Guess this is why fares are so high

[captjohn]

Think I got into the wrong business !!

 

Del Rio compensation doubled to $22m in 2018 

Frank Del Rio's 2018 compensation would have totaled $14.9m if not for an accounting principle that put long-term awards from 2017 into his 2018 package

 

Frank Del Rio, president and CEO, Norwegian Cruise Line Holdings, received 2018 compensation valued at $22.6m, up from $10.5m the year before.

His compensation would have totaled $14.9m but for the accounting of the company's long-term incentive plan, which put Del Rio's 2017 performance share units into his 2018 compensation.

Del Rio's base salary rose to $1.75m from $1.5m, while stock awards soared to $15.2m from $3.7m the year before. He also received a cash incentive of $5.4m, up from $4.5m, and other compensation of $206,000, including a car allowance, medical plan premium, travel expense allowance and country club membership.

The second highest earning of NCLH's named executives was Wendy Beck, former EVP and CFO, with total compensation valued at $6.6m, up from $3.2 m in 2017.

$5.3m each for Montague, Stuart and Lindsay

Three executives each received total compensation of $5.3m. They are Robin Lindsay, EVP vessel operations for NCLH; Andy Stuart, president and CEO, Norwegian Cruise Line; and Jason Montague, president and CEO, Regent Seven Seas Cruises.

Total 2017 compensation for each of the three executives was $3.2m.

In 2018, Lindsay, Stuart and Montague received salaries of $700,000, up from $650,000 the prior year. Each received a $1.75m cash bonus, up from the $975,000 in 2017, and higher stock awards.

The total compensation for her Beck's successor, EVP and CFO Mark Kempa, was $3m. His salary was $856,000, and his cash bonus was $1.57m.

Edited April 12, 2019 by captjohn
link would not work

[captjohn]

Sorry, my link would not work.

[Travelcat2]

And, IMO, he is worth every penny?

[travelwell]

I agree with Travelcat! He is a visionary and a guiding hand for both Oceania and Regent. He has proven himself. His comments  15 years ago on the Oceania boards made me try Oceania. At the time he was fairly active on the cruise critic boards and actually responded to several of my posts. This was unusual at the time and I was impressed. That Oceania cruise led to a Regent cruise. The only negative I can say is that he has directly effected my budget as we are now booked on Regents 2021 WC.

[Ladys Mom]

As a lover of Regent and Oceania, and as a stockholder, I think they are worth what they receive.  My stock has gone up substantially this year and the service and benefits we receive on Regent can't be beat.  For many years we were devoted Celebrity cruisers, then out of nowhere (at least to us) they changed the whole Captain's Club program and we were no longer at the top level.  When we were ready to take an extensive cruise (at least for Celebrity) and we called to see if we could be grandfathered into our previous level, the answer was emphatically, NO.  We love the fact that Regent bumps you up to the next level at the start of a cruise as well as the quality of the benefits comes from the top.  They get a lot of money, but so do other executives who are not as responsive to their customers.

[Hambagahle]

I think that as long as a person managing a company delivers what the stockholders want - profit mostly but also reputation, vision etc. - then whatever salary he earns concerns only the stockholders.  If they approve it - who am I to question it.

 

In the case of FDR he started Oceania from scratch and built a wonderful cruise line.  Then took over Regent and was instrumental in getting Explorer built (and now Splendour...)   Much of Regent's reputation is due to FDR.  Then he was asked to take on Norwegian after the take over.  And now running the entire group he is doing a first class job which demands a first class salary.  Whatever the NCL stockholders deem appropriate is just fine with me...  having sailed a few times on Oceania I can attest to the extremely high regard the crew on their ships have for him.  They love having him on board.  And that, I believe, says a great deal about Frank del Rio.

[flossie009]

Whether any individual is "worth" $22m may be debatable, but taking NCLH's combined fleet of 26 ships with approximately 54,400 berths then, by my calculation, FdR's total remuneration accounts for just over one dollar per berth per day.

So, if my maths is correct, the proposition introduced in the title of this topic appears flawed.

