Norwegian Cruise Line Holdings Sets CEO Base Salary at $1.715M, Grants $48M Equity Award
Norwegian Cruise Line Holdings appointed John W. Chidsey as CEO with a $1.715M base salary and a fixed $2.9M bonus for 2026, escalating to a 175% salary bonus target in 2027. He received 2,139,892 front-loaded restricted share units worth ~$48M, split into PSUs and RSUs vesting over four years.
1. CEO Appointment and Salary Terms
John W. Chidsey joined as President and CEO effective February 12, 2026 under an employment agreement setting an annual base salary of $1.715M and a fixed $2.9M bonus for fiscal 2026, with a target annual bonus of 175% of base salary commencing in 2027.
2. Equity Awards and Value
As an inducement, Chidsey received a one-time grant of 2,139,892 front-loaded restricted share units valued at approximately $48M, comprising 1,172,638 performance share units valued at $28.8M and 967,254 RSUs valued at $19.2M.
3. Vesting Schedules and Performance Conditions
The RSUs vest in four equal annual installments beginning March 1, 2026, while PSUs cliff vest at the end of a four-year period based on absolute total shareholder return CAGR with thresholds at 5%, 10% and 20% delivering 50%, 100% and 200% vesting, with linear interpolation for intermediate results.
4. Approval and Governance Alignment
The Compensation Committee approved the inducement under the NYSE Rule 303A.08 exemption, structuring the front-loaded award to align Chidsey’s incentives with long-term shareholder value while deferring any further equity grants until 2030.