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When
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| | | Thursday, June 18, 2020* at 9:00 a.m. (Eastern time) | | ||||||||
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Where
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| | | Pullman Miami* 5800 Blue Lagoon Drive Miami, Florida 33126 |
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Items of
Business |
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Proposal 1
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Elect the following director nominees to serve as Class I directors on our board of directors for the terms described in the attached Proxy Statement
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David M. Abrams
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John W. Chidsey
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Russell W. Galbut
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Proposal 2
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| | | Approval, on a non-binding, advisory basis, of the compensation of our named executive officers (“Say-on-Pay Vote”) | | ||||||||
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Proposal 3
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| | | Approval, on a non-binding, advisory basis, of the frequency of future Say-on-Pay Votes | | ||||||||
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Proposal 4
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| | | Ratification of the appointment of PricewaterhouseCoopers LLP (“PwC”) as our independent registered public accounting firm for the year ending December 31, 2020 and the determination of PwC’s remuneration by our Audit Committee | | ||||||||
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Additional Items
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Receive the audited financial statements (together with the auditor’s report) for the year ended December 31, 2019 pursuant to the Bermuda Companies Act 1981, as amended, and our bye-laws
Consider any other business which may properly come before the 2020 Annual General Meeting or any postponement or adjournment
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Attending the
Annual General Meeting |
| | | You will be asked to provide photo identification and appropriate proof of ownership to attend the meeting. You can find more information under “About the Annual General Meeting and Voting” in the accompanying Proxy Statement. | | ||||||||
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Who Can Vote
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| | | Holders of each NCLH ordinary share at the close of business on April 1, 2020 | |
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How to Vote in Advance
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Your vote is important. Please vote as
soon as possible by one of the methods shown below. Be sure to have your proxy card, voting instruction form or Notice of Internet Availability of Proxy Materials in hand: |
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By telephone — You can vote your shares by calling the number provided in your proxy card or voting instruction form
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By Internet — You can vote your shares online at www.proxyvote.com
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By mail — Complete, sign, date and return your proxy card or voting instruction form in the postage-paid envelope provided
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| PROXY SUMMARY | | | | |
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| PROPOSAL 1 — ELECTION OF DIRECTORS | | | | |
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| CORPORATE GOVERNANCE | | | | |
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| DIRECTOR COMPENSATION | | | | |
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| PROPOSAL 2 — ADVISORY APPROVAL OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS | | | | |
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| EXECUTIVE COMPENSATION | | | | |
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| COMPENSATION COMMITTEE REPORT | | | | |
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| EXECUTIVE COMPENSATION TABLES | | | | |
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| PROPOSAL 3 — ADVISORY APPROVAL OF THE FREQUENCY OF FUTURE SAY-ON-PAY VOTE | | | | |
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| PROPOSAL 4 — RATIFICATION OF THE APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | | | |
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| AUDIT COMMITTEE REPORT | | | | |
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| SHARE OWNERSHIP INFORMATION | | | | |
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| CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | | | | |
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| ABOUT THE ANNUAL GENERAL MEETING AND VOTING | | | | |
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| APPENDIX A — NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | | | |
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DATE AND TIME
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PLACE
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RECORD DATE
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Thursday, June 18, 2020*
9:00 a.m. (Eastern Time) |
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Pullman Miami*
5800 Blue Lagoon Drive Miami, Florida 33126 |
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April 1, 2020
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BOARD RECOMMENDATION
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Election of three Class I directors
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FOR
each director nominee
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Approval, on a non-binding, advisory basis, of the compensation of our named executive officers (“Say-on-Pay Vote”)
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FOR
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Approval on a non-binding, advisory basis, of the frequency of our future Say-On-Pay Votes
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1 YEAR
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Ratification of the appointment of PricewaterhouseCoopers LLP (“PwC”) as our independent registered public accounting firm for the year ending December 31, 2020 and the determination of PwC’s remuneration by our Audit Committee
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FOR
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Class I (Term to Expire in 2023)
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Name
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Age
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Director
Since |
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Independent
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Occupation
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Committee
Memberships |
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Other Current
Public Company Boards |
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David M. Abrams
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53
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2014
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Chief Investment Officer, Harris Blitzer Sports and Entertainment
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•
Nominating & Governance (Chair)
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John W. Chidsey
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57
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2013
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Chief Executive Officer, Subway Restaurants
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•
Compensation (Chair)
•
Audit
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•
Encompass Health Corporation
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Russell W. Galbut (Chairperson)
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67
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2015
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Managing Principal, Crescent Heights
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•
Compensation
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Class II (Term Expires in 2021)
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Name
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Age
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Director
Since |
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Independent
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Occupation
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Committee
Memberships |
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Other Current
Public Company Boards |
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Adam M. Aron
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65
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2008
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Chief Executive Officer and President, AMC Entertainment Holdings, Inc.
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•
AMC Entertainment Holdings, Inc.
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Stella David
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57
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2017
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Former Chief Executive Officer, William Grant & Sons Limited
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•
Nominating & Governance
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TESS*
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HomeServe plc**
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Mary E. Landry
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63
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2018
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Former Rear Admiral, U.S. Coast Guard
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TESS (Chair)
•
Nominating & Governance
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Class III (Term Expires in 2022)
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Name
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Age
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Director
Since |
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Independent
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Occupation
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Committee
Memberships |
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Other Current
Public Company Boards |
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Frank J. Del Rio
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65
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2015
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President and Chief Executive Officer, Norwegian Cruise Line Holdings Ltd.
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Chad A. Leat
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64
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2015
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Former Vice Chairman of Global Banking, Citigroup Inc.
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•
Audit (Chair)
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Compensation
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Steve Martinez
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51
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2008
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Senior Partner, Private Equity and Head of Asia Pacific, Apollo
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Pamela Thomas- Graham
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56
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2018
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Founder and Chief Executive Officer, Dandelion Chandelier LLC
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•
Audit
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TESS
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The Clorox Company
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The Bank of N.T. Butterfield & Son Limited
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Peloton Interactive, Inc.
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Travel, leisure & entertainment industries
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5/10
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Executive leadership
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9/10
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Global operations & strategy
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6/10
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Financial
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6/10
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Public company
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5/10
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Maritime
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3/10
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Sales & marketing
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3/10
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| | Independent Board chairperson | | |
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Fully independent Board committees
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Focus on Board refreshment, with 3 of 10 directors appointed since January 2017
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Board is 30% female and 60% diverse
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Independent directors meet regularly in executive session
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All directors attended at least 75% of meetings held
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Shareholder ability to call special meetings
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Shareholder ability to act by written consent
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Majority voting for directors
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Robust Board risk oversight process
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Annual Board and committee self-evaluations
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Annual vote on named executive officer compensation
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Share ownership policy for directors and executive officers
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Comprehensive clawback policy
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Prohibition on hedging and short sales of NCLH securities by directors and senior officers
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Prohibition on pledging of NCLH shares by directors and senior officers
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No poison pill
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WHAT WE DO
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WHAT WE DON’T DO
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Annual cash performance incentives earned based on pre-established targets for entity-wide financial performance
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Tax “gross-up” provisions
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Increased percentage of our President and Chief Executive Officer’s annual equity awards that are performance-based to 75% in 2019 from 60% in 2018
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Allow officers and directors to hedge, short-sell or pledge
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All named executive officers (“NEOs”) received a combination of performance-based and time-based annual equity awards
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“Single-trigger” change in control payments or benefits
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Increased 2019 PSU Adjusted ROIC performance period to two years
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Reprice stock options without shareholder approval
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Share ownership policy
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Automatic base salary increases for NEOs
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IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS
FOR THE ANNUAL GENERAL MEETING TO BE HELD ON JUNE 18, 2020 |
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The Notice of Annual General Meeting of Shareholders, this Proxy Statement and our 2019 Annual Report are available on our website at www.nclhltdinvestor.com. The information that appears on our website is not part of, and is not incorporated by reference into, this Proxy Statement. You can also view these materials at www.proxyvote.com by using the 16-digit control number provided on your proxy card or Notice of Internet Availability of Proxy Materials (the “Notice of Internet Availability”).
