Royal Caribbean’s CEO has actually offered to not take a wage through the end of September, the business stated Wednesday, with three other executives taking a 25%pay cut as the coronavirus pandemic triggers a major headache for the cruise market.
The other executives seeing a 25%pay cut include CFO Jason Liberty, Michael Bayley, CEO of Royal Caribbean International, and Lisa Lutoff-Perlo, CEO of Star Cruises.
” These decreases were made in light of the COVID-19 pandemic and the unfavorable financial and functional effects resulting therefrom,” Royal Caribbean said.
Wednesday’s statement comes after Royal Caribbean, along with many of its major rivals, was forced to cease all sailings for the time being
” Cruise lines, as evidenced by the stocks, remain in a world of hurt today without a clear light at the end of the tunnel,” Patrick Scholes, a SunTrust Robinson Humphrey expert, told Company Insider’s Meghan Morris in March
Scholes said that with ships halted, the general public companies might pay their monetary obligations for the next 6 to nine months.
” Under regular scenarios, that’s not completion of the world; here the multitrillion concern is when do ships start cruising again?” he stated.
To make matters worse, it’s possible that cruise lines will not see a single cent of the huge financial assistance package gone by the US federal government in action to the pandemic, thanks to their so-called flags of benefit. Under that practice, lots of cruise lines register their ships in foreign nations to skirt US guidelines, like labor laws.
” It would be very hard for politicians to protect the cruise market getting a possible bailout when they don’t pay United States business taxes,” Steve Wieczynski, an expert at Stifel Financial, said in recent notes to clients.