UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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FORM
CURRENT REPORT
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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of President and Chief Executive Officer, Oceania Cruises
On November 8, 2021, Norwegian Cruise Line Holdings Ltd. (the “Company”) announced that Mr. Robert Binder, President and Chief Executive Officer, Oceania Cruises and Vice Chairman, Oceania Cruises and Regent, would be transitioning to a new advisory role as Vice Chairman, Norwegian Cruise Line Holdings Ltd., effective as of January 1, 2022. Simultaneously, the Company announced the appointment of Mr. Howard Sherman, age 53, as President and Chief Executive Officer, Oceania Cruises, effective as of January 1, 2022. There are no arrangements or understandings between Mr. Sherman and any other persons pursuant to which he was selected as an officer, and he has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
Mr. Sherman has served as Executive Vice President, Onboard Revenue and Destination Services of the Company since September 2016 and as Executive Vice President, Revenue Management from February 2015 until September 2016. Prior to the Company’s acquisition of Prestige Cruises International S. de R.L. (“Prestige”), Mr. Sherman held various roles at Prestige from 2003 to 2014 including Executive Vice President, Revenue Management and Chief Revenue Officer, Senior Vice President, Revenue Management and Vice President of Yield and Inventory Management. Mr. Sherman holds a Bachelor’s degree in Accounting from St. Thomas University.
Employment Agreement
In connection with his promotion, Mr. Sherman entered into a new employment agreement with a subsidiary of the Company, which will be effective as of January 1, 2022. Mr. Sherman’s employment agreement has an initial term from January 1, 2022 through December 31, 2022 (the “Expiration Date”), which will automatically renew on the Expiration Date and each anniversary of the Expiration Date thereafter for additional one-year terms unless either we or Mr. Sherman gives notice of non-renewal within sixty days prior to the end of the term. The material terms of the employment agreement are summarized below.
Base Salary and Bonus. Mr. Sherman will receive an annual base salary of $700,000, subject to annual review. Mr. Sherman will also be eligible for an annual bonus in an amount to be determined by the Compensation Committee of the Company.
Equity Awards. Mr. Sherman will be eligible to participate in the Company’s Amended and Restated 2013 Performance Incentive Plan (the “Plan”). Any grants made to Mr. Sherman under the Plan must be approved by the Compensation Committee of the Company.
Other Benefits. Mr. Sherman will be eligible to participate in the benefit plans and programs generally available to other similarly situated executives, including an executive medical plan. He will also be entitled to a $1,500 monthly car allowance and 5 weeks of vacation per year.
Severance Terms. If we terminate Mr. Sherman’s employment without cause, provide notice that his agreement shall not be extended or further extended, or Mr. Sherman terminates his employment for good reason, he will be entitled to receive: (i) a severance payment equal to two times his base salary then in effect, payable in substantially equal installments over a period of 12 months, (ii) payment of a pro-rata portion of any annual bonus actually earned for the year of termination and (iii) reimbursement of premiums to continue medical and dental.
Item 9.01Financial Statements and Exhibits.
(d) | Exhibits. |
Exhibit |
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10.1 | ||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Norwegian Cruise Line Holdings Ltd. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: November 8, 2021 | NORWEGIAN CRUISE LINE HOLDINGS LTD. | ||
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| By: | /s/Daniel S. Farkas |
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| Daniel S. Farkas |
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| Executive Vice President, General Counsel and Assistant Secretary | |
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