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As permitted by the U.S. Securities and Exchange Commission (“SEC”), we are furnishing proxy materials to our shareholders primarily over the Internet. We believe that this process expedites shareholders’ receipt of these materials, lowers the costs of our Annual General Meeting and reduces the environmental impact of mailing printed copies.
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We are mailing to each of our shareholders, other than those who previously requested electronic or paper delivery, a Notice of Internet Availability containing instructions on how to access and review the proxy materials, including the Notice of Annual General Meeting of Shareholders, this Proxy Statement and our 2019 Annual Report, on the Internet. The Notice of Internet Availability also contains instructions on how to receive a paper copy of the proxy materials and a proxy card or voting instruction form. If you received a Notice of Internet Availability by mail or our proxy materials by e-mail, you will not receive a printed copy of the proxy materials unless you request one. If you received paper copies of our proxy materials, you may also view these materials on our website at www.nclhltdinvestor.com or at www.proxyvote.com.
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Class I Director Nominees (Term to Expire in 2023)
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DAVID M. ABRAMS
Chief Investment Officer, Harris Blitzer Sports and Entertainment
Age: 53
Director Since: April 2014
Independent Director Committees:
•
Nominating & Governance (Chair)
Favorite Ship:
Norwegian Joy
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Mr. Abrams shares over 20 years of experience in sports and entertainment, private equity, finance and investment banking with our Board. His expertise includes developing new businesses, financial strategy and the credit markets.
Experience
•
Chief Investment Officer, Harris Blitzer Sports and Entertainment, which owns the Philadelphia 76ers, the New Jersey Devils, the Prudential Center and esports franchise, Dignitas: November 2018 – Present
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Senior Managing Director, Cerberus European Capital Advisors, LLP, a private investment firm: January 2016 to March 2018
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Partner, Apollo, and founder of the Apollo European Principal Finance Fund franchise, which he ran from 2007 until 2015
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Controlling shareholder of Keemotion SPRL, a leading sports technology company with operations in the U.S. and Europe: January 2015 – Present
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Co-Managing Partner of the Scranton/Wilkes-Barre RailRiders, the AAA-Affiliate of the New York Yankees: November 2014 – Present
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Managing Director, Leveraged Finance Group, Credit Suisse, based in London and New York: 1996 through 2007
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Founder and Head of the Specialty Finance Investment business, Credit Suisse, which included investing in non-performing loans portfolios and distressed assets: 2004 through 2007
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Founding member and Co-Head, Global Distressed Sales and Trading Group, Credit Suisse (and its predecessor Donaldson, Lufkin & Jenrette, Inc.): 1996 through 2004
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Associate/Vice President, Argosy Group, a boutique corporate restructuring firm
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Analyst, Investment Banking Division, Bear Stearns & Co.: 1989
Current Private Company Boards
•
Keemotion SPRL
Education
•
B.S. in Economics, Wharton School of Business, University of Pennsylvania
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JOHN W. CHIDSEY
Chief Executive Officer, Subway Restaurants
Age: 57
Director Since: April 2013
Independent Director Committees:
•
Compensation (Chair)
•
Audit
Favorite Ship:
Norwegian Getaway
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Mr. Chidsey contributes an in-depth understanding of the opportunities and demands of running a multi-national corporation to our Board. Through his legal, finance and accounting background and his leadership roles at Subway Restaurants, Burger King and Cendant, he developed skills that provide insight into the unique logistical demands of the cruise industry. His experience with public company leadership roles helps him align our Board with what our shareholders value most.
Experience
•
Subway Restaurants, Chief Executive Officer: November 2019 – Present
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Burger King Holdings, Inc., Chief Executive Officer: April 2006 – October 2010
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Burger King Holdings, Inc., President and Chief Financial Officer: September 2005 – April 2006
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Burger King Holdings, Inc., President, North America: June 2004 – September 2005
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Burger King Holdings, Inc., Executive Vice President, Chief Administrative and Financial Officer: March 2004 – June 2004
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Cendant: Chairman and Chief Executive Officer of the Vehicle Services Division, a $5.9 billion division, which included Avis Rent A Car, Budget Rent A Car Systems, PHH and Wright Express, and the Financial Services Division, a $1.4 billion division, which included Jackson Hewitt; Senior Vice President, Preferred Alliances: 1996 – 2003
•
Pepsi (beginning 1992): various senior leadership roles including Director of Finance, Pepsi-Cola Eastern Europe; Chief Financial Officer, PepsiCo World Trading Co., Inc.
Current Public Company Boards
•
Encompass Health Corporation (formerly HealthSouth) (NYSE: EHC)
Past Public Company Boards
•
Burger King Holdings, Inc., Chairman of the Board
•
Brinker International Inc.
Education
•
M.B.A. in Finance and Accounting, Emory University
•
J.D., Emory University
•
B.A., Davidson College
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RUSSELL W. GALBUT
Managing Principal, Crescent Heights
Age: 67
Chairperson of our Board
Director Since: November 2015
Independent Director Committees:
•
Compensation
Favorite Ship:
Norwegian Encore
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For over 34 years, Mr. Galbut has been active in the urban mixed-use real estate sector, which has included fostering relationships with complementary retail, hospitality, and food and beverage brands. Mr. Galbut provides our Board with unique insights into complex development projects such as our new facility at PortMiami, private island destinations, port development projects and design and hotel operations for our newbuild ships.
Experience
•
Managing Principal, Crescent Heights, a leading urban real estate firm, specializing in the development, ownership, and operation of architecturally distinctive, mixed-use high-rises in major cities across the United States: 1989 – Present
Current Academic Boards
•
The Dean’s Advisory Board, Cornell University School of Hotel Administration
Past Private Company Boards
•
Prestige (prior to the Acquisition)
Education
•
J.D., University of Miami School of Law
•
Degree in Hotel Administration, Cornell University School of Hotel Administration
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OUR BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE
“FOR” THE ELECTION OF EACH OF THE NOMINEES FOR DIRECTOR NAMED ABOVE.
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Class II (Term Expires in 2021)
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ADAM M. ARON
Chief Executive Officer and President, AMC Entertainment Holdings, Inc.
Age: 65
Director Since: January 2008
Favorite Ship:
Marina
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Mr. Aron has 40 years of experience managing companies operating in the travel, leisure and entertainment industries. He provides our Board with, among other skills, valuable insight and perspective on the travel and leisure operations of our Company.
Experience
•
Chief Executive Officer and President, AMC Entertainment Holdings, Inc., a theatrical exhibition company: January 2016 – Present
•
Chief Executive Officer, Starwood Hotels and Resorts Worldwide, Inc., on an interim basis: February 2015 – December 2015
•
Chairman and Chief Executive Officer, World Leisure Partners, Inc., a personal consultancy for travel and tourism, high-end real estate development and professional sports: since 2006
•
Chief Executive Officer, Philadelphia 76ers: 2011 to 2013
•
Chief Executive Officer, Vail Resorts, Inc.: 1996 to 2006
•
President and Chief Executive Officer, Norwegian Cruise Line: 1993 to 1996
•
Senior Vice President, Marketing, United Airlines: 1990 to 1993
•
Senior Vice President, Marketing, Hyatt Hotels Corporation: 1987 to 1990
Current Public Company Boards
•
AMC Entertainment Holdings, Inc. (NYSE: AMC)
Past Public Company Boards
•
Starwood Hotels and Resorts Worldwide, Inc.: August 2006 – December 2015
•
Vail Resorts, Inc., Chairman: 1996 – 2006
Current Memberships
•
The Council on Foreign Relations
Past Private Company Boards and Organizations
•
Prestige (prior to the Acquisition)
•
Young Presidents’ Organization
•
Business Executives for National Security
Education
•
M.B.A., Harvard Business School
•
B.A., Harvard College
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|
STELLA DAVID
Former Chief Executive Officer, William Grant & Sons Limited
Age: 57
Director Since: January 2017
Independent Director Committees:
•
Nominating & Governance
•
TESS
Favorite Ship:
Seven Seas Splendor
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Ms. David has extensive experience running multi-national corporations and has significant expertise in marketing and branding. As the leader of William Grant & Sons Limited, she was responsible for the significant growth of the business, in particular their premium and luxury brands, and for leading the company’s expansion into new markets. In addition, Ms. David also has extensive experience as a director and is able to share the knowledge she has gained regarding corporate governance and risk management with our Board.