[wcsdkqh]

Good Afternoon Lady's Mom.  My wife an I are in Hoover and would like to link-up to see if we have any upcoming cruises in common.  Email me: sbk at bellsouth dot net

[UUNetBill]

If you look at his compensation breakdown, his salary is a small portion of his overall comp - the bulk of it coming in stock awards.  Most CEOs tend to be similarly compensated, i.e. the better their company does, the better they do.

 

I'd rather see someone running a company that employs over 30,000 people and provides the type of service they provide receive $22.6 mil than I would someone who runs or throws a ball or makes a movie.

 

It never ceases to amaze me that people will begrudge a CEO of a major corporation making over $20 million a year, but they don't bat an eye when an actor or sports figure makes that or more just for entertaining people...just my opinion.

[UUNetBill]

On 4/13/2019 at 3:41 PM, flossie009 said:

So, if my maths is correct, the proposition introduced in the title of this topic appears flawed.

Agreed.  NCLH does $5.5 BILLION in sales annually.  That kind of business doesn't just run itself.  You could triple FDRs salary and it would barely register as a bump on cruise fares...

[ronrick1943]

Have to agree I just don't see a problem--most CEO's get those amount because they perform that's the bottomline.  Most people are happy with the service, food and what you get for the dollars you spend. 

[fudgbug]

On 4/13/2019 at 2:50 PM, Hambagahle said:

I think that as long as a person managing a company delivers what the stockholders want - profit mostly but also reputation, vision etc. - then whatever salary he earns concerns only the stockholders.  If they approve it - who am I to question it.

 

In the case of FDR he started Oceania from scratch and built a wonderful cruise line.  Then took over Regent and was instrumental in getting Explorer built (and now Splendour...)   Much of Regent's reputation is due to FDR.  Then he was asked to take on Norwegian after the take over.  And now running the entire group he is doing a first class job which demands a first class salary.  Whatever the NCL stockholders deem appropriate is just fine with me...  having sailed a few times on Oceania I can attest to the extremely high regard the crew on their ships have for him.  They love having him on board.  And that, I believe, says a great deal about Frank del Rio.

Mark Conroy was no slouch.  Conroy brought out the Mariner and Voyager.

[Travelcat2]

39 minutes ago, fudgbug said:

Mark Conroy was no slouch.  Conroy brought out the Mariner and Voyager.

 

Love Mark Conroy.  He did indeed launch Mariner and Voyager (Radisson/Regent was under private ownership then.  When PCH purchased Regent, Mark reported to Frank Del Rio until he left the company.  Glad to see him at Silversea as, in my humble opinion, Silversea needed his help.  

[fudgbug]

25 minutes ago, Travelcat2 said:

 

Love Mark Conroy.  He did indeed launch Mariner and Voyager (Radisson/Regent was under private ownership then.  When PCH purchased Regent, Mark reported to Frank Del Rio until he left the company.  Glad to see him at Silversea as, in my humble opinion, Silversea needed his help.  

Do you remember Janet and Christian?  They were great!

[cruiseluv]

On 4/12/2019 at 7:33 PM, captjohn said:

Think I got into the wrong business !!

 

Del Rio compensation doubled to $22m in 2018 

 

Guess I see things differently. IMO the Board has authorized this compensation because under Mr Del Rios leadership NCL has been able to become a leader in the market, and yes, he manages a product like Regent for which people are willing to pay what some consider exorbitant prices. In the end, the prices of a product like cruising is set by the market. 

[captjohn]

You guys just can't take a joke! My editorial was "tongue in cheek" .

[Hambagahle]

11 hours ago, fudgbug said:

Mark Conroy was no slouch.  Conroy brought out the Mariner and Voyager.

Totally agree - Mark Conroy is a fine person.  And agree with TC that Silversea is lucky to have him.  That said, FDR is a breed apart!

[bbtondo]

When I had a problem with my regent cruise to Tahiti 15 years ago, Mark Conroy personally handled it.  And, it wasn't regent's fault.  It was my lousy TA at the time.  I will never forget his kindness.

[fudgbug]

Mark is a special someone.  We were on the Mariner and Voyager with him and Christain Saleh when the ships came out of the shipyard.  Mark made bringing those ships out special.  One can't forget Janet Gasliewski (sp) either.

