Call from NCL re: water

[Annmeat]

With NCLH stock prices diving deep to the bottom lately, despite infusion of institutional cash (as suggested) & upbeat analysts' "technical" numbers - CEO & company are going to have to do a lot better than peddling water onboard to boost net earnings.

 

Pissed-off/annoyed/frustrated/happy passengers unable or unwilling or uninterested are not going to form long lines on the ship to buy a 12 oz. highball glass filled with ice for a fountain soda at $3.84 ... or bottled water.

 

Who is to say at this point, whether this summer's Fire Sale with deals like $149 Pacific Coastal 4 nights for a repo are going to be enough with the captive audience to sell more items like real lemonade to compensate.

 

Something else is happening, engines backfired or what - blaming Europe & terrorism aren't going to help with the financial outlook, as NCL remained very firm & positive ahead on its previous calculations.

 

Let's see, maybe it is time to start charging for luggages taken onboard from everyone, perhaps - to help raise operating net. Thoughts :confused:

 

I am a tad sad- I am hearing a lot about fire sales but not one cruise that we can take has decreased in price! I did get a Casino " offer" but can't make any of the dates they offer fit our schedule

[ighten]

How can they even say its a security issue when every major check in port is selling water in 6 litre packs - After the security check - what, have they never been airside in an airport!!

I dont think its a major issue - water is available for free on board and can be picked up at every port for your daytripping..

 

But Bull S information is low- sad and tacky

[RDC1]

How can they even say its a security issue when every major check in port is selling water in 6 litre packs - After the security check - what, have they never been airside in an airport!!

I dont think its a major issue - water is available for free on board and can be picked up at every port for your daytripping..

 

But Bull S information is low- sad and tacky

 

They never said that water was a security threat, they did say that it was an issue because of the top and labor needed to check it during the boarding process.

[RDC1]

They never said that water was a security threat, they did say that it was an issue because of the top and labor needed to check it during the boarding process.

 

it should have said time and labor, not top and labor.

[swedish weave]

You and I are saying the same thing just using different terms. His salary is 1.85 million. The rest are incentive-based, so his total compensation was 32 mil. (stock 10 mil, options 17 mil and other incentives 1.9 mil) And yes, this is easy to find. He has not gotten a raise beyond a normal annual increase. (less than 10%, no where near triple)

 

Salary is not the same as total compensation and his salary has gone up very little...well, little relative to the total. If you see this from my prior post:

 

"he got paid a ton and literally I mean a ton of money last year." That was referring to the 32mil.

 

You can invent some innovative ways to put a spin on a discussion. The fact that NCL is paying him almost 32 million is outrageous and I don't care what they call it.

[abe3]

You can invent some innovative ways to put a spin on a discussion. The fact that NCL is paying him almost 32 million is outrageous and I don't care what they call it.

 

 

They willing to pay him that great. I wouldn't pass down 32 million.

[arock24]

Today I asked a longshoreman on Pier 90 NYC (Gem),"What happens if someone shows up with a case of water or soda"? He said," They (NCL) confiscate it and we drink it"

Edited July 24, 2016 by arock24

[GUT2407]

You can invent some innovative ways to put a spin on a discussion. The fact that NCL is paying him almost 32 million is outrageous and I don't care what they call it.

 

How is it Outrageous, if the company thinks he's worth it that's all that matters.

 

People think what I charge a day is outrageous (I'm not up to 32 mil a year just yet) but I get offered more work than I could do if I was able to work 10,000 days a year.

[dongordon]

My wife cannot stand the Pepsi that NCL provides onboard and only drinks Coke!

What happens if we bring Coke onboard, do they confiscate it or can we pay a "can fee" to bring it onboard? :D

 

I guess we will be forced to drink more alcoholic beverages on our beverage plan!! :D

 

What next NCL?

 

Don

Edited July 24, 2016 by dongordon

[swedish weave]

How is it Outrageous, if the company thinks he's worth it that's all that matters.

 

People think what I charge a day is outrageous (I'm not up to 32 mil a year just yet) but I get offered more work than I could do if I was able to work 10,000 days a year.

 

This discussion started with a comment that a company is responsible to the shareholders.

 

NCLH has never paid any dividends to the shareholders yet they pay Del Rio millions and squeeze every penny they can from the guests.

 

Still think they are fair ???

[NMLady]

My wife cannot stand the Pepsi that NCL provides onboard and only drinks Coke!

What happens if we bring Coke onboard, do they confiscate it or can we pay a "can fee" to bring it onboard? :D

 

I guess we will be forced to drink more alcoholic beverages on our beverage plan!! :D

 

What next NCL?