Experience
•
Interim Chief Executive Officer, C&J Clark Limited, an international shoe manufacturer and retailer: June 2018 – April 2019
•
Chief Executive Officer, William Grant & Sons Limited, an international spirits company: August 2009 until March 2016
•
Various positions at Bacardi Ltd. over a fifteen-year period, including Senior Vice President and Chief Marketing Officer: 2005 through 2009; and Chief Executive Officer of the U.K., Irish, Dutch and African business: 1999 to 2004
Current Public Company Boards
•
HomeServe Plc: November 2010 – Present (FTSE listed)
Current Private Company Boards
•
Bacardi Limited: June 2016 – Present
•
C&J Clark Limited: March 2012 – Present
Past Company Boards
•
Nationwide Building Society: 2003 to 2010
Education
•
Degree in Engineering, Cambridge University
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MARY E. LANDRY
Former U.S. Coast Guard Rear Admiral
Age: 63
Director Since: June 2018
Independent Director Committees:
•
TESS (Chair)
•
Nominating & Governance
Favorite Ship:
Norwegian Epic
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Ms. Landry developed a strong background in marine safety, risk management and government policy over the course of her 35-year career with the U.S. government, including service on the White House National Security Council and active duty in the U.S. Coast Guard. She brings expertise regarding the maritime operations of our Company and deep insight into our risk mitigation, preparedness, resilience and cybersecurity strategies to our Board.
Experience
•
White House National Security Council, Special Assistant to the President and Senior Director for Resilience Policy: 2013 – 2014
•
Various active duty positions with the U.S. Coast Guard, including: Director, Incident Management Preparedness Policy: 2012 – 2015; Commander, Eighth Coast Guard District: 2009 – 2011, where she oversaw operations for a region including 26 states with over 10,000 active, reserve, civilian, and auxiliary personnel under her command; Director of Governmental and Public Affairs: 2007 – 2009; various tours from 1980 – 2007, which culminated in her advancement to Rear Admiral
Current Industry Boards
•
United States Automobile Association (USAA)
•
SCORE Association
Education
•
National Security Fellowship, Harvard University
•
M.A. in Marine Affairs, University of Rhode Island
•
M.A. in Management, Webster University
•
B.A. in English, University of Buffalo
•
National Association of Corporate Directors, Board Leadership Fellow
•
Holds the CERT Certificate in Cybersecurity Oversight
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Class III (Term Expires in 2022)
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FRANK J. DEL RIO
President and Chief Executive Officer of our Company
Age: 65
Director Since: August 2015
Favorite Ship:
Seven Seas Splendor
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| |
Mr. Del Rio brings his extensive knowledge of the cruise industry, entrepreneurial spirit and command of the day-to-day operations of our Company to our Board. He has served as an executive in the cruise industry for 27 years and was responsible for the successful integration of our Company and Prestige. Under his leadership, our Company has grown to a fleet of 28 ships and has achieved significant milestones including the successful introduction of seven new vessels to our fleet and the introduction of our latest private island destination, Harvest Caye, Belize. During his time at the helm of our Company, we also ordered additional ships for our fleet, bringing the total on order to nine, and broke ground on a new, dedicated terminal for our Company at PortMiami. Mr. Del Rio was appointed to the Board pursuant to his employment agreement and provides a vital link between our Board and our management team.
Experience
•
President and Chief Executive Officer, NCLH: January 2015 – Present
•
Founder, Oceania Cruises and Chief Executive Officer, Prestige (or its predecessor): October 2002 – September 2016
•
Co-Chief Executive Officer, Executive Vice President and Chief Financial Officer, Renaissance Cruises: 1993 to April 2001
Education
•
B.S. in Accounting, University of Florida
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CHAD A. LEAT
Former Vice Chairman of Global Banking, Citigroup Inc.
Age: 64
Director Since: November 2015
Independent Director Committees:
•
Audit (Chair)
•
Compensation
Favorite Ship:
Seven Seas Splendor
|
| |
Mr. Leat brings to our Board financial and strategic expertise from his nearly 30-year career on Wall Street in capital markets and banking. His significant tenure as an executive with global responsibilities and related risk-oversight responsibilities informs his work as the Chairperson of our Audit Committee. His extensive knowledge of finance provides him with unique insights to our Company’s strategic planning and finances. Additionally, his position on other audit committees enhances his understanding of accounting, internal controls and procedures for financial reporting, risk management oversight and other audit committee functions.
Experience
•
Retired in 2013 as Vice Chairman of Global Investment Banking, Citigroup Inc.
•
Global Head of Loans and Leveraged Finance, Citigroup Inc.: 1998 until 2005
•
Joined Salomon Brothers in 1997 as a partner in High Yield Capital Markets, which became Citigroup Inc. in 1998
•
Began his career on Wall Street at The Chase Manhattan Corporation in its Capital Markets Group in 1985 where he ultimately became the head of its Syndications, Structured Sales and Loan Trading businesses
Past Public Company Boards
•
Chairman of the Audit Committee, TPG Pace Holdings Corp. (now Accel Entertainment, Inc.)
•
Chairman of the Audit Committee, TPG Pace Energy Holdings Corp. (now Magnolia Oil & Gas Corporation)
•
Chairman of the Audit Committee, Pace Holdings Corp.
•
Global Indemnity plc
Current Other Company Boards
•
Chairman, MidCap Financial, PLC, a middle-market direct commercial lending business
•
Chairman, J. Crew Operating Corp.
•
Supervisory Board member, Hamburg Commercial Bank AG, a German commercial bank
Past Private Company Boards
•
Chairman of the Audit Committee, BAWAG P.S.K.
•
Chairman, HealthEngine LLC
Education
•
B.S., University of Kansas
|
|
|
STEVE MARTINEZ
Senior Partner, Private Equity and Head of Asia Pacific, Apollo
Age: 51
Director Since: January 2008
Favorite Ship:
Norwegian Epic
|
| |
Mr. Martinez provides our Board with insights gained throughout his over 20-year career analyzing and investing in public and private companies. Through his tenure on our Board and participation in the diligence of Apollo’s prior investments in both our Company and Prestige, Mr. Martinez has gained a significant understanding of the cruise industry and the fundamentals of our operations. He also has significant experience serving on other boards.
Experience
•
Senior Partner, Private Equity and Head of Asia Pacific, Apollo, one of the world’s largest alternative investment managers: 2000 – Present
•
Member of the Mergers and Acquisitions department, Goldman, Sachs & Co., with responsibilities in merger structure negotiation and financing
•
Bain & Company Tokyo, advised U.S. corporations on corporate strategies in Japan
Past Public Company Boards
•
Rexnord Corporation
•
Hughes Telematics
•
Goodman Global
•
Allied Waste Industries
•
Hayes-Lemmerz International
Current Private Company Boards
•
Ventia Services Group Pty Limited, an Australian operations and facilities management services company
•
Clix Capital, an India-based financial services firm
•
Veritable Maritime, an owner of crude oil tankers
Past Company Boards
•
Nine Entertainment Corporation, an Australia-based television broadcast and media company
•
Jacuzzi Brands
•
Prestige (prior to the Acquisition)
Education
•
M.B.A., Harvard Business School
•
B.A., University of Pennsylvania
•
B.S., Wharton School of Business, University of Pennsylvania
|
|
|
PAMELA THOMAS-GRAHAM
Founder and Chief Executive Officer, Dandelion Chandelier LLC
Age: 56
Director Since: April 2018
Independent Director Committees:
•
Audit
•
TESS
Favorite Ship:
Riviera
|
| |
Ms. Thomas-Graham provides our Board with experience cultivated over 20 years of serving in executive leadership roles. She also offers expertise in marketing, brand management and human capital development. From her significant tenure as a public company director, she is also able to share with our Board insights gained from her experience overseeing corporate governance, financial reporting and controls, risk management, business strategies and operations of other companies.