[markdgriffin]

On 4/12/2019 at 6:33 PM, captjohn said:

Think I got into the wrong business !!

 

Del Rio compensation doubled to $22m in 2018 

Frank Del Rio's 2018 compensation would have totaled $14.9m if not for an accounting principle that put long-term awards from 2017 into his 2018 package

 

Frank Del Rio, president and CEO, Norwegian Cruise Line Holdings, received 2018 compensation valued at $22.6m, up from $10.5m the year before.

His compensation would have totaled $14.9m but for the accounting of the company's long-term incentive plan, which put Del Rio's 2017 performance share units into his 2018 compensation.

Del Rio's base salary rose to $1.75m from $1.5m, while stock awards soared to $15.2m from $3.7m the year before. He also received a cash incentive of $5.4m, up from $4.5m, and other compensation of $206,000, including a car allowance, medical plan premium, travel expense allowance and country club membership.

The second highest earning of NCLH's named executives was Wendy Beck, former EVP and CFO, with total compensation valued at $6.6m, up from $3.2 m in 2017.

$5.3m each for Montague, Stuart and Lindsay

Three executives each received total compensation of $5.3m. They are Robin Lindsay, EVP vessel operations for NCLH; Andy Stuart, president and CEO, Norwegian Cruise Line; and Jason Montague, president and CEO, Regent Seven Seas Cruises.

Total 2017 compensation for each of the three executives was $3.2m.

In 2018, Lindsay, Stuart and Montague received salaries of $700,000, up from $650,000 the prior year. Each received a $1.75m cash bonus, up from the $975,000 in 2017, and higher stock awards.

The total compensation for her Beck's successor, EVP and CFO Mark Kempa, was $3m. His salary was $856,000, and his cash bonus was $1.57m.

Seems to be a very good CEO.  After my experience as a customer and after reviewing the financial performance of the company he runs, I would say if $22 million a year is what it takes to keep him around, so be it. While obviously not directly connected to the CEO, but an indicator of a well run company was my interaction with a very young assistant waiter in Prime 7 on the Explorer recently in which she twice said, unsolicited, “I love my job”.  

 

 

[Travelcat2]

4 hours ago, markdgriffin said:

Seems to be a very good CEO.  After my experience as a customer and after reviewing the financial performance of the company he runs, I would say if $22 million a year is what it takes to keep him around, so be it. While obviously not directly connected to the CEO, but an indicator of a well run company was my interaction with a very young assistant waiter in Prime 7 on the Explorer recently in which she twice said, unsolicited, “I love my job”.  

 

 

 

Actually, a lot of what you experience on Regent and Oceania is from Mr. Del Rio as he was the CEO of Regent and Oceania for some years prior to NCLH purchasing Regent.  When he became CEO of NCLH, he promoted/assigned a CEO/President to Regent, Oceania and NCL.  

 

The design of Explorer was under the close scrutiny of Frank Del Rio.  In fact, for Regent and Oceania (not sure about NCL), he personally purchases artwork and helps hang them so they are exactly the way he wants it.  The changes on the upcoming Splendor is also his ideas.  

 

During the refurbishment of the ships, he has been known to be onboard working - even when the ship doesn't have electricity (and yes - he does spend the night on the ships during refurbishment - he doesn't go to a 6 star hotel somewhere).

 

As someone else mentioned, this man is a visionary.  I know him as a kind, caring, family-oriented man that works harder than anyone I have met.  He is also a darn good race car driver (on NCL's racetrack onboard NCL Bliss).  

[RachelG]

I have no problem with smart hardworking people being compensated.  But I do have issues with the media making it seem that he is getting all this in cash, which he is not.  Most is in stock options.

 

[UUNetBill]

On 6/30/2019 at 4:20 PM, RachelG said:

I have no problem with smart hardworking people being compensated.  But I do have issues with the media making it seem that he is getting all this in cash, which he is not.  Most is in stock options.

 

My problem is the press vilifying CEOs who make $10-20 mil a year yet they don't blink when actors or sports figures make the same or more.  Who is really contributing to something worthwhile?  But I don't want to get political so I'll shut my yap now...