Norwegian Cruise Line Holdings overhauls Board of Directors

Norwegian Cruise Line Holdings (NCLH) has revamped its Board of Directors, adding five new members under a cooperation agreement with activist investor Elliott Investment Management L.P.

Starting Tuesday (March 31), the company will welcome the following independent directors:

• Alex Cruz, former Chairman and CEO of British Airways
• Kevin A. Lansberry, former EVP and CFO of Disney Experiences
• Steve Pagliuca, former Managing Partner and Co-Chairman of Bain Capital
• Brian P. MacDonald, President and CEO of CDK Global
• Jonathan Z. Cohen, Founder, CEO and President of Hepco Capital Management LLC

In addition, President and CEO John W. Chidsey will take on the role of Chairman, while Cruz has been named Lead Independent Director.

At the same time, current board members Stella David, David M. Abrams, Harry C. Curtis, and Mary E. Landry have stepped down as the company shifts toward a new strategic direction.

READ MORE: “Significant untapped potential”: Activist investor calls for changes at NCLH

“On behalf of the entire Board, I thank Stella, David, Harry and Mary for their years of dedicated service to the Board and to shareholders, as well as their meaningful contributions to the Company’s development. We respect and appreciate their decision to step down at this time in the best interest of the Company and its shareholders. Their experience and insights were very beneficial as the Company pursued strategic growth initiatives and navigated changing industry conditions,” said Zillah Byng-Thorne, Chairperson of NCLH’s Nominating and Governance Committee.

“As part of our ongoing Board recruitment process and with input from Elliott, we are pleased to welcome our new directors. Each brings a fresh perspective and valuable expertise befitting a leading company like NCLH. Looking ahead, the Board remains committed to enhancing shareholder value and overseeing improved execution by our new management team.”

Mr. Chidsey, president and Chief Executive Officer of NCLH, added: “We are moving with urgency to strengthen the business and enhance execution.”

“There are significant opportunities to deliver stronger performance and sustainable value for our shareholders. Our award-winning brands, loyal guests and dedicated team form a strong and enduring foundation, and I look forward to working closely with our Board to build on that foundation as we continue delivering exceptional vacation experiences for our guests around the world.”

The shakeup comes after Elliott Investment Management called for major changes at the company, claiming in an open letter than NCLH is undervalued with “significant untapped potential,” while faulting the company for falling behind its competitors. 

The update also comes not long after NCLH announced an order with Fincantieri for three new ships – one for each of its brands.

The order increases Norwegian Cruise Line’s upcoming ship class and Oceania Cruises’ Sonata class to five vessels each, while expanding Regent Seven Seas Cruises’ Prestige class to four ships.

The three vessels are scheduled for delivery in 2036 and 2037.

Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.