 

Don

 

As of July 15 you can not bring soda, or water, aboard but will have to leave it behind in port for them to dispose of it.

[RDC1]

This discussion started with a comment that a company is responsible to the shareholders.

 

NCLH has never paid any dividends to the shareholders yet they pay Del Rio millions and squeeze every penny they can from the guests.

 

Still think they are fair ???

 

Not inconsistent with the compensation given to Sheehan.

 

Del Rio's package is $1,837,500 in salary, 1,903,799 in incentive plan.

The rest is 10,276,315 in stock awards and $17,752,083 in option awards.

 

The stock awards and the option awards value are dependent upon future stock value since both are restricted. The end value of those are in alignment with the shareholders and can be considerable reduced if the stock does not appreciate. For example if the stock does not go higher then what it was at when the options were granted that $17,752,083 would end up having $0 value. To get any money from that portion requires that the stock goes up. The $10,276,315 in stock awards do have value (the current price of the stock) but they are restricted and will vest over a period (probably 5 years). So you can consider those more in the $2 mil per year in actual compensation plus stock appreciation starting next year. So actual money received in 2015 was $3.7 mil.

 

If you look at Sheehans compensation over the last two years his total compensation was around 31 million with $16 million in options and 2 million in stock awards. I would expect that he had previous amounts in each category but not as easily available to look up.

 

So Del Rio's compensation for 14,15 total was $34 million with 18 in options, 10 in restricted stock and $4 in salary and bonus

 

Sheehans compensation for his last two full years 13,14 was $32 million with $16 in options, 2 in restricted stock, and 13 million in salary, bonus and other compensation.

 

As such Del Rio's compensation is in line with what was paid for the previos President/CEO

Edited July 24, 2016 by RDC1

[NLH Arizona]

Not inconsistent with the compensation given to Sheehan.

 

Del Rio's package is $1,837,500 in salary, 1,903,799 in incentive plan.

The rest is 10,276,315 in stock awards and $17,752,083 in option awards.

 

The stock awards and the option awards value are dependent upon future stock value since both are restricted. The end value of those are in alignment with the shareholders and can be considerable reduced if the stock does not appreciate. For example if the stock does not go higher then what it was at when the options were granted that $17,752,083 would end up having $0 value. To get any money from that portion requires that the stock goes up. The $10,276,315 in stock awards do have value (the current price of the stock) but they are restricted and will vest over a period (probably 5 years). So you can consider those more in the $2 mil per year in actual compensation plus stock appreciation starting next year. So actual money received in 2015 was $3.7 mil.

 

If you look at Sheehans compensation over the last two years his total compensation was around 31 million with $16 million in options and 2 million in stock awards. I would expect that he had previous amounts in each category but not as easily available to look up.

 

So Del Rio's compensation for 14,15 total was $34 million with 18 in options, 10 in restricted stock and $4 in salary and bonus

 

Sheehans compensation for his last two full years 13,14 was $32 million with $16 in options, 2 in restricted stock, and 13 million in salary, bonus and other compensation.

 

As such Del Rio's compensation is in line with what was paid for the previos President/CEO

Thank you very much for posting factual information about Mr. Del Rio and Mr. Sheehan's compensation in a way that anyone can understand and it certainly seems like Mr. Del Rio's compensation is not out of line, if you compare it to Mr. Sheehan's.

[swedish weave]

Thank you very much for posting factual information about Mr. Del Rio and Mr. Sheehan's compensation in a way that anyone can understand and it certainly seems like Mr. Del Rio's compensation is not out of line, if you compare it to Mr. Sheehan's.

 

Perhaps a more fair comparison would be with the CEO of Carnival. Carnival is triple the market value of NCLH, but the CEO compensation is about a third of NCL's.

 

And I might add that Carnival pays dividends to shareholders.

[RDC1]

Perhaps a more fair comparison would be with the CEO of Carnival. Carnival is triple the market value of NCLH, but the CEO compensation is about a third of NCL's.

 

And I might add that Carnival pays dividends to shareholders.

 

Not necessarily.

 

The Arnold Donald CEO of Carnival received in 2015 $1,000,000 in salary, plus 4,618,950 in non-equity incentive plan compensation, plus $227,000 in other compensation for a total of 5.8 mil in 2015. Plus he has been consistently getting stock awards for the past three year from 5.8 mil in 2013, 3.5 in 2014, and 3.5 in 2015. Since he has been CEO for a while I would suspect from those number that they are probably replacing the stock that vests each year to keep his forward looking incentives constant. So in cash value between maturing stock and cash compensation he probably realized around 9.3 million in 2015 compared to the 3.7 in value that Del Rio received in the same year. Now next Year Del Rio will go up to at least 5.7 mil as his first stock allocation vests.

