Executive Salaries at Royal - readjusted?

[lake show cruiser]

3 hours ago, yogimax said:

You make the assumption that the interest of management and shareholders are the same.  But there are times when the interest of management is opposed to the interest of owners.  

 

True

[DCGuy64]

1 hour ago, Joebucks said:

Hate against CEO pay is just a loser mentality that people eat up from victim politics. The amount of stress and responsibility makes that position invaluable to a company. Billions of dollars investments and countless jobs can be lost if the right person is not there. If you think people would take that job, and do it effectively, for peanuts, you're an idiot. Some CEOs will also get higher offers from struggling companies willing to pay extra to save the direction of their company.

 

It's a myth that CEO's salaries are taking away all of the money from the workers. There are countless examples out there that if you completely redistributed a CEOs salary, the average employee would see virtually nothing significant. Not to mention that most of the money being counted is money the CEO would generally create in value in their stock. Which again, is where the bulk of their income is generated from, tying in their work to their earnings.

 

Is it perfect? Nothing is. But anything is better than your liberal views.

 

Apart from that, oftentimes CEO salaries and benefits are contractual, meaning the company knew from the start that its CEO would receive X amount in salary, benefits and stock options. To blame someone simply for exercising his contractual rights seems really odd. But then again, there are people who agree to cruise lines' terms and conditions and then get mad when held to them, so there's that. 😂

[sfaaa]

Everybody wants free handouts or something for nothing be it big salary package, OBC, complementary drinks or some other cruise perks. Some would get all work up when others get it but not them.

[livingonthebeach]

15 minutes ago, grandgeezer said:

Name a few from the ocean cruise industry. Make it easy, name one.

 

In post #50 I mentioned all three CEOs of the biggest cruise lines.   Most of the airline and other transportation companies' CEOs took a big reduction in compensation, the cruise industry did not -- thus the reason this thread was started.  

[xpcdoojk]

21 minutes ago, billslowsky said:

I would never say such a thing.  More like "sub-microscopically influential".

O, I like that much better!😆

[yogimax]

1 hour ago, Joebucks said:

Is it perfect? Nothing is. But anything is better than your liberal views.

There you go with your political hate.

[xpcdoojk]

😵

[Seville2Cabo]

10 minutes ago, livingonthebeach said:

 

In post #50 I mentioned all three CEOs of the biggest cruise lines.   Most of the airline and other transportation companies' CEOs took a big reduction in compensation, the cruise industry did not -- thus the reason this thread was started.  

I haven’t see all the CEO’s numbers, but most gave up salary or a portion of salary.  Which is usually a very small portion of their compensation. 

[billslowsky]

2 hours ago, grandgeezer said:

Name a few from the ocean cruise industry. Make it easy, name one.

Iger, for one, didn't give up 100% of his salary in 2020, he started in April which I believe is the same time as the RCL CEO.  

[grandgeezer]

47 minutes ago, billslowsky said:

Iger, for one, didn't give up 100% of his salary in 2020, he started in April which I believe is the same time as the RCL CEO.  

RCL’s Chairman of the Board got a total of $12,000,000 in 2020. He must have made that before the middle of March if your facts are accurate.

[billslowsky]

15 hours ago, grandgeezer said:

RCL’s Chairman of the Board got a total of $12,000,000 in 2020. He must have made that before the middle of March if your facts are accurate.

$645,000 was salary, the rest was stock based.

[grandgeezer]

4 hours ago, billslowsky said:

$645,000 was salary, the rest was stock based.

Not even close.

Here's his total salary breakdown:

$1,276,923      Base salary

$4,006,080       Bonus and nonequity incentive comp.

Total CASH compensation comp of $5,283,003

 

$8,699,024       Stock award value

$187,545          Total other

 

$14,169,572  Total

 

In 2020, the company he is in charge of, lost what? about $3,500,000,000? Don't embarrass yourself by saying it wasn't his fault. If you really believe it, then he shouldn't get credit for the record year in 2019. You can't accept the credit for the good and deny any blame for when thing go bad.  When you are CEO and Chairman of the Board, the "buck stops here".

The numbers were obtained by using Google and the descriptions are the way it was listed.

[billslowsky]

LOL

 

 

 

[Iamcruzin]

I can't wait until posts on CC return to deck plans instead of pie charts, graphs and financial statements.

[Seville2Cabo]

24 minutes ago, billslowsky said:

LOL

 

 

 

I haven’t looked it up but I assume the non equity compensation was based on 2019 objectives and paid in 2020 - at least that is how ours worked.

[grandgeezer]

3 hours ago, Seville2Cabo said:

I haven’t looked it up but I assume the non equity compensation was based on 2019 objectives and paid in 2020 - at least that is how ours worked.

According to your chart, he was paid over $12,000,000 total compensation in 2020, and the line lost roughly $3,500,000,000, how does that work out? 

I worked for a company that had a bonus payout deal. It started out that if the company didn't make their profit plan nobody got one. If it did then it was calculated off the individuals performance based on goals agreed upon between you and your manager. 

[Biker19]

3 hours ago, grandgeezer said:

According to your chart, he was paid over $12,000,000 total compensation in 2020, and the line lost roughly $3,500,000,000, how does that work out? 

Obviously, RCCL has a different compensation scheme than the company you worked for.

