Norwegian Cruise Line Holdings announced on Monday it entered into a new employment agreement with Frank J. Del Rio to supersede his existing employment agreement that keeps him with the company through the end of 2023, according to a company SEC filing.
The press release called it a critical time for the company.
Del Rio’s term of employment as the company’s President and Chief Executive Officer is extended to December 31, 2023, according to Norwegian.
The company’s top executive took home $18 million as total compensation in 2019.
Del Rio will receive an annual base salary of $1,800,000 going forward.
“Any reduction in base salary pursuant to the Base Salary Reduction Letter will continue to apply for so long as it applies to other executive officers,” the company said.
Annual Bonus. Beginning with the 2021 fiscal year, Del Rio will be eligible for an annual bonus subject to the achievement of performance objectives established by the Compensation Committee of the Company in good faith consultation.
Del Rio’s annual target bonus for each fiscal year during his term of employment will equal 200% of his base salary, and for fiscal years 2022 and 2023, the maximum annual bonus payable for outperformance will be 400% of his base salary.
The New Employment Agreement also entitles Del Rio to receive the same automobile and other personal benefits as under the prior employment agreement.
Del Rio was also granted a restricted share unit award with a grant date fair value of $6,000,000. The Inducement RSUs will cliff vest on the third anniversary of the grant date, subject to Mr. Del Rio’s continued employment through such vesting date. Del Rio is also entitled to an inducement cash award equal to $2,824,495 payable no later than December 31, 2020.
If Del Rio’s employment is terminated for “cause” or he voluntarily resigns his employment without “good reason) prior to December 31, 2021, Mr. Del Rio is required to repay 100% of the Inducement Cash Award, the company said.