Experience
•
Founder and Chief Executive Officer, Dandelion Chandelier LLC, a private digital media enterprise focused on global luxury: August 2016 – Present
•
Chair, New Markets, Credit Suisse Group AG, a global financial services company: October 2015 to June 2016
•
Chief Marketing and Talent Officer, Head of Private Banking & Wealth Management New Markets, and member of the Executive Board, Credit Suisse: January 2010 to October 2015
•
Managing director in the private equity group at Angelo, Gordon & Co.: 2008 to 2009
•
Group President, Liz Claiborne, Inc.: 2005 to 2007
•
Chairman, President, and Chief Executive Officer, CNBC: 2001 to 2005
•
Executive Vice President, NBCUniversal
•
President and Chief Executive Officer, CNBC.com
•
Began her career at McKinsey & Company, a global consulting firm, in 1989, and became the firm’s first African-American female partner in 1995
Current Public Company Boards
•
The Clorox Company (NYSE: CLX), Lead Independent Director
•
The Bank of N.T. Butterfield & Son Limited (NYSE: NTB)
•
Peloton Interactive, Inc. (Nasdaq: PTON)
Current Private Company Boards
•
Compass
Education
•
J.D., Harvard University
•
M.B.A., Harvard University
•
B.A. in Economics, Harvard University
|
|
|
Chairperson: Russell W. Galbut
Number of Board Meetings in 2019
Board and Committee Meeting Attendance Annual General Meeting Attendance |
| |
Our Board believes its current leadership structure best serves the objectives of our Board’s oversight of management, our Board’s ability to carry out its roles and responsibilities on behalf of our shareholders, and our overall corporate governance. Our Board and each of its committees are currently led by independent directors, with our President and Chief Executive Officer separately serving as a member of our Board. Our Board believes that participation of our President and Chief Executive Officer as a director, while keeping the roles of President and Chief Executive Officer and Chairperson of the Board separate, provides the proper balance between independence and management participation at this time. By having a separate Chairperson of the Board, we maintain an independent perspective on our business affairs, and at the same time, through the President and Chief Executive Officer’s participation as a director, our Board maintains a strong link between management and our Board. We believe this leadership structure promotes clear communication, enhances strategic planning, and improves implementation of corporate strategies. Our current leadership structure is:
|
| |||
| | | ||||||
|
•
Frank J. Del Rio
|
| | President, Chief Executive Officer and Director | | |||
|
•
Russell W. Galbut*
|
| | Chairperson of the Board | | |||
|
•
Chad A. Leat*
|
| | Chairperson of the Audit Committee | | |||
|
•
John W. Chidsey*
|
| | Chairperson of the Compensation Committee | | |||
|
•
David M. Abrams*
|
| |
Chairperson of the Nominating and Governance Committee
|
| |||
|
•
Mary E. Landry*
|
| | Chairperson of the TESS Committee | | |||
|
*
Independent Director
Our Board periodically reviews the leadership structure of our Board and may make changes in the future.
|
|
|
Chairperson: Chad A. Leat
Number of
Meetings in 2019
Other Committee Members
•
Chidsey
•
Thomas-Graham
|
| |
Audit Committee
Primary Responsibilities
The principal duties and responsibilities of our Audit Committee are to:
•
oversee and monitor the integrity of our financial statements;
•
monitor our financial reporting process and internal control system;
•
appoint our independent registered public accounting firm from time to time, determine its compensation and other terms of engagement and oversee its work;
•
oversee the performance of our Internal Audit function; and
•
oversee our compliance with legal, ethical and regulatory matters.
Our Audit Committee has the power to investigate any matter brought to its attention within the scope of its duties. It also has the authority to retain counsel and advisors to fulfill its responsibilities and duties.
Independence
All Audit Committee members are considered independent as defined in Rule 10A-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and under applicable rules of the New York Stock Exchange (the “NYSE”).
Audit Committee Financial Experts
Our Board has determined that all of our Audit Committee members qualify as audit committee financial experts as defined in Item 407(d)(5) of Regulation S-K. Their biographies are available under “Proposal 1 — Election of Directors.”
|
|
|
Chairperson: John W. Chidsey
Number of Meetings in 2019
Other Committee Members
•
Galbut
•
Leat
|
| |
Compensation Committee
Primary Responsibilities
The principal duties and responsibilities of our Compensation Committee are to:
•
provide oversight of the planning, design and implementation of our overall compensation and benefits strategies and to approve (or recommend that our Board approve) changes to our executive compensation plans, incentive compensation plans, equity-based plans and benefits plans;
•
establish and administer incentive compensation, benefit and equity-related plans;
•
establish corporate goals, objectives, salaries, incentives and other forms of compensation for our President and Chief Executive Officer and our other executive officers;
•
provide oversight of and review the performance of our President and Chief Executive Officer and other executive officers; and
•
review and make recommendations to our Board with respect to the compensation and benefits of our non-employee directors.
Our Compensation Committee is also responsible for reviewing the “Compensation Discussion and Analysis” and for preparing the Compensation Committee Report included in this Proxy Statement.
Our Compensation Committee considers recommendations of our President and Chief Executive Officer in reviewing and determining the compensation, including equity awards, of our other executive officers. In addition, our Compensation Committee has the power to appoint and delegate matters to a subcommittee comprised of at least one member of our Compensation Committee. Our Compensation Committee does not currently intend to delegate any of its responsibilities to a subcommittee.
Our Compensation Committee is authorized to retain compensation consultants to assist in the review and analysis of the compensation of our executive officers. As further described under “Executive Compensation — Compensation Discussion and Analysis”, our Compensation Committee engaged Frederic W. Cook & Co., Inc. (“FW Cook”) to advise it regarding the amount and types of compensation that we provide to our executive officers, how our compensation practices compared to the compensation practices of other companies and to advise on matters related to our incentive compensation structures. Our Compensation Committee has assessed the independence of FW Cook and concluded that its engagement of FW Cook did not raise any conflict of interest.
Independence
All Compensation Committee members are considered independent under applicable NYSE rules and satisfy the additional independence requirements specific to Compensation Committee membership under the NYSE listing standards.
|
|
|
Chairperson: David M. Abrams
Number of Meetings in 2019
Other Committee Members
•
David
•
Landry
|
| |
Nominating and Governance Committee
Primary Responsibilities
The principal duties and responsibilities of our Nominating and Governance Committee are to:
•
make recommendations to our Board regarding the size and composition of our Board and its committees, establish criteria for our Board and committee membership and recommend to our Board qualified individuals to become members of our Board;
•
advise and make recommendations to our Board regarding proposals submitted by our shareholders;
•
oversee the evaluation of our Board, its committees and management;
•
make recommendations to our Board regarding management succession;
•
make recommendations to our Board regarding our Board’s governance matters and practices; and
•
oversee our political spending and lobbying policies and practices.
Independence
All Nominating and Governance Committee members are considered independent under applicable NYSE rules.
|
|
|
Chairperson: Mary E. Landry
Number of Meetings in 2019
Other Committee Members
•
David
•
Thomas-Graham
|
| |
Technology, Environmental, Safety and Security (“TESS”) Committee
Primary Responsibilities
The principal duties and responsibilities of our TESS Committee are to:
•
oversee matters, initiatives, reporting and public communications related to corporate social responsibility and sustainability;
•
oversee our programs and policies related to technology and innovation, cybersecurity, data protection and privacy; and
•
oversee our policies regarding safety, security, environmental and climate-related matters.
