter Extraordinaire".

 

Turn the reigns of the NCL fleet over to Drew Madsen (former CEO of Darden Restaurants: Olive Garden, Red Lobester & LongHorn Steaks) a hit the ground running as a Food and Beverage expert.

 

Bring over Frank Del Rio in his continuing capacity as CEO of Regent 7 Seas Line's and Oceania Cruise Line's ships utilizing his career long expertise in the Cruise Line Industry.

 

It was a Management 101 text book example of a Cruise Industry "Management Dream Team" that only lacked the addition of an Hotel Industry expert to make it perfect.

 

Which begs the question: "What the heck just happened?"

Edited January 11, 2015 by Uniall

[Love my butler]

Yep, took a company that was bleeding money out of every orifice and turned it into a company that makes a profit while adding ships to the line. Most company's would love to have things screwed up like that:).

 

Corporate profits up, passenger satisfaction way down. I don't own NCL stock and never will. I cruise for enjoyment.

 

If you are a shareholder things are not screwed up. If you are a passenger, they are.

[Kingmaker_inc]

I met Kevin Sheehan on the Breakaway' s inaugural transatlantic cruise. He was so gracious to everyone who approached him. I appreciate his leadership and innovation. My husband always says he had to pry me way from Disney with a crowbar but really the NCL product sold itself. Best wishes to him and his family.

 

 

This is lovely. I fully agree.

[WildcatRock]

Corporate profits up, passenger satisfaction way down. I don't own NCL stock and never will. I cruise for enjoyment.

 

If you are a shareholder things are not screwed up. If you are a passenger, they are.

 

I own NCL stock and am really happy, I cruise on NCL and am really happy. Sorry you're not - have you thought about renting an RV and cruising the highways since you're always so unhappy with NCL?

 

Sent from my XT1080 using Forums mobile app

[sparks1093]

Corporate profits up, passenger satisfaction way down. I don't own NCL stock and never will. I cruise for enjoyment.

 

If you are a shareholder things are not screwed up. If you are a passenger, they are.

Your satisfaction may be way down but i am sure the data that they have in the board room shows different (and is much more comprehensive than anything either one of us is likely to see).

[Jancruz]

Miami Herald

http://www.miamiherald.com/news/business/tourism-cruises/article5681874.html

 

Miami Sun-Sentinel

http://www.sun-sentinel.com/business/tourism/fl-norwegian-sheehan-resigns-20150109-story.html

 

Cruise Critic .Com

http://www.cruisecritic.com/news/news.cfm?ID=6134

 

It strikes me that there has been intervening factors that are still not public.

 

Sheehan brought NCL back from the edge of finanancial disaster and put it on solid footing.

Next he embarked on fleet expansion program with a new class of ships: 2 at sea, 1 ready for delivery, and 2 more ready to go. The Sheehan plan put together a fleet of 14 ships at sea by 2015 and 16 ships by 2018.

Then, Sheehan oversaw the further expansion of the NCL brand with the aquisition of three Regent 7 Seas ships and five Oceania ships.

 

Not too shabby results for a five year run. Bring a cruise line back from the brink of bankruptcy, increase the fleet size from 10 to 21 with two more on order and be positioned to go toe to toe with the Big Boys in the industry.

 

The original public plan was to have Sheehan take the reigns of the Parent Holding Corporation where he would continue using his expertise as "Bean Counter Extraordinaire".

 

Turn the reigns of the NCL fleet over to Drew Madsen (former CEO of Darden Restaurants: Olive Garden, Red Lobester & LongHorn Steaks) a hit the ground running as a Food and Beverage expert.

 

Bring over Frank Del Rio in his continuing capacity as CEO of Regent 7 Seas Line's and Oceania Cruise Line's ships utilizing his career long expertise in the Cruise Line Industry.

 

It was a Management 101 text book example of a Cruise Industry "Management Dream Team" that only lacked the addition of an Hotel Industry expert to make it perfect.

 

Which begs the question: "What the heck just happened?"

 

Obviously the plan changed...

Jancruz1

[Uniall]

Obviously the plan changed...

Jancruz1

 

But the big question is WHY?

Edited January 11, 2015 by Uniall

[Sootie]

But the big question is WHY?

 

My thought is: "If it isn't broke don't fix it!"

[Uniall]

My thought is: "If it isn't broke don't fix it!"

 

Ya think? LOL

[punkincc]

If it was heath/personal issues then the press release would have likely said this.

