Fain elected to forgo his base salary from April through September, so he received $645,000, compared to $1,276,923 in 2019. He also elected to decline the $3m cash bonus he was entitled to. The value of his stock awards rose to $11.17m from nearly $8.7m. 'Other compensation' of $112,478 included an auto lease, life insurance, a retirement savings plan and further benefits.
Compensation considerations in a 'black swan' year
In a proxy ahead of Royal Caribbean Group's June 2 shareholders meeting, the compensation committee elaborated on its decisions during a 'black swan' year. The committee said management took aggressive steps to protect the health and safety of guests and crew, worked effectively to develop protocols and procedures and control costs, established the highly regarded Healthy Sail Panel and protected and bolstered liquidity. The focus was on accomplishing these goals with minimal dilution to shareholders.
'We believe that these proactive actions by management have led to the Royal Caribbean Group preserving shareholder value particularly well during this extraordinary period, as well as being seen as a leader in our industry,' the committee said.
Michael Bayley, president and CEO, Royal Caribbean International, was the second most highly compensated named officer. His 2020 package was valued at $7.44m, up from $7.05m in 2019. Bayley elected for a 25% salary cut from April through September, receiving $866,346 for the year. Stock awards were worth $4.94m, up from $4.06m. His bonus was $1.43m, down from $1.8m. 'Other compensation' was $116,244.
EVP and CFO Jason Liberty's compensation totaled $5.65m, up from $5.42m. He, too, took a 25% part-year salary cut, taking home $818,798. Stock awards were valued at $3.23m, up from $2.62m. His bonus was $1.41m, compared to $1.73m in 2019. 'Other compensation' was $100,429.
The total compensation for Lisa Lutoff-Perlo, president and CEO, Celebrity Cruises, rose to $4.75m from $4.43m. Lutoff-Perlo also elected for a part-year 25% salary cut, earning $710,558. Her stock awards were worth $2.72m, up from nearly $2.28m. Her bonus was flat at $1.09m. 'Other compensation' was $96,854.
Harri Kulovaara, corporate EVP maritime, received total compensation valued at $3.6m, up from $3.42m. His salary was 803,846, up from $761,923, while stock awards were worth $1.48m, compared to $1.14m in 2019. His bonus was $830,250, down from $870,446. 'Other compensation' was $107,746.
The company delivered three ships during 2020, and Kulovaara is entitled to a discretionary bonus of $150,000 per ship, however his bonus was reduced to $300,000 in the aggregate.