Independence
All TESS Committee members are considered independent under applicable NYSE rules.
|
|
|
Type of Retainer or Fee
|
| |
Amount
|
| |||
| Annual Retainer | | | | $ | 100,000 | | |
| Out-of-Country Meeting Attendance | | | | $ | 10,000(1) | | |
| Chairperson of the Board | | | | $ | 50,000 | | |
| Chairperson of the Audit Committee | | | | $ | 30,000 | | |
| Chairperson of the Compensation Committee | | | | $ | 20,000 | | |
| Chairperson of the Nominating and Governance Committee | | | | $ | 20,000 | | |
| Chairperson of the TESS Committee | | | | $ | 20,000 | | |
| Audit Committee Member Retainer(2) | | | | $ | 15,000 | | |
|
Name(1)
|
| |
Fees
Earned or Paid in Cash ($) |
| |
Stock
Awards ($)(2)(3) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||
| David M. Abrams(4) | | | | | 140,000 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
279,981
|
|
| Adam M. Aron | | | | | 130,000 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
269,981
|
|
| John W. Chidsey(4) | | | | | 165,000 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
304,981
|
|
| Stella David(4) | | | | | 100,000 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
239,981
|
|
| Russell W. Galbut(4) | | | | | 180,000 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
319,981
|
|
| Mary E. Landry | | | | | 147,722 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
287,703
|
|
| Chad A. Leat | | | | | 160,000 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
299,981
|
|
| Steve Martinez | | | | | — | | | |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
|
| Pamela Thomas-Graham | | | | | 135,000 | | | |
139,981
|
| |
—
|
| |
—
|
| |
—
|
| |
—
|
| |
274,981
|
|
|
Name
|
| |
Unvested
RSUs |
| |||
| David M. Abrams | | | | | 5,663 | | |
| Adam M. Aron | | | | | 3,303 | | |
| John W. Chidsey | | | | | 5,663 | | |
| Stella David | | | | | 5,663 | | |
| Russell W. Galbut | | | | | 5,663 | | |
| Mary E. Landry | | | | | 3,303 | | |
| Chad A. Leat | | | | | 3,303 | | |
| Steve Martinez | | | | | — | | |
| Pamela Thomas-Graham | | | | | 3,303 | | |
|
|
| |
OUR BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” ADVISORY APPROVAL OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENT.
|
|
| Frank J. Del Rio | | | | President and Chief Executive Officer | |
| Mark A. Kempa | | | | Executive Vice President and Chief Financial Officer | |
| Robert Binder | | | | President and Chief Executive Officer, Oceania Cruises and Vice Chairman, Oceania Cruises and Regent | |
| Jason Montague | | | | President and Chief Executive Officer, Regent | |
| Andrew Stuart | | | |
Former President and Chief Executive Officer, Norwegian (through December 2019)
|
|
|
NEO
|
| |
2018
Base Salary |
| |
2019
Base Salary |
| |||
| Frank J. Del Rio | | | | $ | 1,800,000(1) | | | |
$1,800,000
|
|
| Mark A. Kempa | | | | $ | 700,000(1) | | | |
$700,000
|
|
| Robert Binder | | | | $ | 700,000 | | | |
$700,000
|
|
| Jason Montague | | | | $ | 700,000 | | | |
$700,000
|
|
| Andrew Stuart | | | | $ | 700,000 | | | |
$700,000
|
|
|
Name
|
| |
Threshold
Adjusted EPS: $5.28(1) |
| |
Target
Adjusted EPS: $5.33 |
| |
Maximum
Adjusted EPS: $5.49(2) |
| |
Actual
|
| |
% of
Target |
|
| Frank J. Del Rio | | |
$1,800,000
(100% of base salary) |
| |
$3,600,000
(200% of base salary) |
| |
$5,400,000
(300% of base salary) |
| |
$3,600,000
|
| |
100%
|
|
| Mark A. Kempa | | |
$350,000
(50% of base salary) |
| |
$700,000
(100% of base salary) |
| |
$1,750,000
(250% of base salary) |
| |
$700,000
|
| |
100%
|
|
| Robert Binder | | |
$350,000
(50% of base salary) |
| |
$700,000
(100% of base salary) |
| |
$1,750,000
(250% of base salary) |
| |
$700,000
|
| |
100%
|
|
| Jason Montague | | |
$350,000
(50% of base salary) |
| |
$700,000
(100% of base salary) |
| |
$1,750,000
(250% of base salary) |
| |
$700,000
|
| |
100%
|
|
| Andrew Stuart | | |
$350,000
(50% of base salary) |
| |
$700,000
(100% of base salary) |
| |
$1,750,000
(250% of base salary) |
| |
$700,000
|
| |
100%
|
|
| Components of Long-Term Equity Incentive Compensation |
| |
What It Is
|
| |
Why We Use It
|
| |
2019 Weighting
|
|
| PSUs (performance share units) | | |
Opportunity to receive a specified number of shares based on achievement of performance objectives determined by our Compensation Committee.
2019 PSU awards include an additional one-year service requirement following the end of the performance period.
|
| |
Focuses our NEOs on the achievement of key financial operating objectives over a multi-year period. Adjusted EPS growth and Adjusted ROIC targets align NEOs’ interests with shareholders.
Serves as a retention incentive.
|
| |
CEO: 75% of total target equity award
Other NEOs: 33.3% of total target equity award
|
|
| RSUs (restricted share units) | | |
Right to receive a specified number of shares at the time the award vests.
Value fluctuates with the price of our ordinary shares.
Vests in annual installments over three years.
|
| |
Aligns our NEOs’ interests with those of our shareholders.
Serves as a retention incentive.
|
| |
CEO: 25% of total target equity award
Other NEOs: 66.7% of total target equity award
|
|
|
Average Adjusted EPS Growth Metric (50% of Target Units)
|
| |||||||||
| | | |
2019 – 2020 Average
Adjusted EPS Growth |
| |
Percentage of Target
Adjusted EPS Growth Units Earned |
| |||
| Below Threshold | | | | | ≤9.0% | | | |
0%
|
|
| | | | | | >9.0%(1) | | | |
0.0001%
|
|
| | | | | | 10.0% | | | |
100%
|
|
| Maximum | | | | | 11.0% | | | |
200%
|
|
|
Average Adjusted ROIC Metric (50% of Target Units)
|
| |||||||||
| | | |
2019 – 2020 Average
Adjusted ROIC |
| |
Percentage of Target
Adjusted ROIC Units Earned |
| |||
| Below Threshold | | | | | <11.2% | | | |
0%
|
|
| | | | | | 11.2%(1) | | | |
0.0001%
|
|
| | | | | | 11.4% | | | |
100%
|
|
| Maximum | | | | | 11.6% | | | |
200%
|
|
|
•
Alaska Air Group, Inc.
|
| |
•
Hilton Worldwide Holdings Inc.
|
| |
•
Royal Caribbean Cruises Ltd.
|
|
|
•
Marriott International, Inc.
|
| |
•
Hyatt Hotels Corporation
|
| |
•
Spirit Airlines, Inc.
|
|
|
•
Caesars Entertainment Corporation
|
| |
•
JetBlue Airways Corporation
|
| |
•
Wyndham Destinations, Inc.
|
|
|
•
Carnival Corporation
|
| |
•
Las Vegas Sands Corp.
|
| |
•
Wynn Resorts, Limited
|
|
|
•
Darden Restaurants, Inc.
|
| |
•
MGM Resorts International
|
| |
•
YUM! Brands, Inc.
|
|
|
•
Expedia Group, Inc.
|
| |
•
Penn National Gaming, Inc.