 

 

Not necessarily. I know it's hard to believe in this day and age, but to many people, a "personal issue" is just, well, personal, and some people do wish to keep their personal lives private.

 

My guess is that he feels it is the right time to move on to a new challenge, and when the time is right for that announcement we'll hear about it.

[Linda the Book Lover]

This is an interesting thread. A few posters did mention "personal reasons" for the sudden departure but for all we know it may have been in the works for awhile and the final action had just not taken place. Personal as we all knows can be anything from illness to I am just too through and need to move on. Smooth sailing to him.

 

Meanwhile back at the ranch...I will be watching the prices.;)

[sjbdtz]

But the big question is WHY?

 

Not necessarily. I know it's hard to believe in this day and age, but to many people, a "personal issue" is just, well, personal, and some people do wish to keep their personal lives private.

 

My guess is that he feels it is the right time to move on to a new challenge, and when the time is right for that announcement we'll hear about it.

 

 

If you read the whole thread, and associated articles, it seems that sometime over the past 3 months, somebody in his family had a health issue which has caused KS to re-think working full-time in Miami.

 

Given that he's probably worth $ 30 - $50 million (I remember reading he took a $25M bonus when Avis/Budget combined...and he was making nearly $8M / year there: http://executives.findthecompany.com/l/5459/Kevin-M-Sheehan ), the man doesn't need to work full-time.

 

 

You can see from his Directorships that he's still a busy man: http://www.marketwatch.com/investing/stock/newm/insiders?pid=52947614

 

 

I think that the past few months have been quietly spent with Mr. Del Rio in handing over the reins, getting Board approval of Del Rio as the new CEO, etc.

 

This stunned the market, but I'm betting the Board has been working on this for a couple of months.

 

I wish Kevin & his family well, he most likely feels that he has worked his magic here (a turn-around specialist may start to feel bored once the turning around is complete), and wants to spend time with family.

 

I respect that.

 

 

.

[Uniall]

Close your eyes and say: "I want to believe, I want to believe, I want to believe"

 

Or, consider the train of events:

the out of the blue resignation of Sheehan's that caught NCL by surprise,

the after the fact response to an inquiry by a Wall Street analyst to protect the value of NCL stocks,

the large for past AND future monies still owed to Sheehan (with standard contractual provision subject to maintaining NCL's good name and reputation).

 

Does this picture, taken in November, look like Sheehan was planning on resigning?

 

 

 

 

Miami Sun-Sentinal

"...A press release Friday gave no explanation for Kevin Sheehan's departure. It said the board of directors named Frank Del Rio, CEO of Prestige Cruises International Inc., as his replacement."

 

"...This was definitely a surprise for everybody, but I was assured it had nothing to do with the company but personal reasons," said JaimeKatz, a Morningstar analyst who contacted Norwegian about Sheehan's abrupt departure. "They didn't elaborate, but [the response] allayed my fears."

 

"...A company regulatory filing Friday showed that Sheehan resigned effective Thursday. As part of a separation agreement with Norwegian, he is entitled to accrued and unpaid salary and vacation time through Jan. 8 and a 2014 incentive bonus of $1.62 million, among other benefits.

 

In June 2013, Sheehan's contract was amended to a new three-year term and increase in annual base salary of $1.55 million, according to company documents. He was entitled to a 5 percent salary increase each anniversary."

[njhorseman]

Close your eyes and say: "I want to believe, I want to believe, I want to believe"

 

Or, consider the train of events:

the out of the blue resignation of Sheehan's that caught NCL by surprise,

the after the fact response to an inquiry by a Wall Street analyst to protect the value of NCL stocks,

the large for past AND future monies still owed to Sheehan (with standard contractual provision subject to maintaining NCL's good name and reputation).

 

Does this picture, taken in November, look like Sheehan was planning on resigning?

 

 

 

 

Miami Sun-Sentinal

"...A press release Friday gave no explanation for Kevin Sheehan's departure. It said the board of directors named Frank Del Rio, CEO of Prestige Cruises International Inc., as his replacement."

 

"...This was definitely a surprise for everybody, but I was assured it had nothing to do with the company but personal reasons," said JaimeKatz, a Morningstar analyst who contacted Norwegian about Sheehan's abrupt departure. "They didn't elaborate, but [the response] allayed my fears."

