Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) announced it has entered into employment and equity agreements with President and Chief Executive Officer John W. Chidsey on March 26, 2026.

The cruise company appointed Chidsey as President and CEO on February 12, 2026. Under the employment agreement, he will receive an annual base salary of $1.715 million and participate in an annual bonus plan starting with fiscal year 2027, with a target bonus opportunity equal to 175% of his base salary.

For fiscal 2026, Chidsey's annual bonus is fixed at $2.9 million, which the company states is below his target annual bonus amount.

As part of his compensation package, Chidsey received a one-time restricted share unit award with an intended value of approximately $48 million. The award consists of 2,139,892 restricted share units structured as a four-year front-loaded grant.

The equity award includes 1,172,638 performance share units valued at approximately $28.8 million and 967,254 restricted share units valued at $19.2 million. The restricted share units will vest in four equal annual installments starting March 1, 2027. The performance share units will vest after four years based on the company's total shareholder return compound annual growth rate targets.

For the performance units to vest, the company must achieve a minimum 5% total shareholder return compound annual growth rate, which would result in 50% vesting. Full vesting occurs at 10% growth, while 200% vesting is possible at 20% or higher growth rates.

The compensation committee does not intend to grant Chidsey additional equity awards until 2030, according to the company's statement. The awards were granted outside the company's standard equity incentive plan under NYSE employment inducement exemption rules.

Norwegian Cruise Line Holdings operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises with a combined fleet of 35 ships.