|
| | |
| | | | | |
|
Attract and retain top talent in a competitive market
|
| | We want to be an employer of choice for individuals with the specific skill sets and experience required for the cruise industry. | |
|
Motivate employees with clear, NCLH-level goals
|
| | We believe that clear, NCLH-level goals motivate management to work together as a team towards shared objectives. | |
|
Compensation opportunities align executives with shareholders
|
| |
We align management with shareholders by choosing NCLH incentive compensation performance metrics that we believe drive long-term value for our shareholders.
|
|
|
Position
|
| |
Value of Share Ownership*
|
|
| Chief Executive Officer | | |
5 times annual base salary
|
|
| Brand Presidents and Executive Vice Presidents | | |
3 times annual base salary
|
|
| Senior Vice Presidents | | |
1 times annual base salary
|
|
|
Name and Principal Position
|
| | |
Year
|
| | |
Salary
($) |
| | |
Bonus
($) |
| | |
Stock
Awards ($)(1) |
| | |
Option
Awards ($) |
| | |
Non-Equity
Incentive Plan Compensation ($)(2) |
| | |
All Other
Compensation ($)(3) |
| | |
Total
($) |
| ||||||||||||||||||||||||
|
Frank J. Del Rio
President and Chief Executive Officer |
| | | | | 2019 | | | | | | | 1,800,000 | | | | | | | — | | | | | | | 12,201,324 | | | | | | | — | | | | | | | 3,600,000 | | | | | | | 207,040 | | | | | | | 17,808,364 | | |
| | | 2018 | | | | | | | 1,751,507 | | | | | | | — | | | | | | | 15,235,631 | | | | | | | — | | | | | | | 5,400,000 | | | | | | | 205,923 | | | | | | | 22,593,061 | | | ||||
| | | 2017 | | | | | | | 1,500,000 | | | | | | | — | | | | | | | 3,746,411 | | | | | | | 534,308 | | | | | | | 4,500,000 | | | | | | | 213,494 | | | | | | | 10,494,213 | | | ||||
|
Mark A. Kempa
Executive Vice President and Chief Financial Officer |
| | | | | 2019 | | | | | | | 700,000 | | | | | | | — | | | | | | | 2,555,694 | | | | | | | — | | | | | | | 700,000 | | | | | | | 47,336 | | | | | | | 4,003,030 | | |
| | | | | | | 2018 | | | | | | | 655,548 | | | | | | | — | | | | | | | 751,635 | | | | | | | — | | | | | | | 1,570,171 | | | | | | | 45,576 | | | | | | | 3,022,930 | | |
|
Robert Binder
President and Chief Executive Officer, Oceania Cruises, Vice Chairman, Oceania Cruises and Regent |
| | | | | 2019 | | | | | | | 700,000 | | | | | | | — | | | | | | | 4,392,808 | | | | | | | — | | | | | | | 700,000 | | | | | | | 34,941 | | | | | | | 5,827,749 | | |
| | | 2018 | | | | | | | 700,000 | | | | | | | — | | | | | | | 2,848,258 | | | | | | | — | | | | | | | 1,750,000 | | | | | | | 36,987 | | | | | | | 5,335,245 | | | ||||
| | | 2017 | | | | | | | 650,000 | | | | | | | — | | | | | | | 1,531,500 | | | | | | | — | | | | | | | 975,000 | | | | | | | 24,861 | | | | | | | 3,181,361 | | | ||||
|
Jason Montague
President and Chief Executive Officer, Regent |
| | | | | 2019 | | | | | | | 700,000 | | | | | | | — | | | | | | | 2,555,694 | | | | | | | — | | | | | | | 700,000 | | | | | | | 50,936 | | | | | | | 4,006,630 | | |
| | | 2018 | | | | | | | 700,000 | | | | | | | — | | | | | | | 2,848,258 | | | | | | | — | | | | | | | 1,750,000 | | | | | | | 50,277 | | | | | | | 5,348,535 | | | ||||
| | | 2017 | | | | | | | 650,000 | | | | | | | — | | | | | | | 1,531,500 | | | | | | | — | | | | | | | 975,000 | | | | | | | 46,561 | | | | | | | 3,203,061 | | | ||||
|
Andrew Stuart
Former President and Chief Executive Officer, Norwegian |
| | | | | 2019 | | | | | | | 700,000 | | | | | | | — | | | | | | | 2,555,694 | | | | | | | — | | | | | | | 700,000 | | | | | | | 1,510,796 | | | | | | | 5,466,490 | | |
| | | 2018 | | | | | | | 700,000 | | | | | | | — | | | | | | | 2,848,258 | | | | | | | — | | | | | | | 1,750,000 | | | | | | | 49,399 | | | | | | | 5,347,657 | | | ||||
| | | 2017 | | | | | | | 650,000 | | | | | | | — | | | | | | | 1,531,500 | | | | | | | — | | | | | | | 975,000 | | | | | | | 47,736 | | | | | | | 3,204,236 | | |
|
Name
|
| |
Automobile
($)(a) |
| |
401(k)
Employer Match ($)(b) |
| |
Executive
Medical Plan Premium ($)(c) |
| |
Severance
($)(d) |
| |
CEO
Benefits ($)(e) |
| |
Other
Benefits ($)(f) |
| |
Total
($) |
| |||
| Frank J. Del Rio | | | | | 27,600 | | | |
13,700
|
| |
12,120
|
| |
—
|
| |
152,000
|
| |
1,620
|
| |
207,040
|
|
| Mark A. Kempa | | | | | 14,400 | | | |
13,700
|
| |
18,480
|
| |
—
|
| |
—
|
| |
756
|
| |
47,336
|
|
| Robert Binder | | | | | — | | | |
13,700
|
| |
12,120
|
| |
—
|
| |
—
|
| |
9,121
|
| |
34,941
|
|
| Jason Montague | | | | | 18,000 | | | |
13,700
|
| |
18,480
|
| |
—
|
| |
—
|
| |
756
|
| |
50,936
|
|
| Andrew Stuart | | | | | 18,000 | | | |
13,700
|
| |
18,480
|
| |
1,459,860
|
| |
—
|
| |
756
|
| |
1,510,796
|
|
| | | | |
Grant
Date |
| | |
Compen-
sation Committee Approval Date (If Different than Grant Date) |
| | |
Estimated Potential
Payouts Under Non-Equity Incentive Plan Awards(1) |
| | |
Estimated Future
Payouts Under Equity Incentive Plan Awards |
| | |
All Other
Stock Awards: Number of Shares of Stock or Units (#) |
| | |
All Other
Option Awards: Number of Securities Underlying Options (#) |
| | |
Exercise
or Base Price of Option Awards ($/Sh) |
| | |
Grant Date
Fair Value of Stock and Option Awards(2) ($) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name
|
| | |
Threshold
($) |
| | |
Target
($) |
| | |
Max
($) |
| | |
Threshold
(#) |
| | |
Target
(#) |
| | |
Max
(#) |
| | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Frank J. Del Rio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
2019 Annual Cash Performance Incentive
|
| | | | | — | | | | | | | — | | | | | | | 1,800,000 | | | | | | | 3,600,000 | | | | | | | 5,400,000 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
|
RSU Award(3)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 33,881 | | | | | | | — | | | | | | | — | | | | | | | 1,872,603 | | |
|
PSU Award(4)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 2 | | | | | | | 101,644 | | | | | | | 203,288 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 10,328,721 | | |
| Mark A. Kempa | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
2019 Annual Cash Performance Incentive
|
| | | | | — | | | | | | | — | | | | | | | 350,000 | | | | | | | 700,000 | | | | | | | 1,750,000 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
|
RSU Award(3)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 24,093 | | | | | | | — | | | | | | | — | | | | | | | 1,331,620 | | |
|
PSU Award(4)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 2 | | | | | | | 12,046 | | | | | | | 24,092 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 1,224,074 | | |
| Robert Binder | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
2019 Annual Cash Performance Incentive
|
| | | | | — | | | | | | | — | | | | | | | 350,000 | | | | | | | 700,000 | | | | | | | 1,750,000 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
|
RSU Award(3)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 24,093 | | | | | | | — | | | | | | | — | | | | | | | 1,331,620 | | |
|
RSU Award(5)
|
| | | | | 3/1/19 | | | | | | | 5/7/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 8,031 | | | | | | | | | | | | | | | | | | | | | 459,293 | | |
|
PSU Award(4)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 2 | | | | | | | 12,046 | | | | | | | 24,092 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 1,224,074 | | |
|
PSU Award(5)
|
| | | | | 3/1/19 | | | | | | | 5/7/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 2 | | | | | | | 12,046 | | | | | | | 24,092 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 1,377,821 | | |
