Executive Salaries at Royal - readjusted?

[livingonthebeach]

Haven't read much about the adjustment of executives' salaries, if any.  Fain's salary is around 14 million and with the rest of the executives' salaries -- this is quite a big number. 

In light of all the layoffs and furloughs, it would make sense for these salaries to come down from their lofty levels.  It would be one way of saving money.  Thoughts?

[Mapleleafforever]

They'll probably find a way to give themselves a raise (or bonus) for dealing with all this.

Edited May 16, 2020 by Mapleleafforever

[not-enough-cruising]

Other people's money is none of my business.

[BirdTravels]

With the layoffs and furloughs, there is now money to ensure that the executive contracts are fulfilled. And, remembering that all of those stock options over the years are now pretty much worthless. 

Edited May 16, 2020 by BirdTravels

[time4u2go]

Seems like reducing their salaries would just be a drop in the bucket.

[mek]

10 minutes ago, not-enough-cruising said:

Other people's money is none of my business.

I tend to agree with you - their salaries and compensation are none of my business because I'm not an employee of RCI, but I do think it is the business of those employed by the company, especially with all of the furloughs and lost jobs.

[time4u2go]

2 minutes ago, mek said:

I tend to agree with you - their salaries and compensation are none of my business because I'm not an employee of RCI, but I do think it is the business of those employed by the company, especially with all of the furloughs and lost jobs.

It's probably also the business of the company's shareholders.

[livingonthebeach]

Looks like Richard Fain is forgoing some of his salary:

https://www.businessinsider.com/royal-caribbean-cruises-ceo-foregoes-salary-executive-pay-cuts-coronavirus-2020-4

[not-enough-cruising]

4 minutes ago, mek said:

I tend to agree with you - their salaries and compensation are none of my business because I'm not an employee of RCI, but I do think it is the business of those employed by the company, especially with all of the furloughs and lost jobs.

 

1 minute ago, time4u2go said:

It's probably also the business of the company's shareholders.

Shareholders - yes absolutely

 

Employees - no never

[mek]

1 minute ago, not-enough-cruising said:

 

Shareholders - yes absolutely

 

Employees - no never

Well I'm neither, so I don't care or care to know.

[EscapeFromConnecticut]

5 minutes ago, mek said:

I tend to agree with you - their salaries and compensation are none of my business because I'm not an employee of RCI, but I do think it is the business of those employed by the company, especially with all of the furloughs and lost jobs.

Actually, compensation is always the business of customers - because we pay for it. 
For every RCI nickle-and-dime deal that RCI ever pushed through, a percentage was going to Fain's bonuses. 
 

In this case, RCI came out marginally better than the CCL family - it's poor Princess that has become the public face of the industry's catastrophic COVID decisions. But there's nothing in the RCI senior execs' performance to justify even half of those chart figures.

[jalves]

I would hope that the Board of Directors will adjust the salary and bonus provisions to include a measure of how they bring back the company from current conditions.  

[EscapeFromConnecticut]

8 minutes ago, jalves said:

I would hope that the Board of Directors will adjust the salary and bonus provisions to include a measure of how they bring back the company from current conditions.  

The board should claw back a boatload of money for how miserably senior management has dealt with this fiasco:

https://www.cruiselawnews.com/2020/05/articles/disease/63-days-stuck-at-sea-protest-erupts-on-royal-caribbeans-majesty-of-the-seas/

[SRF]

3 hours ago, livingonthebeach said:

Haven't read much about the adjustment of executives' salaries, if any.  Fain's salary is around 14 million and with the rest of the executives' salaries -- this is quite a big number. 

In light of all the layoffs and furloughs, it would make sense for these salaries to come down from their lofty levels.  It would be one way of saving money.  Thoughts?

 

Read the table.

 

SALARY is $1.3 million.

 

The rest is based on stock and performance.  Unlikely to make much in those columns this year.