[Seville2Cabo]

3 hours ago, grandgeezer said:

According to your chart, he was paid over $12,000,000 total compensation in 2020, and the line lost roughly $3,500,000,000, how does that work out? 

I worked for a company that had a bonus payout deal. It started out that if the company didn't make their profit plan nobody got one. If it did then it was calculated off the individuals performance based on goals agreed upon between you and your manager. 

But your bonus was paid in the following year.  Maybe wait and see what his 2020 bonus was.  It would be paid in 2021 and go toward his 2021 compensation.    

[ReneeFLL]

On 4/23/2021 at 11:45 AM, livingonthebeach said:

 

Putting things further into context, MLB top players lost nearly 80% of their compensation during the pandemic.  Baseball players' careers, like most careers in sports, are very short-lived, in contrast to CEOs of major corporations.  Case in point:  Fain has been CEO of RCG since 1988 -- that's 33 years.  I don't know of any athlete that has played that long for megabucks. 

 

As the OP of this thread and a Royal stockholder, I feel my concern was justified.  The execs overall compensation at RCG  did go down in 2020 and I was pleased they were at least trying to be fiscally responsible, albeit not in line with the loss of revenue. 

 

No one is spewing venom on anyone, just pointing out facts, whether we agree with them or not, there is no reason to attack the thread nor the posters who differ in opinion. 

MLB players chose that job just like Fain and others chose theirs. For many in the sports field it’s a way out of poverty. I don’t begrudge anyone who has made it to the top or at least up there regardless of if they worked for it or inherited it. There will always be someone richer than me and someone poorer than me, that’s just how it is.

 

I can’t even begin to imagine the stress levels they have. Keeping a company out of bankruptcy has got to be hard and on top of that dealing with covid which they have absolutely no control over. 

 

 

 

[livingonthebeach]

2 minutes ago, ReneeFLL said:

MLB players chose that job just like Fain and others chose theirs. For many in the sports field it’s a way out of poverty. I don’t begrudge anyone who has made it to the top or at least up there regardless of if they worked for it or inherited it. There will always be someone richer than me and someone poorer than me, that’s just how it is.

 

I can’t even begin to imagine the stress levels they have. Keeping a company out of bankruptcy has got to be hard and on top of that dealing with covid which they have absolutely no control over. 

 

There are certainly a lot of hurdles to overcome for any company head during in these times, (covid related consumer goods companies excluded), but trivial CEO pay cuts (in comparison to total compensation) don't do much for a company's bottom line or its stockholders. Unfortunately, the actual human toll and lost lives, as well as the economic hardships are falling on the lowest paid people.

[Biker19]

RCCL executives seem to be doing well for a company that hasn't made a profit in 2+ years.

 

Michael Bayley, president and CEO of Royal Caribbean International, was the highest compensated executive at Royal Caribbean Group in 2021.

His package was valued at $17.55m, higher than the $15.81m of Royal Caribbean Group Chairman/CEO Richard Fain.

$10m jump in Bayley's stock awards

Bayley's compensation — which totaled $7.43m in 2020 — was buoyed by a $10m increase in time- and performance-based stock awards, to $14.99m. His salary was $1m and he received a $1.4m bonus. 'Other compensation' was $132,217, including an auto lease, life insurance, a retirement plan and further perks.

 

Fain's $15.81m compensation rose from $12.08m in 2020. (He remains chairman but stepped down as CEO at the end of 2021, succeeded by Jason Liberty.) Fain's 2021 salary was $1.3m. The value of his 2021 stock awards was $11.25m, close to the $11.17m in 2020. 'Other compensation' was $179,986.

Jason Liberty

Liberty, who was EVP and CFO in 2021, had compensation valued at $13.03m, up from $5.65m in 2020. Like Bayley, he benefited from a big jump in the value of stock awards, which rose to $10.5m from $3.23m in 2020. His salary was $950,000, and he received a $1.37m bonus and $118,660 in 'other compensation.'

Lisa Lutoff-Perlo

2021 compensation for Lutoff-Perlo, president and CEO, Celebrity Cruises, increased to nearly $10.42m, up from $4.75m. Her stock awards were worth $8.25m, up from $2.72m in 2020. Lutoff-Perlo's salary was $820,000 and she received a $1.06m bonus. 'Other compensation' was $151,810.

 

Bayley's 2021 compensation topped Fain's at Royal Caribbean (seatrade-cruise.com)

[Mapleleafforever]

Nothing like a good executive compensation thread to start the day. 

[Saab4444]

Very strange in times when a company still does not make money.

[Tree_skier]

I find it very strange that people think, because of a once in a lifetime pandemic limiting profitability, that somehow CEOs shouldn’t be well compensated for the expertise they bring to the corporation.

 

That they survived and will continue to thrive in the future is evidence that the compensation was money well spent. There was no industry that was hit harder than the cruise industry. They received no government money, They had to fight past a government organization that was determined to bankrupt them, and then reinvent their entire business model to conform to almost impossible new regulations.

 

I think that perhaps some of them might be underpaid.

[rudeney]

I agree with @Tree_skier.  Another thing to consider is that 85% of Bayley's compensation is in "stock awards".  Some of that might be actual stock, or it might be options.  If it's options, then he has to spend money to buy the stock to see any gains in value.  If it's actual stock, then he would never be able to sell it and get that money back.  If he were to sell just 1% of stock he owns, it would tank the value because analysts would "assume" that something is wrong.