Support Skift’s Independent JournalismMake a Contribution Now
Royal Caribbean Cruises Ltd., under pressure from its largest shareholder, doubled its dividend and will make directors stand for election every year.
The world’s second-largest cruise-line operator after Carnival Corp. also elected William L. Kimsey as its lead director. Kimsey is the former chief executive officer of accountants Ernst & Young Global Ltd.
“I am pleased by the steps our board has taken to further enhance our corporate governance, and I look forward to working with my fellow directors and management to improve shareholder value,” Kimsey said in a statement.
The board of the Miami-based company increased its quarterly dividend to 25 cents from 12 cents, payable Oct. 8.
A. Wilhelmsen AS, the Oslo-based owner of a 19 percent stake in the cruise line, said in May that it was supporting a shareholder proposal to make directors stand for election every year. The proposal passed.
Staggered terms for boards are a hurdle to activist investors because they require a multiyear effort to make changes. Directors at the company previously served three-year terms, with no more than four standing for election at a time.
Royal Caribbean rose 1.3 percent to $38.72 today at the New York close. The shares were little changed in extended trading after the announcement.
–Editors: Stephen West, Anthony Palazzo
To contact the reporter on this story: Christopher Palmeri in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Palazzo at email@example.com