 

"...A company regulatory filing Friday showed that Sheehan resigned effective Thursday. As part of a separation agreement with Norwegian, he is entitled to accrued and unpaid salary and vacation time through Jan. 8 and a 2014 incentive bonus of $1.62 million, among other benefits.

 

In June 2013, Sheehan's contract was amended to a new three-year term and increase in annual base salary of $1.55 million, according to company documents. He was entitled to a 5 percent salary increase each anniversary."

 

There is absolutely nothing in anything you or anyone else has cited that indicates the resignation was due to anything other than a personal reason.

[Uniall]

There is absolutely nothing in anything you or anyone else has cited that indicates the resignation was due to anything other than a personal reason.

 

The first mention of "personal reasons" comes from the report of a Wall Street analyst who says that's what she was told when she spoke off the record with an undisclosed source in NCL promted by the drop of 6% in NCL's stock value triggered by the unexpected resignation.

 

Moreover, "Personal Reasons" is a euphanism for a myriad of things like:

I don't know, we haven't a clue, I'm really ticked off but can't say anything, my doctor just told me I have 4 weeks to live, etc. etc.

 

It is an expression that has so many possible meanings that it's rendered meaningless.

It's the old standby, "No Comment", on Steroids.

Edited January 11, 2015 by Uniall

[dexddd]

Actually, if I remember correctly, already Mr Sheehan stated that they want to transform NCL to higher class cruise line than it is now.

 

There was a link to an article in a thread by loubetti a few months back quoting KS on exactly this. I seem to recall the quote being that NCL was already an upscale cruise line or maybe it was that they were close to being an upscale cruise line.

[sjbdtz]

If you read the whole thread, and associated articles, it seems that sometime over the past 3 months, somebody in his family had a health issue which has caused KS to re-think working full-time in Miami.

 

 

I think that the past few months have been quietly spent with Mr. Del Rio in handing over the reins, getting Board approval of Del Rio as the new CEO, etc.

 

This stunned the market, but I'm betting the Board has been working on this for a couple of months.

 

 

 

.

 

Close your eyes and say: "I want to believe, I want to believe, I want to believe"

 

Or, consider the train of events:

the out of the blue resignation of Sheehan's that caught NCL by surprise,

the after the fact response to an inquiry by a Wall Street analyst to protect the value of NCL stocks,

 

Does this picture, taken in November, look like Sheehan was planning on resigning?

 

 

 

 

Miami Sun-Sentinal

"...A press release Friday gave no explanation for Kevin Sheehan's departure. It said the board of directors named Frank Del Rio, CEO of Prestige Cruises International Inc., as his replacement."

 

"...This was definitely a surprise for everybody, but I was assured it had nothing to do with the company but personal reasons," said JaimeKatz, a Morningstar analyst who contacted Norwegian about Sheehan's abrupt departure. "They didn't elaborate, but [the response] allayed my fears."

 

 

 

 

 

With the company set for success, I hand the baton off to Frank, a proven leader in the cruise industry," said Mr. Sheehan.

 

 

 

I'm guessing you also believe in ChemTrails & the Grassy Knoll?

 

 

You'd feel better if he broadcast his personal concerns publicly? I'm a shareholder, and think that he's entitled to his privacy.

 

 

Stephen

 

.

[CPT Trips]

My thought is: "If it isn't broke don't fix it!"

 

IIRC, the same sage wrote "constantly innovate."

[Uniall]

With the company set for success, I hand the baton off to Frank, a proven leader in the cruise industry," said Mr. Sheehan.

 

 

 

I'm guessing you also believe in ChemTrails & the Grassy Knoll?

 

 

You'd feel better if he broadcast his personal concerns publicly? I'm a shareholder, and think that he's entitled to his privacy.

 

 

Stephen

 

.

 

 

Steve,

 

If you're wearing red shoes, click you heels three times and you may wind up in Kansas. LOL

 

The fact that the resignation caught everyone by surprise (NCL top management, Cruise Industry, Wall Street, et al) immediately following Sheehan's Thanksgiving to New Year's vacation is a tell tale sign that something unexpected and unplanned happened between November and January.

 

He may have spent the holidays at his second home in County Limerick, Eire about 10 miles from my favorite Irish Pub (O'Sheehan's Pubs excepted) Durty Nelly's, Est. 1610AD.

 

John

 

PS

I would be remiss if I did not remind you of your own advice to the world at the bottom of your every Cruise Critic posting.

"You're entitled to your own opinion, not to your own set of facts."

(I trust it's not a matter of "do as I say not as I do.")

