Nepotism and Employee Firings Plague Norwegian Cruise Line Holdings

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Nepotism and Employee Firings Plague Norwegian Cruise Line Holdings


Norwegian Cruise Line Holdings, guardian firm of NCL, Oceania Cruises and Regent Seven Seas Cruises, terminated 9 p.c of its shoreside workforce earlier this week, based on the Miami Herald.  NCL didn’t clarify why it was essential to terminate almost a tenth of its workers, notably in the course of the vacation season. Meanwhile, NCLH promoted its CEO’s son to a profitable place (see under) as president of a NCLH model, Oceania Cruises.

NCL launched a conclusory and gobbledygook assertion that it took “several prudent actions across our business to align with our strategic priorities.”

The Miami Herald referred to NCL’s SEC submitting which mentioned that “cost minimization initiatives” in an effort to obtain “sustained, profitable growth” have been what prompted the layoffs.

Cruise Industry News mentioned NCLH has over 3,500 full-time shoreside workers (per its 2021 Environmental Report), that means layoffs may whole over 300 workers.

The Rich Get Richer

The Miami Herald identified that “Frank Del Rio, NCLH CEO (photo above), has come under fire in recent years for his salary.” Reuters reported that there was “rising opposition” to CEO Del Rio’s excessive pay pay tied to “questionable practices.”

“While the industry was in crisis and laying off thousands of workers during the pandemic as the company lost up to 150 million dollars a month, Del Rio made $36.4 million in 2020. He took in $22.6 million in 2021.”

CEO Del Rio (senior) is by far the best paid cruise government on this planet. Including his compensation in 2015 of almost $31,000,000, he had earnings of over $129,000,000 for a 5 12 months interval, together with $22,590,000 in 2018, $17,808,000 in 2019, $36,400,000 in 2020 and $22,600,000 in 2021.

As Skift revealed, Del Rio’s exorbitant earnings is over 1,000 instances greater than the median wage at NCL of $19,319.

In 2021, the New York Times included Del Rio (senior) in an article titled “C.E.O. Pay Remains Stratospheric, Even at Companies Battered by Pandemic” the place it wrote:

“Norwegian Cruise Line barely survived the year. With the cruise industry at a standstill, the company lost $4 billion and furloughed 20 percent of its staff. That didn’t stop Norwegian from more than doubling the pay of Frank Del Rio, its chief executive, to $36.4 million.”

Like Father Like Son

While NCL was unceremoniously terminated hundreds of its workers, it introduced that Del Rio’s son, 44-year-old Frank Del Rio Jr., was promoted to president of Oceania Cruises. To make means for Del Rio’s son, the present president of Oceania, Howard Sherman, shall be changed and can assume the place of what NCLH is asking a “special advisor.”

Frank Jr.’s employment contract is connected and supplies:

  • Base annual wage of  $500,000.00;
  • Incentive bonus;
  • Equity award;
  • Retirement, Welfare and Fringe Benefits;
  • Medical Executive Reimbursement Plan;
  • Cash automotive allowance of $1,500.00 monthly / $18,000 per 12 months; and
  • Paid trip of 4 (4) weeks  per 12 months and “all other holiday and leave pay generally available to other similarly situated executives of the Company.”

Skift reported this summer season that Del Rio Sr.’s “car allowance alone was a whopping $27,600″ ($2,300 a month).”  The new cruise government Del  Rio (Junior) additionally stands to gather many thousands and thousands of {dollars} in incentive bonuses and fairness awards along with his $500,000 wage.

NCL Jacks Up Its Service  Fees 

Earlier this month, we reported that NCL is drastically rising its service fees by an unprecedented 25% for many cabins, efficient January 1, 2023. NCL’s friends staying in The Haven and different suites will face a $5 enhance to a whopping whole of $25 per individual per day.

Del Rio senior has developed a popularity of being a grasping cruise tycoon who has gouged its clients earlier than, with further greater fees, together with elevated room companies fees, automated gratuities, restaurant cowl fees, service charges for continental breakfast room service, and each different conceivable expense that clients may presumably be “nickeled and dimed” for.

Even the common cruise bloggers and cruise cheerleaders like The Points Guy (Gene Sloan) are calling NCL’s newest price hike “unprecedented” and “enormously” excessive. Mr. Sloan writes:

“With the increase, a family of four staying in a suite will pay a cool $700 in service fees during a typical seven-night cruise — a level never before seen in the cruise business.”

The fashionable @CruiseGuy (Stewart Chiron) tweeted “YIKES!” NCL “to further hike cruise service charges to levels never before seen in cruising.”

The Crew Members Continue to Get Screwed

A portion of the cash generated on NCL’s cruise ships by the elevated charges will go towards non-tip earners (like kitchen workers, cleaners, and many others.) to defray the wages that NCL pays. And among the charges described by cruise cheerleaders as “unprecedented” and “enormously” excessive charges will go towards NCL’s earnings and government salaries, as I defined in NCL Increases Service Fees Again – But Will NCL’s Crew Remain Underpaid While CEO Del Rio Continues to be Paid an Average of $25,000,000 a Year?

Tis the Christmas Season (Bah Humbug?)

For a whole bunch of fired NCL shoreside workers, it is going to be a bleak vacation season. But for the Del Rios, junior and senior, they will start to consider what luxurious vehicles to lease with their $3,800 a month (greater than $45,000 a 12 months) automotive allowances, which is a number of instances higher than the imply NCL compensation of simply $19,319.

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Image Credit: Frank Del Rio (senior) – Mark Elias/Bloomberg through Getty Images and Storify.

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