 

So in terms of actual money taken home he is less getting less then Arnold Donald, but has the potential to catch up in future years if the company does well.

 

Also note that RCL Richard Fain's number seem to be similar to Arnold Donalds.

 

In some ways CEO compensation is a lot like sport contracts. A lot of the number is not realized until future years and may not happen. The reported compensation is a calculated figure based on total value of the package, not the dollars actually received in that year. The first year numbers will be high because they include the initial allocations of stock options and restricted stock, In later years the allocations will be much smaller to preserve the link between compensation and future stock value.

Edited July 25, 2016 by RDC1

[NLH Arizona]

Not necessarily.

 

The Arnold Donald CEO of Carnival received in 2015 $1,000,000 in salary, plus 4,618,950 in non-equity incentive plan compensation, plus $227,000 in other compensation for a total of 5.8 mil in 2015. Plus he has been consistently getting stock awards for the past three year from 5.8 mil in 2013, 3.5 in 2014, and 3.5 in 2015. Since he has been CEO for a while I would suspect from those number that they are probably replacing the stock that vests each year to keep his forward looking incentives constant. So in cash value between maturing stock and cash compensation he probably realized around 9.3 million in 2015 compared to the 3.7 in value that Del Rio received in the same year. Now next Year Del Rio will go up to at least 5.7 mil as his first stock allocation vests.

 

So in terms of actual money taken home he is less getting less then Arnold Donald, but has the potential to catch up in future years if the company does well.

 

Also note that RCL Richard Fain's number seem to be similar to Arnold Donalds.

 

In some ways CEO compensation is a lot like sport contracts. A lot of the number is not realized until future years and may not happen. The reported compensation is a calculated figure based on total value of the package, not the dollars actually received in that year. The first year numbers will be high because they include the initial allocations of stock options and restricted stock, In later years the allocations will be much smaller to preserve the link between compensation and future stock value.

Thanks again, you are so dispelling some of the myths/falsehoods. Edited July 25, 2016 by NLH Arizona

[Lulubelle45]

http://boards.cruisecritic.com/showthread.php?p=50645847

 

Norwegian Pearl Roll Call September 26, 2016

[floridalover5623]

We don't normally travel NCL but this seem a little outrageous. Denying someone bringing on board cans of soda is only money grabbing by NCL. How does someone smuggle liquor in cans marked soda? If I recall correctly Princess proposed something similar a while back & changed their mind.

It'll prove interesting to see how much business is lost by this move.

[sjbdtz]

We don't normally travel NCL but this seem a little outrageous. Denying someone bringing on board cans of soda is only money grabbing by NCL. How does someone smuggle liquor in cans marked soda? If I recall correctly Princess proposed something similar a while back & changed their mind.

It'll prove interesting to see how much business is lost by this move.

 

 

How is preventing somebody from bringing on soda = money grabbing?

 

Denying the ability to bring their own drinks might (LOL) make some people resentful and prone to not only NOT consuming alternative sodas, but also retrenching their other onboard spend.

 

On the other hand, SOMEBODY has to pay the longshoremen to load all of this stuff, and SOMEBODY has to pay the crew to distribute it all to the cabins on turnaround day.

 

I'd bet that some people were abusing the system, and sending cases of water & soda through the process costing NCL time AND money - without even talking about their desire to sell their own product.

 

That time AND money is not a lost profit opportunity, it's a cost center component. If you can cut 5% of the cost of longshoremen and manage to free up an FTE (full-time equivalent) of a crew-member by simply not delivering other vendors' wares, that's a lot of money.

 

 

I think the antecedent to this is enforcing baggage sizes & weights, for the same reason. Trimming costs is the easiest way to increase the bottom line - and if there's a byproduct of potential upsell opportunities, then so much the better.

 

 

I still think NCL could find a work-around to this, by offering a $5 sticker-type voucher for any sealed case of water or soda.... like the corkage fee. Put your sticker on, and your case is authorized for passage.

 

 

 

.

[swedish weave]

How is preventing somebody from bringing on soda = money grabbing?

 

Denying the ability to bring their own drinks might (LOL) make some people resentful and prone to not only NOT consuming alternative sodas, but also retrenching their other onboard spend.

