Arnold Donald stepping down from CEO position of Carnival Corp

Table Of Content

• : First new build ships
• Exclusive: A Time of Transition as Arnold Donald Prepares to Step Down as Carnival Corp. CEO
• How did Arnold Donald arrive at Carnival Corp.?
• Arnold W. Donald
• Josh Weinstein takes over as CEO of Carnival Corporation
• Time to have 'the next generation step in': Carnival Corp.'s Arnold Donald stepping down from CEO role
• Learn About Credit Cards

Carnival Corporation's ships sailed just 69% full during the three-month period ending on May 31, well below the 100% or more that is typical for the company (reported occupancy on ships can surpass 100% when more than two people stay in some cabins). Carnival Corporation is perhaps best known as the company behind Carnival Cruise Line — the world's second-largest cruise brand. But it also operates eight other major cruise brands, each offering something a little different. A 20-year veteran of Carnival Corporation & plc, Weinstein has a long history of success in critical senior-level roles for the company. In his most recent assignment for the past two years as Carnival Corporation & plc’s Chief Operations Officer, Weinstein oversaw all major operational functions including global maritime, global ports and destinations, global sourcing, global IT and global auditing.

: First new build ships

Norwegian Cruise Line, for instance, recently said it would implement social distancing and temperature checks for passengers when it restarts cruising. But Donald said Carnival Corp. brands were waiting to see how the situation evolves before committing to specific measures. As the head of the world's largest cruise operator, Donald quickly became the face of the industry at the height of the pandemic when numerous ships with Covid-infected guests and crew were left stranded on board for days on end. Perhaps more significantly, cruise lines historically haven't seen as severe a downturn in business during recessions as other travel providers.

Carnival's Christine Duffy inducted into CLIA Hall of Fame - Seatrade Cruise News

Carnival's Christine Duffy inducted into CLIA Hall of Fame.

Posted: Sat, 20 Apr 2024 02:26:43 GMT [source]

Exclusive: A Time of Transition as Arnold Donald Prepares to Step Down as Carnival Corp. CEO

The man, who never worked in the cruise industry before joining Carnival (though he was on the board), has an easygoing manner, a deep laugh and a way of making even the most complex topics accessible to anyone. In Donald's five-year tenure as CEO, Carnival's stock price nearly doubled, reaching an all-time high of $72.70 per share in January 2018. Since then, shares have retreated owing in part to the pandemic, trading at $17.41 per share as of Wednesday's close.

How did Arnold Donald arrive at Carnival Corp.?

Donald said he believes this kind of achievement -- happy, fulfilled employees -- ultimately is what leads to company success, from creating joyful vacation experiences to exceeding guest expectations and delivering for shareholders. Perhaps the best-known is Princess's Medallion, a concept Donald himself introduced to the world as keynote speaker at the Consumer Electronics Show in 2017. Along with then-Princess President Jan Swartz (now head of Holland America Group) and the man largely behind the technology, John Padgett, now president of Princess, Donald talked about how Medallion would change the industry. Donald's approach has paid off with a number of innovations for the brands under Carnival Corp.

Centers for Disease Control and Prevention (CDC) would drive the timetable for a return to cruising for his company's nine brands, which include Carnival Cruise Line, Princess Cruises, Holland America, Cunard Line and Seabourn. Donald's final two years were spent keeping Carnival Corp. afloat during the pandemic, during which the company raised $29 billion in new capital. It also embarked on an unprecedented fleet-reduction program, removing 19 of its oldest ships. Donald told the audience that his biggest challenge coming into the job was getting Carnival's nine independent brands to collaborate.

Carnival President Christine Duffy Honored with CLIA's Lifetime Award - Cruise Industry News

Carnival President Christine Duffy Honored with CLIA's Lifetime Award.

Posted: Fri, 19 Apr 2024 15:50:03 GMT [source]

In a conference call for Wall Street analysts, Donald listed his priorities as consistently delivering on the promise of an exceptional vacation, expanding the appeal of Carnival brands globally and driving returns on invested capital higher over time. Donald, 58, joined the board in 2001 and is said to have taken an active interest in Carnival's various brands. He had a 20-year career running divisions of the chemical giant Monsanto Co. and became CEO of Merisant, a sweetener company that was spun off from Monsanto in 2000. But only "when it's the right time and when we can do it confidently from a public health standpoint."

