8-KLeadership ChangesExhibits & Filings

ROYAL CARIBBEAN CRUISES LTD 8-K Report, Executive Changes (May 11, 2018)

Filed May 11, 2018For Securities:RCL

Summary

Royal Caribbean Cruises Ltd. (RCL) has filed an 8-K report detailing amendments to the employment agreement of Adam Goldstein, the company's former President and Chief Operating Officer. Effective May 16, 2018, Mr. Goldstein will transition to the role of Vice Chairman. This change in role comes with adjusted compensation and severance provisions, indicating a planned leadership evolution within the company. Investors should note the specific financial implications of this transition. Mr. Goldstein's base compensation will be reduced, initially at $500,000 per annum through December 31, 2018, and then further reduced to $250,000 per annum thereafter. While his entitlement to standard severance is modified, a specific severance payment of $4,000,000 is contingent upon termination without cause before February 29, 2019. This filing clarifies the compensation structure for a key executive during his transition, offering transparency on potential future financial obligations.

Key Highlights

  • 1Adam Goldstein transitions from President and Chief Operating Officer to Vice Chairman, effective May 16, 2018.
  • 2Amendment to Mr. Goldstein's employment agreement outlines new compensation and severance terms.
  • 3Mr. Goldstein's base compensation will be $500,000 per annum from May 16, 2018, to December 31, 2018, then $250,000 per annum thereafter.
  • 4For the 2018 calendar year, Mr. Goldstein will receive a prorated bonus based on his service as President and COO.
  • 5Severance payment of $4,000,000 is stipulated if Mr. Goldstein's employment is terminated 'without cause' on or before February 28, 2019.
  • 6Standard severance provisions are modified under the amended agreement, with specific exceptions.
  • 7The full text of the Amendment to Employment Agreement is filed as an exhibit to this 8-K.

Frequently Asked Questions

Adam Goldstein is transitioning from President and Chief Operating Officer to Vice Chairman. This suggests a planned leadership succession or restructuring within Royal Caribbean Cruises Ltd., allowing for a shift in executive responsibilities and potentially leveraging his experience in a new capacity.

His base compensation is reduced. He will receive $500,000 per annum through December 31, 2018, and then $250,000 per annum afterward. He will also receive a prorated bonus for the 2018 period he served as President and COO.

The amendment modifies his severance entitlement. Generally, he will not be entitled to the severance otherwise payable under his original agreement. However, a specific payment of $4,000,000 will be made if his employment is terminated 'without cause' (as defined in the agreement) on or before February 28, 2019.

This 8-K filing specifically addresses executive compensation and role changes for Adam Goldstein. It does not provide information on the company's overall financial performance or indicate broader financial issues. Investors should refer to other SEC filings, such as the company's quarterly (10-Q) or annual (10-K) reports, for comprehensive financial data.