 

Edited January 11, 2015 by Uniall

[njhorseman]

The first mention of "personal reasons" comes from the report of a Wall Street analyst who says that's what she was told when she spoke off the record with an undisclosed source in NCL promted by the drop of 6% in NCL's stock value triggered by the unexpected resignation.

 

Moreover, "Personal Reasons" is a euphanism for a myriad of things like:

I don't know, we haven't a clue, I'm really ticked off but can't say anything, my doctor just told me I have 4 weeks to live, etc. etc.

 

It is an expression that has so many possible meanings that it's rendered meaningless.

It's the old standby, "No Comment", on Steroids.

 

You may not know exactly what "personal reasons" means, but what it almost certainly doesn't mean is "he was booted out the door because the financials were going in the tank" or anything else that could be reasonably construed as dissatisfaction with his performance.

 

If there is a personal or family health issue behind the resignation, he's entitled to privacy.

[Uniall]

You may not know exactly what "personal reasons" means, but what it almost certainly doesn't mean is "he was booted out the door because the financials were going in the tank" or anything else that could be reasonably construed as dissatisfaction with his performance.

 

If there is a personal or family health issue behind the resignation, he's entitled to privacy.

 

New Jersey horseman, we meet once again.

 

I have never suggested that Sheehan was booted out the door.

In fact, I think Kevin Sheehan saved NCL from financial chaos.

 

On the contrary, I suggested that all the evidence suggests that in November the announced and/or apparent game plan was Sheehan serving as CEO of NCL holding corporation utilizing his financial expertise, Madsen serving as CEO of NCL Cruise Line using his hospitality expertise, and DelRio as CEO of Regent-7-Seas and Oceania Cruise Lines using his cruise industry expertise.

 

Then Sheehan went on vacation in November and resigned after his return in January.

The logical conclusion is "something changed" in 45 days.

 

The only report I've encountered suggesting "personal reasons" is a second hand quote from an unamed source by a Wall Street analyst who had a vested interest in slowing the falling stock prices the day of the announcement. In the law we call that hearsay on hearsay from an unknown source or sometimes just called "garbage."

 

An emotional plea for privacy may be appropriate in most cases.

But, when dealing with a publicly traded corporation with billions of dollars in assets and many thousands of customers with millions of dollars in deposits, the public's right to know must be balanced against the personal privacy.

 

That's not just my personal opinion. It's a foundational aspect of Anglo-American Law.

Edited January 11, 2015 by Uniall

[njhorseman]

New Jersey horseman, we meet once again.

 

I have never suggested that Sheehan was booted out the door.

 

On the contrary, I suggested that all the evidence suggests that in November the announced and/or apparent game plan was Sheehan serving as CEO of NCL holding corporation utilizing his financial expertise, Madsen serving as CEO of NCL Cruise Line using his hospitality expertise, and DelRio as CEO of Regent-7-Seas and Oceania Cruise Lines using his cruise industry expertise.

 

Then Sheehan went on vacation in November and resigned after his return in January.

The logical conclusion is "something changed" in 45 days.

 

The only report I've encountered suggesting "personal reasons" is a second hand quote from an unamed source by a Wall Street analyst who had a vested interest in slowing the falling stock prices the day of the announcement. In the law we call that hearsay on hearsay from an unknown source or sometimes just called "garbage."

 

An emotional plea for privacy may be appropriate in most cases.

But, when dealing with a publicly traded corporation with billions of dollars in assets and many thousands of customers with millions of dollars in deposits, the public's right to know must be balanced against the personal privacy.

 

That's not just my personal opinion. It's a foundational aspect of Anglo-American Law.

 

For starters, NCLH closed down 3.17% on Friday, not 6% as you've stated in your posts.

 

More importantly, the "personal reasons" explanation was not from an unnamed source, but rather from a conversation by a Wells Fargo analyst with Frank Del Rio and CFO Wendy Beck: "Following a conversation with Del Rio and Beck, Wells Fargo said..." http://www.seatrade-insider.com/news/news-headlines/wells-fargo-asks-what-is-going-on-at-norwegian.html

 

Finally, if Sheehan's departure was related to something that could be expected to impact NCLH's earnings, then NCLH is obligated to provide an explanation. If Sheehan's departure occurred because he just wanted to leave (for whatever reason...health...wanted to spend more time with his family...found a good fishing hole...) and there's no anticipated impact on earnings they don't have to say anything...because there is nothing of financial relevance to say.