Carnival CEO Arnold Donald Is Stepping Down

Arnold Donald, Carnival Corp.’s president and CEO, is stepping down, the world’s largest cruise company announced Tuesday. Donald’s last day will be Aug. 1, where he will be appointed vice chair and member of the boards of directors.

The move comes as Carnival is struggling to overcome the hardships of the pandemic and return to profitability.

Chief operations officer Josh Weinstein will replace the 68-year-old Donald who became CEO in 2013 in an effort to turn around the cruise giant.

A 20-year veteran at the cruise line, Weinstein has most recently been overseeing all major operational functions including global maritime, global ports and destinations, global sourcing, global IT and global auditing. He also oversaw Carnival UK, the operating company for P&O Cruises (UK) and Cunard, which he previously managed directly for three years as president.

Like all cruise lines, Carnival Corp has suffered at the hands of the pandemic, and in 2020 cruise ships came under fire for spreading the virus. It sold shares worth $500 million in June last year as it sought to restart its operations after a long break.

The emergence of the Omicron variant also hampered a wider recovery, and in December the cruise line posted a $1.9 billion quarterly loss. Rivals Royal Caribbean and Norwegian Cruise Line meanwhile canceling sailings amid rising fears of further waves.

And after destinations experienced life without megaships, there are now questions over whether this is the end of mass cruising, and how they can adapt to a more balanced and diversified tourism economy.

Salary Questions?

It was unclear if a dispute over Donald’s pay package affected the decision to change leadership, or simply a retirement decision.

This month, Carnival faced a shareholder revolt over Donald’s compensation, with 36 percent voting against the company’s giving the CEO a total package of $15.1 million for the year through November 2021, including a $1.5 million salary, a $6 million bonus, and stock awards that are tied to company performance. The package was a jump from $13.3 million for 2020 and $11.1 million for 2019.

The company said it hopes to return to profitability later this year.

“I am truly humbled to take up the role of CEO and am honored to lead such a talented team of over 100,000 ship and shoreside team members who do such an incredible job in delivering unforgettable, happy vacations to our guests, day in and day out,” Weinstein said. “I have benefitted tremendously from Arnold’s guidance and mentoring, and I would like to thank him, Micky Arison our chairman and the entire boards of directors for their support.”

Carnival’s shares have dropped 34 percent in the past year, closing on Monday at $18.88.

Skift Senior Hospitality Editor Sean O’Neill contributed to this report.

BREAKING: This breaking news story is being updated throughout the day.