[flyguyjake]

The Rich always find a way to get richer. Corporate greed always prevails at any cost. JCPenny just filed BK and their top execs got $10 mill in bonuses. It's utterly disgusting, yet perfectly legal unfortunately.

 

https://www.forbes.com/sites/warrenshoulberg/2020/05/13/soltau-and-team-taking-10-million-in-bonuses-out-of-sinking-penney/#5889c7c01f55

[ONECRUISER]

3 hours ago, not-enough-cruising said:

Other people's money is none of my business.

Agree, well said

[time4u2go]

50 minutes ago, SRF said:

 

Read the table.

 

SALARY is $1.3 million.

 

The rest is based on stock and performance.  Unlikely to make much in those columns this year.

Good point. That makes their compensation even more miniscule when compared to revenue. 

[ONECRUISER]

4 minutes ago, time4u2go said:

Good point. That makes their compensation even more miniscule when compared to revenue. 

Yes, and majority of income is/was Stock

[yogimax]

2 hours ago, jalves said:

I would hope that the Board of Directors will adjust the salary and bonus provisions to include a measure of how they bring back the company from current conditions.  

The Board of Directors are also paid.  In many cases, the majority of the board are the friends and buddies of the executives.  They also have many unseen perks.

 

Bottom line... don't count on the board to hold management accountable!

[A&L_Ont]

For those not happy with this, as of now, RC has not received any Federal compensation.  
 

The airlines have.  For some reason I would tend to think the executives there are getting comparable pay, not to mention they have laid off employees.

 

I’m not saying one is right and the other is not.  I’m just looking at the bigger picture. 

Edited May 16, 2020 by A&L_Ont

[livingonthebeach]

1 hour ago, SRF said:

 

Read the table.

 

SALARY is $1.3 million.

 

The rest is based on stock and performance.  Unlikely to make much in those columns this year.

 

I guess compared to Frank del Rio's compensation it's chump change.  🤣 

 

Edited May 16, 2020 by livingonthebeach

[jalves]

1 hour ago, yogimax said:

The Board of Directors are also paid.  In many cases, the majority of the board are the friends and buddies of the executives.  They also have many unseen perks.

The board's compensation is spelled out in the company's SEC filings.

[not-enough-cruising]

5 hours ago, EscapeFromConnecticut said:

The board should claw back a boatload of money for how miserably senior management has dealt with this fiasco:

https://www.cruiselawnews.com/2020/05/articles/disease/63-days-stuck-at-sea-protest-erupts-on-royal-caribbeans-majesty-of-the-seas/

I really don’t think that management failed miserably. Considering what they are up against I’d say, from a business standpoint, they have done remarkably well. 

[EscapeFromConnecticut]

6 minutes ago, not-enough-cruising said:

I really don’t think that management failed miserably. Considering what they are up against I’d say, from a business standpoint, they have done remarkably well. 

Interesting. I suppose we'll agree to disagree. 

I find not one metric where cruise executives have excelled. From the initial & catastrophic "full speed ahead" decisions of February and March to the wretchedly bungled public communications to the refunds debacle to the crew repatriation fiasco ... Fain could work free for the year & he'd still be way overpaid.

[Seville2Cabo]

11 minutes ago, EscapeFromConnecticut said:

Interesting. I suppose we'll agree to disagree. 

I find not one metric where cruise executives have excelled. From the initial & catastrophic "full speed ahead" decisions of February and March to the wretchedly bungled public communications to the refunds debacle to the crew repatriation fiasco ... Fain could work free for the year & he'd still be way overpaid.

What would you have done different?  The cruise industry has significantly different and difficult issues with the pandemic then any other industry.  Disney just said “we are closed“ “employees don’t show up tomorrow”. Airlines are still flying.

I’m not sure what I would have done different, but remember the executives work for the share holders, not the customers.  And their bonus is based, I assume, on share price, ROI and other financial items, but probably not how fast refunds happened.  If the company survives without bankruptcy, he has probably done a great job.