 

On the other hand, SOMEBODY has to pay the longshoremen to load all of this stuff, and SOMEBODY has to pay the crew to distribute it all to the cabins on turnaround day.

 

I'd bet that some people were abusing the system, and sending cases of water & soda through the process costing NCL time AND money - without even talking about their desire to sell their own product.

 

That time AND money is not a lost profit opportunity, it's a cost center component. If you can cut 5% of the cost of longshoremen and manage to free up an FTE (full-time equivalent) of a crew-member by simply not delivering other vendors' wares, that's a lot of money.

 

 

I think the antecedent to this is enforcing baggage sizes & weights, for the same reason. Trimming costs is the easiest way to increase the bottom line - and if there's a byproduct of potential upsell opportunities, then so much the better.

 

 

I still think NCL could find a work-around to this, by offering a $5 sticker-type voucher for any sealed case of water or soda.... like the corkage fee. Put your sticker on, and your case is authorized for passage.

 

 

 

.

 

NCL can also alleviate this problem and reduce expenses by chasing away customers with their money grubbing antics.

Edited August 2, 2016 by swedish weave

[floridalover5623]

How is preventing somebody from bringing on soda = money grabbing?

 

Denying the ability to bring their own drinks might (LOL) make some people resentful and prone to not only NOT consuming alternative sodas, but also retrenching their other onboard spend.

 

On the other hand, SOMEBODY has to pay the longshoremen to load all of this stuff, and SOMEBODY has to pay the crew to distribute it all to the cabins on turnaround day.

 

I'd bet that some people were abusing the system, and sending cases of water & soda through the process costing NCL time AND money - without even talking about their desire to sell their own product.

 

That time AND money is not a lost profit opportunity, it's a cost center component. If you can cut 5% of the cost of longshoremen and manage to free up an FTE (full-time equivalent) of a crew-member by simply not delivering other vendors' wares, that's a lot of money.

 

 

I think the antecedent to this is enforcing baggage sizes & weights, for the same reason. Trimming costs is the easiest way to increase the bottom line - and if there's a byproduct of potential upsell opportunities, then so much the better.

 

 

I still think NCL could find a work-around to this, by offering a $5 sticker-type voucher for any sealed case of water or soda.... like the corkage fee. Put your sticker on, and your case is authorized for passage.

 

 

 

.

It's money grabbing no matter how you look at it. The only reason that people can't carry on their own liquids is to sell more of their overpriced soda, water & juice to there captive passengers.

btw-I've always carried my own. I don't even check luggage when travelling on Princess. Not sure if NCL allows that or not.

[Love.II.Cruise]

If this is a HUGE CHANGE to you I hate to see what you think when something that really is huge comes along. What did all you people do before marketers convinced you that you just could not do without water prepackaged in a sealed bottle? The definition of gullible in the dictionary has the reference "see bottled water"... I think I am going to start selling bagged air and sell it to people gong on cruises.

 

OMG!!! I just spit up my non-bottled tap water on my computer screen from laughing so hard! :eek::D

Edited August 2, 2016 by Love.II.Cruise

[sjbdtz]

It's money grabbing no matter how you look at it. The only reason that people can't carry on their own liquids is to sell more of their overpriced soda, water & juice to there captive passengers.

btw-I've always carried my own. I don't even check luggage when travelling on Princess. Not sure if NCL allows that or not.

 

 

It's not the only reason. If you had read the post you replied to, I set out a scenario where selling more liquids to people was not the objective.

 

 

.

[swedish weave]

It's not the only reason. If you had read the post you replied to, I set out a scenario where selling more liquids to people was not the objective.

 

 

.

 

Not very convincing !!!!

[Cloudyrain]

I am beginning to wonder if this is an American thing.

 

In Britain (excluding London, that's like America!) if you ask for a Coke you might get offered Pepsi and you shrug your shoulders. You might even get offered rola-cola which you accept with a frown. You can get diet versions and that's about it. Cherry coke is like gold dust and water is just water - from a tap, and if you're lucky they will run it first! If you want crisps there are usually 3 choices of flavours.

 

We went to New York and went into a shop to get a drink and some crisps. About 40 minutes later we walked away empty handed. I don't know how you guys handle all these decisions, and don't get me started on milk - that's like a whole new language.

 

NCL UK Customer Services are probably having a right old laugh now about this new policy, sat there without a call, whereas poor NCL America Customer Services are all pulling treble shifts just to deal with the backlog :)

Edited August 2, 2016 by Cloudyrain
Repetition of words!