Carnival CEO Arnold Donald resigns as the cruise industry wants to freshen up

Carnival's announcement on Tuesday that Arnold Donald would step down as CEO of the world's most significant cruise line came after some investors pushed back a shareholder meeting earlier this month on indicators tied to the 2021 $15 million 67 percent compensation package, Source familiar with the situation, news. Said.

"This is the final of an era," said one investor who asked not to be named. The company could not be reached to answer to a request for comment.

Donald, who became vice president on Aug. 1, took over as chief executive nine years ago, 2 of which were spent keeping Carnival afloat during the Covid-19 pandemic by taking billions of dollars in debt and stock.

While Donald has undoubtedly played a significant role in reviving the cruise industry from the depths of the pandemic, Carnival shares are struggling to compete with peers like Royal Caribbean, where industry veteran Richard Fein stepped down as chief executive about four months ago. Managing Director after more than 33 years. The 72-year-old man remains chairman. As a result, Carnival shares are down nearly 13% in 2022, slightly more than the 11.5% drop for the S&P 500, and down more than 35% over the past 12 months. In contrast, Royal Caribbean shares are up nearly 3% year-on-year and are down only about 9% over the past 12 months.

Changes in leadership at Carnival and Royal Caribbean will see new guards guide the shipping giant through the next stage of recovery. Currently, at Carnival, chief operating officer Josh Weinstein, 48, has been selected as the new chief executive. At Royal Caribbean, one-time CFO Jason Liberty, 46, was at the forefront earlier this year.

In the coming weeks, shareholders will want to hear from Weinstein, who has been with Carnival for 20 years, about his cruise line plans and how they might differ from Donald's approach.