Royal Caribbean CEO to Forgo Paycheck Through September
To help Royal Caribbean survive the coronavirus outbreak, the cruise line’s CEO announced he would refuse his paycheck through at least September.
According to CNBC.com, Royal Caribbean CEO Richard Fain announced he would take a 100 percent reduction of his $1.1 million salary, but it was unclear if he would refuse the bonuses, non-cash payouts and other income he received when he made around $25 million in 2018.
As for the other key executives at the cruise line, CFO Jason Liberty, Royal Caribbean International CEO Michael Bayley and Celebrity Cruises CEO Lisa Lutoff-Perlo volunteered to take a 25 percent pay cut.
“These reductions were made in light of the COVID-19 pandemic and the negative financial and operational impacts resulting therefrom,” a Royal Caribbean spokesperson said in a statement.
The cruise company also announced its board of directors would give up all cash retainers and fees payable for board and committee service through September 30.
Fain’s announcement about pay reduction for executives came just days after the company revealed it would extend the suspension of cruise operations through at least May 11, with Alaska, Canada and New England sailings delayed until at least July 1.
Royal Caribbean said the decision to cancel all sailings was a result of port closures and travel restrictions caused by the viral pandemic. Customers impacted by the decision will receive full credit fare that can be transferred to a future sailing date in 2020 or 2021.
The cruise company also revealed the extension of its Cruise with Confidence program through at least September 1. The program allows travelers to cancel up to 48-hours prior to their departure date in exchange for a 100 percent Future Cruise Credit for redemption on sailings departing before January 1, 2022.
Earlier this week, the United States Coast Guard announced all cruise ships would be forced to stay at sea indefinitely and treat any passengers and crew members with coronavirus offshore.
In addition, the Royal Caribbean Group announced Tuesday it had launched a dedicated program created to assist thousands of travel agents and advisors in the United States deal with the impact of the coronavirus outbreak.