In this capacity, he is responsible for overseeing all of Carnival Cruise Line’s marine operations, including nautical and technical operations, environmental compliance and safety. Prior to joining Carnival, he served as managing director of Carnival Maritime, the marine service unit of the Costa Group in Hamburg, Germany. Jim Heaney is Carnival Cruise Line’s Executive Vice President of Finance, Planning and Technology as well as Chief Financial Officer.

Time to have 'the next generation step in': Carnival Corp.'s Arnold Donald stepping down from CEO role

Ken Tate joined Carnival Cruise Line as vice president of revenue management in 2012 and was promoted to his current position, executive vice president and chief commercial officer, in 2018. In this capacity, Tate is responsible for revenue management and ship deployments, as well as trade and direct sales channels, including the pre-cruise contact center. Recently, Donald helped the company and its brands successfully navigate the global pandemic, well positioning the company for the future. The company expects each of its nine leading cruise line brand’s full fleets to operate guest cruises in 2022, following what has been an extended pause.

That said, Donald was upbeat about the future of cruising, noting that just 30 million people in the world took a cruise last year. By comparison, there are about 500 million people in the world that take a vacation annually, he said. "In a matter of weeks, I think, more than months, we're going to have a lot more knowledge so we can develop protocols and regimens that mitigate the risk of (coronavirus) spread both shoreside and then, of course, that can be transferred to a cruise." Speaking with The Points Guy founder and CEO Brian Kelly, Donald suggested that regulatory agencies such as the U.S.

Since 2020, Weinstein has reported directly to Donald as the chief operations officer for the company and also the head of its U.K.-based cruise lines. The new president and CEO of cruise giant Carnival Corporation — he takes the reins today — is confronting a business that has been turned upside down by the COVID-19 pandemic. Once enormously profitable, the parent company of nine cruise brands has been hemorrhaging money for two straight years.

As president, she leads a company with a fleet of 24 ships, sailing nearly six million guests annually and employing more than 40,000 people who hail from 120 nations around the globe. Christine has served the company in this role since 2015 after a successful tenure as president and CEO of the Cruise Lines International Association (CLIA), which represents the $120 billion global cruise industry. When Donald served as President, he spearheaded the operation of the largest leisure and travel company in the world.

One of Weinsteins first priorities will be to complete the safe restart of the fleet and restore the company to health. The Carnival Corporation faces a mountain of debt (35 billion euros at the end of May). We have to remember that back in 2020 the company had capital raises of $5.75 billion in junk bonds to help it survive in the short term, though the sailing was far from smooth. Donald grew up in New Orleans, the son of a carpenter, and graduated from Carleton College.

Authorities in many other countries from Canada to Australia also have put cruising on hold for the time being. He also declared his commitment to being "best in class for compliance," and since 2016 Carnival has invested more than $350 million in energy-efficiency improvements and announced the goal of being net carbon-neutral by 2050. It was the first company to launch cruise ships powered by liquefied natural gas, which is considered more environmentally friendly than traditional bunker fuel.

The company is still recovering after having taken on debt during COVID-19, but Donald has confidence that things are moving in the right direction. That the company would be in good hands as it approaches the next phase played into Donald's decision to step down August 1. Donald says there's no perfect time to do it, but he feels comfortable because the fundamentals are in place. Weinstein, 48, has spent the past two decades with Carnival, working as assistant general counsel, treasurer, president of Carnival U.K. Donald saw his talent early on and identified him as someone who could have a great impact on the business.

"But I'm fairly certain we're not the only ones that didn't get this one right. I mean, from a modeling perspective and thinking about the impact, there's [only] so much you can do and plan for." Any ship orders that are to come are likely to be for delivery several years into the future, he suggests. "The onboard experience has to match what that promise is, and if we do that well, we are going to end up with [cruiser ratings] off the chart," he says.