Norwegian Cruise Line‘s president and CEO isn’t going anywhere for awhile.
On Friday, the Doral-based company disclosed in a regulatory filing that Kevin Sheehan had extended his contract for another three years, with automatic renewals that would bump it to five years unless he or the company object. The agreement is effective dating back to April 1.
Sheehan’s base salary will jump from about $1.2 million to $1.55 million — a nearly 30 percent increase. As part of the agreement, he’ll be entitled to a 5 percent raise every year. He also received options to buy 500,000 ordinary shares under a performance incentive plan and will be entitled to options to buy 500,000 more after each anniversary.
He took the reins as CEO in late 2008. Sheehan’s previous contract was set to renew for a year on Nov. 5 and each anniversary after, but either the company or Sheehan could have cut ties by deciding not to renew within 90 days of the end of the term.
“It’s better for both the investors and the organization to have certainty around me staying,” Sheehan said in a phone interview.
Earlier this year, the company had a successful initial public offering; last month, Norwegian launched its newest ship, Norwegian Breakaway, in New York City. A new ship, Getaway, will debut in Miami in January 2014.
Norwegian Cruise Line Holdings shares closed Friday at $31.24, up 1.46 percent from the previous day’s close.
(c)2013 The Miami Herald. Distributed by MCT Information Services.