Norwegian Cruise Lines Holdings Board Restructured After Investor Pressure
by Bruce Parkinson
John Chidsey has been named Chair of the NCLH Board. Photo: NCLH
Norwegian Cruise Line Holdings Ltd. has announced the appointment of five new members to its Board of Directors, following pressure from activist investor Elliott Investment Management.
Effective March 31, the following individuals will join the Board as independent directors:
- Alex Cruz, former Chairman and CEO of British Airways.
- Kevin A. Lansberry, former EVP and CFO of Disney Experiences.
- Steve Pagliuca, former Managing Partner and Co-Chairman of Bain Capital.
- Brian P. MacDonald, President and CEO of CDK Global.
- Jonathan Z. Cohen, Founder, CEO and President of Hepco Capital Management.
NCLH President and CEO John W. Chidsey has been appointed Chairman, with Alex Cruz appointed Lead Independent Director.
Current Board directors Stella David, David M. Abrams, Harry C. Curtis and Mary E. Landry have announced their resignations.
The new Board will comprise nine members, eight of whom are independent.
“We are moving with urgency to strengthen the business and enhance execution. There are significant opportunities to deliver stronger performance and sustainable value for our shareholders,” said Chidsey.
“Our award-winning brands, loyal guests and dedicated team form a strong and enduring foundation, and I look forward to working closely with our Board to build on that foundation as we continue delivering exceptional vacation experiences for our guests around the world.”
Elliott Investment Management signalled that it approves of the new Board makeup and company leadership.
“As NCLH’s largest investor, we see the potential for significant value creation ahead under John’s leadership, and we believe the experience and credibility of this newly appointed Board will help restore investor confidence and return the Company to best-in-class financial performance,” said Elliott Partner John Pike and Portfolio Manager Bobby Xu.
“We are encouraged by our constructive engagement with John and we look forward to working with him and the rest of the Board as they drive the changes necessary to meaningfully improve operational execution and capitalize on the substantial opportunities at NCLH.”
