Ex-BA chief Alex Cruz joins NCLH board in shake-up

Norwegian Cruise Line Holdings has unveiled a significant board shake-up including the appointment of five new directors and the departure of three existing members.

The new appointments include former British Airways chairman and chief executive Alex Cruz, who will be the lead independent director for the parent company of Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises.

NCLH also confirmed a “cooperation agreement” with activist investor Elliott Investment Management after its recent criticism of the company’s governance and performance.

From March 31, the NCLH board will comprise nine members, eight of whom are independent. The company’s recently-announced president and chief executive John Chidsey has been appointed chairman.

In addition to Cruz, the new board members are former Disney Experiences chief financial officer Kevin Lansberry; former Bain Capital managing partner Steve Pagliuca; Brian MacDonald, chief executive of data and technology firm CDK Global; and Jonathan Cohen, chief executive of Hepco Capital Management.

NCLH said the appointments “reaffirm the company’s commitment to board refreshment and shareholder value creation” as it confirmed current directors Stella David, David Abrams, Harry Curtis and Mary Landry had resigned.

Under the cooperation agreement, Elliott has “agreed to customary standstill and voting commitments, among other provisions”.

Chidsey said: “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.”

Elliott partner John Pike and portfolio manager Bobby Xu said: “As NCLH’s largest investor, we see the potential for significant value creation ahead under John’s leadership, and we believe the experience and credibility of this newly appointed board will help restore investor confidence and return the company to best-in-class financial performance.

“We are encouraged by our constructive engagement with John and we look forward to working with him and the rest of the board as they drive the changes necessary to meaningfully improve operational execution and capitalise on the substantial opportunities at NCLH.”