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.