| Jason Montague | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
2019 Annual Cash Performance Incentive
|
| | | | | — | | | | | | | — | | | | | | | 350,000 | | | | | | | 700,000 | | | | | | | 1,750,000 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
|
RSU Award(3)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 24,093 | | | | | | | — | | | | | | | — | | | | | | | 1,331,620 | | |
|
PSU Award(4)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 2 | | | | | | | 12,046 | | | | | | | 24,092 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 1,224,074 | | |
| Andrew Stuart | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
2019 Annual Cash Performance Incentive
|
| | | | | — | | | | | | | — | | | | | | | 350,000 | | | | | | | 700,000 | | | | | | | 1,750,000 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
|
RSU Award(3)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 24,093 | | | | | | | — | | | | | | | — | | | | | | | 1,331,620 | | |
|
PSU Award(4)
|
| | | | | 3/1/19 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 2 | | | | | | | 12,046 | | | | | | | 24,092 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 1,224,074 | | |
| | | | |
Option Awards
|
| | |
Stock Awards
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name
|
| | |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| | |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
| | |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options(1) (#) |
| | |
Option
Exercise Price ($/Sh) |
| | |
Option
Expiration Date |
| | |
Number of
Shares or Units of Stock That Have Not Vested(2) (#) |
| | |
Market
Value of Shares or Units of Stock That Have Not Vested(3) ($) |
| | |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested(1) (#) |
| | |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested(3) ($) |
| |||||||||||||||||||||||||||
|
Frank J. Del Rio
|
| | | | | 739,583 | | | | | | | — | | | | | | | 208,333(10) | | | | | | | 59.43 | | | | | | | 8/3/2025 | | | | | | | 17,572(4) | | | | | | | 1,026,381 | | | | | | | 50,000(10) | | | | | | | 2,920,500 | | |
| | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 35,304(5) | | | | | | | 2,062,107 | | | | | | | 158,870(8) | | | | | | | 9,279,597 | | |
| | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 33,881(6) | | | | | | | 1,978,989 | | | | | | | 203,288(9) | | | | | | | 11,874,052 | | |
| | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 158,146(7) | | | | | | | 9,237,308 | | | | | | | — | | | | | | | — | | |
|
Mark A. Kempa
|
| | | | | 4,952 | | | | | | | — | | | | | | | — | | | | | | | 19.00 | | | | | | | 1/17/2020 | | | | | | | 4,167(4) | | | | | | | 243,394 | | | | | | | 8,826(8) | | | | | | | 515,527 | | |
| | | | | | | 10,000 | | | | | | | — | | | | | | | — | | | | | | | 30.95 | | | | | | | 6/30/2023 | | | | | | | 5,884(5) | | | | | | | 343,684 | | | | | | | 24,092(9) | | | | | | | 1,407,214 | | |
| | | | | | | 15,000 | | | | | | | — | | | | | | | — | | | | | | | 31.90 | | | | | | | 6/30/2024 | | | | | | | 24,093(6) | | | | | | | 1,407,272 | | | | | | | — | | | | | | | — | | |
| | | | | | | 15,000 | | | | | | | — | | | | | | | — | | | | | | | 41.79 | | | | | | | 11/18/2024 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| | | | | | | 30,000 | | | | | | | — | | | | | | | — | | | | | | | 56.19 | | | | | | | 6/30/2025 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| | | | | | | 15,000 | | | | | | | — | | | | | | | — | | | | | | | 50.31 | | | | | | | 2/28/2026 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Robert Binder | | | | | | 37,500 | | | | | | | — | | | | | | | — | | | | | | | 50.31 | | | | | | | 2/28/2026 | | | | | | | 10,000(4) | | | | | | | 584,100 | | | | | | | 23,536(8) | | | | | | | 1,374,738 | | |
| | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 15,691(5) | | | | | | | 916,511 | | | | | | | 24,092(9) | | | | | | | 1,407,214 | | |
| | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 24,093(6) | | | | | | | 1,407,272 | | | | | | | — | | | | | | | — | | |
|
Jason Montague
|
| | | | | 40,000 | | | | | | | — | | | | | | | — | | | | | | | 41.79 | | | | | | | 11/18/2024 | | | | | | | 10,000(4) | | | | | | | 584,100 | | | | | | | 23,536(8) | | | | | | | 1,374,738 | | |
| | | | | | | 60,000 | | | | | | | — | | | | | | | — | | | | | | | 43.76 | | | | | | | 2/1/2025 | | | | | | | 15,691(5) | | | | | | | 916,511 | | | | | | | 24,092(9) | | | | | | | 1,407,214 | | |
| | | | | | | 50,000 | | | | | | | — | | | | | | | — | | | | | | | 56.19 | | | | | | | 6/30/2025 | | | | | | | 24,093(6) | | | | | | | 1,407,272 | | | | | | | — | | | | | | | — | | |
| | | | | | | 37,500 | | | | | | | — | | | | | | | — | | | | | | | 50.31 | | | | | | | 2/28/2026 | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Andrew Stuart | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 10,000(4) | | | | | | | 584,100 | | | | | | | 23,536(8) | | | | | | | 1,374,738 | | |
| | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 15,691(5) | | | | | | | 916,511 | | | | | | | 24,092(9) | | | | | | | 1,407,214 | | |
| | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | 24,093(6) | | | | | | | 1,407,272 | | | | | | | — | | | | | | | — | | |
| | | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||
|
Name
|
| |
Number of
Shares Acquired on Exercise (#) |
| |
Value
Realized on Exercise ($)(1) |
| |
Number of
Shares Acquired on Vesting (#) |
| |
Value
Realized on Vesting ($)(1) |
| ||||||||||||
| Frank J. Del Rio | | | | | — | | | | | | — | | | | | | 72,723 | | | | | | 3,957,900 | | |
| Mark A. Kempa | | | | | — | | | | | | — | | | | | | 9,609 | | | | | | 531,089 | | |
| Robert Binder | | | | | — | | | | | | — | | | | | | 54,095 | | | | | | 2,969,731 | | |
| Jason Montague | | | | | — | | | | | | — | | | | | | 39,095 | | | | | | 2,165,281 | | |
| Andrew Stuart | | | | | 311,551 | | | | | | 5,099,294 | | | | | | 44,095 | | | | | | 2,433,431 | | |
| |
Frank J. Del Rio
|
| |
| |
Mark A. Kempa
|
| |
| |
Robert Binder
|
| |
| |
Jason Montague
|
| |
| |
Andrew Stuart
|
| |
| |
Frank J. Del Rio
|
| |
| |
Andrew Stuart
|
| |
| |
Other NEOs
|
| |
|
Name
|
| | |
Voluntary
Termination or Termination for Cause ($) |
| | |
Death, Disability or
Retirement ($) |
| | |
Termination Without
Cause or Good Reason ($) |
| | |
Change in
Control Termination ($) |
| ||||||||||||
| Frank J. Del Rio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Severance Payment
|
| | | | | — | | | | | | | 10,269,000 | | | | | | | 13,869,000 | | | | | | | — | | |
|
Insurance Continuation
|
| | | | | — | | | | | | | — | | | | | | | 55,700 | | | | | | | — | | |
|
Equity Acceleration
|
| | | | | — | | | | | | | 29,521,407(1) | | | | | | | 32,441,907(2) | | | | | | | — | | |
| Mark A. Kempa | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Severance Payment
|
| | | | | — | | | | | | | — | | | | | | | 2,100,000 | | | | | | | 2,100,000 | | |
|
Insurance Continuation
|
| | | | | — | | | | | | | — | | | | | | | 59,860 | | | | | | | 59,860 | | |
|
Equity Acceleration
|
| | | | | — | | | | | | | — | | | | | | | — | | | | | | | 3,917,091(3) | | |
| Robert Binder | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Severance Payment
|
| | | | | — | | | | | | | — | | | | | | | 2,100,000 | | | | | | | 2,100,000 | | |
|
Insurance Continuation
|
| | | | | — | | | | | | | — | | | | | | | 41,775 | | | | | | | 41,775 | | |
|
Equity Acceleration
|
| | | | | — | | | | | | | 2,907,883(4) | | | | | | | 2,907,883(4) | | | | | | | 5,689,835(3) | | |
| Jason Montague | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Severance Payment
