Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

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Employee Benefits and Compensation Plans
3 Months Ended
Mar. 31, 2024
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Employee Benefits and Compensation Plans

8.   Employee Benefits and Compensation Plans

Restricted Share Unit Awards

In March 2024, NCLH granted 4.5 million time-based restricted share unit awards to our employees, which primarily vest in substantially equal installments over three years. Additionally, in March 2024, NCLH granted 0.9 million performance-based restricted share units to certain members of our management team, which vest upon the achievement of certain pre-established performance targets established through 2026 and the satisfaction of an additional time-based vesting requirement that generally requires continued employment through March 1, 2027.

The following is a summary of restricted share unit activity for the three months ended March 31, 2024:

Number of

Weighted-

Number of

Weighted-

Time-Based

Average Grant

Performance-

Average Grant

    

Awards

    

Date Fair Value

    

Based Awards

    

Date Fair Value

Non-vested as of January 1, 2024

 

9,083,120

$

17.39

 

2,140,134

$

19.41

Granted

 

4,619,945

19.27

945,040

19.29

Vested

 

(4,288,932)

18.84

(334,888)

31.78

Forfeited or expired

 

(113,048)

17.44

Non-vested as of March 31, 2024

 

9,301,085

17.66

 

2,750,286

17.86

The compensation expense recognized for share-based compensation for the periods presented include the following (in thousands):

Three Months Ended

March 31, 

    

2024

    

2023

Payroll and related expense

$

4,614

$

4,457

Marketing, general and administrative expense

 

17,334

 

23,698

Total share-based compensation expense

$

21,948

$

28,155