|
| | | | | — | | | | | | | — | | | | | | | 2,100,000 | | | | | | | 2,100,000 | | |
|
Insurance Continuation
|
| | | | | — | | | | | | | — | | | | | | | 59,860 | | | | | | | 59,860 | | |
|
Equity Acceleration
|
| | | | | — | | | | | | | — | | | | | | | — | | | | | | | 5,689,835(3) | | |
|
Plan Category
|
| |
Number of Securities
to Be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a)(1) |
| |
Weighted-Average
Exercise Price of Outstanding Options, Warrants and Rights (b)(2) |
| |
Number of Securities
Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)(3) |
| |||||||||
| Equity compensation plans approved by security holders | | | | | 9,667,397 | | | | | $ | 52.30 | | | | | | 11,310,971 | | |
| Equity compensation plans not approved by security holders | | | | | — | | | | | | — | | | | | | — | | |
|
Total
|
| | | | 9,667,397 | | | | | $ | 52.30 | | | | | | 11,310,971 | | |
|
|
| |
OUR BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE
“ONE YEAR” AS THE PREFERRED FREQUENCY OF FUTURE SAY-ON-PAY VOTES. |
|
| | | |
Total Fees
Year Ended December 31, |
| |||||||||
| | | |
2019
|
| |
2018
|
| ||||||
| | | |
(in thousands)
|
| |||||||||
| Audit fees | | | | $ | 5,545 | | | | | $ | 4,980 | | |
| Audit-related fees | | | | | 200 | | | | | | 275 | | |
| Tax fees | | | | | 497 | | | | | | 340 | | |
| All other fees | | | | | 2 | | | | | | 2 | | |
| Total | | | | $ | 6,244 | | | | | $ | 5,597 | | |
|
|
| |
OUR BOARD UNANIMOUSLY RECOMMENDS A VOTE
“FOR” RATIFICATION OF THE APPOINTMENT OF PWC AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR 2020
AND THE AUDIT COMMITTEE’S DETERMINATION OF PWC’S REMUNERATION. |
|
| | | |
Ordinary Shares
Beneficially Owned |
| ||||||
|
Name and Address(1)
|
| |
Number
|
| |
Percent
|
| |||
| The Vanguard Group(2) | | | | | 23,702,624 | | | |
11.0%
|
|
| T. Rowe Price Associates, Inc.(3) | | | | | 17,626,383 | | | |
8.2%
|
|
| BlackRock, Inc.(4) | | | | | 14,250,160 | | | |
6.6%
|
|
| Capital World Investors(5) | | | | | 12,222,271 | | | |
5.7%
|
|
| Janus Henderson Group plc(6) | | | | | 11,838,387 | | | |
5.5%
|
|
| David M. Abrams | | | | | 19,508 | | | |
*
|
|
| Adam M. Aron | | | | | 9,755 | | | |
*
|
|
| John W. Chidsey | | | | | 27,453 | | | |
*
|
|
| Stella David | | | | | 15,287 | | | |
*
|
|
| Russell W. Galbut(7) | | | | | 436,664 | | | |
*
|
|
| Mary E. Landry | | | | | 4,844 | | | |
*
|
|
| Chad A. Leat | | | | | 21,806 | | | |
*
|
|
| Steve Martinez | | | | | — | | | |
—
|
|
| Pamela Thomas-Graham | | | | | 5,153 | | | |
*
|
|
| Frank J. Del Rio(8) | | | | | 1,046,260 | | | |
*
|
|
| Mark A. Kempa(9) | | | | | 115,665 | | | |
*
|
|
| Robert Binder(10) | | | | | 128,984 | | | |
*
|
|
| Jason Montague(11) | | | | | 250,258 | | | |
*
|
|
| Andrew Stuart | | | | | 144,879 | | | |
*
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All current directors and current executive officers as a group (17 persons)(12)
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| | | | 2,682,300 | | | |
1.2%
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How to Vote in Advance
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Your vote is important. Please vote as soon as possible by one of the methods shown below. Be sure to have your proxy card, voting instruction form or Notice of Internet Availability of Proxy Materials in hand:
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By telephone
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You can vote your shares by calling the number provided in the proxy card or voting instruction form
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By Internet
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You can vote your shares online at www.proxyvote.com
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By mail
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Complete, sign, date and return your proxy card or voting instruction form in the postage-paid envelope provided
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YOU ARE URGED TO SUBMIT YOUR PROXY OR VOTING INSTRUCTIONS AS SOON AS POSSIBLE WHETHER OR NOT YOU EXPECT TO ATTEND THE ANNUAL GENERAL MEETING AND VOTE IN PERSON. If you attend the Annual General Meeting and vote in person, your proxy will not be used.
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INVESTOR RELATIONS
7665 CORPORATE CENTER DRIVE MIAMI, FLORIDA 33126 |
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OR BY TELEPHONE REQUEST TO
(305) 436-4000. |
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Year Ended December 31,
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2019
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2018
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| Net income | | | | $ | 930,228 | | | | | $ | 954,843 | | |
| Non-GAAP Adjustments: | | | | | | | | | | | | | |
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Non-cash deferred compensation expenses(1)
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| | | | 3,514 | | | | | | 3,453 | | |
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Non-cash share-based compensation expenses(2)
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| | | | 95,055 | | | | | | 115,983 | | |
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Secondary equity offering expenses(3)
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| | | | — | | | | | | 883 | | |
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Severance payments and other fees(4)
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| | | | 6,514 | | | | | | — | | |
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Extinguishment and modification of debt(5)
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| | | | 16,676 | | | | | | 6,346 | | |
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Amortization of intangible assets(6)
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| | | | 18,414 | | | | | | 24,890 | | |
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Redeployment of Norwegian Joy(7)
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| | | | 30,629 | | | | | | — | | |
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Other(8)
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| | | | — | | | | | | (1,412) | | |
| Adjusted Net Income | | | | $ | 1,101,030 | | | | | $ | 1,104,986 | | |
| Diluted weighted-average shares outstanding – Net income and Adjusted Net Income | | | | | 216,475,076 | | | | | | 224,419,205 | | |
| Diluted earnings per share | | | | $ | 4.30 | | | | | $ | 4.25 | | |
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Adjusted EPS
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| | | $ | 5.09 | | | | | $ | 4.92 | | |
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Year Ended
December 31, 2019 |
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| Passenger ticket revenue | | | | $ | 4,517,393 | | |
| Onboard and other revenue | | | | | 1,944,983 | | |
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Total revenue
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| | | | 6,462,376 | | |
| Less: | | | | | | | |
| Commissions, transportation and other expense | | | | | 1,120,886 | | |
| Onboard and other expense | | | | | 394,673 | | |
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Net Revenue
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| | | | 4,946,817 | | |
| Capacity Days | | | | | 19,233,459 | | |
| Gross Yield | | | | $ | 336.00 | | |
| Net Yield | | | | $ | 257.20 | | |