Richard Fain Adam Goldstein Royal Caribbean CruisesRoyal Caribbean President and Chief Operating Officer (COO) Adam Goldstein (photo, to the right) sold 120,000 shares of his company’s cruise stock on August 2 and 3, 2017.  The stock was sold at an average price of $118.21 for a total sale of $14,185,200.00, according to the SEC.  

This follows the sale of RCL stock by CEO Richard Fain earlier in the week, where he collected $24,406,075.98. Cruise executives Goldstein and Fain, who often sell big blocks of company stock in tandem like this, together sold over $38,500,000 in RCL stock last week. 

Following the sale, COO Goldstein still owns 191,252 shares of RCL stock, valued at $22,607,898.92. The sale was disclosed in a document filed with the SEC

After the sales last week, Mr. Goldstein and Mr. Fain now own over $134,000,000 of RCL stock.

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Photo credit: Royal Caribbean press center.

Adam GoldsteinRoyal Caribbean’s Adam Goldstein was on FOX Business’s @MorningsMaria yesterday. The FOX analysts questioned Mr. Goldstein after the terrorists’ attack on the airport and subway in Belgium yesterday.  

Mr. Goldstein, the President and Chief Operating Officer of the cruise line, explained that his company makes a lot of effort into its security. Royal Caribbean’s cruise ships call on approximately 500 ports annually. Like other companies, it makes judgments based on the security information it has received prior to calling on a port. Occasionally, it will decide that it is not in the best interests of the cruise line and its guests to go to a particular port, like the recent case of Bali which its Celebrity Solstice and Royal Caribbean Radiance of the Seas  avoided.

Most places Royal Caribbean sails to are "absolutely safe," Mr. Goldstein claims.

He said that after the terrorist attacks last year in Paris, there was a "brief" decline in business of a week or two from Northern Europe countries. He said the effect on his cruise line business was "de Royal Caribbean Jim Cramerminimis."  He does not expect anything different after this latest attack in Brussels.

The FOX News panel also questioned Mr. Goldstein on the effect of the Zika virus on bookings. He also downplayed the effect of this serious medical problem, which is believed to cause abnormally underdeveloped heads (microcephaly) in newborn children.

Mr. Goldstein said: "We are not aware that we ever saw any sort of impact on the business and it doesn’t seem to be a conversation today."

This is an interesting perspective. Yesterday, another financial show on CNBC, Jim Cramer’s MAD MONEY, suggested that although cruise lines deny that the Zika virus has affected their operations to date, it will severely impact cruising in the coming months

You can hear Mr. Goldstein below.

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Richard Fain Adam Goldstein Royal Caribbean Cruises President and Chief Operating Officer (COO) Adam Goldstein sold 90,000 shares of the cruise line’s stock today.

Mr. Goldstein sold the shares at $98.88 per share for a total value of $8,898,804.

Mr.Goldstein last sold RCL stock in July when he sold 4,184 shares at at $91.08 per share for a total value of $381,094.19.

At that time, he joined other cruise line executives dumping RCL stock. Royal Caribbean chairman Richard Fain sold 151,032 shares of his cruise line’s stock for $13,650,151 at an average price of $90.40 a share. Royal Caribbean’s General Counsel and Chief Compliance Officer Bradley Stein sold 2,402 shares of the company stock for for a total value of $218,748.70. These insider traders sold $14,249,993 of company stock last summer.

October 27, 2015 update: Royal Caribbean Chairman & CEO Richard Fain sold 80,516 shares yesterday. The Insider Trading Report said that the insider selling transaction was disclosed on October 26, 2015 to the Securities and Exchange Commission. The shares were sold at $98.80 per share for a total value of $7,955,335.00. Together, cruise executives Fain and Goldstein sold $16, 854,139 worth of Royal Caribbean stock yesterday and over $30,000,000. since July. 

According to the DFN, "following the completion of the transaction, the chief operating officer (Mr. Goldstein) now directly owns 253,153 shares in the company, valued at $25,031,768.64."

October 29, 2015 updateRoyal Caribbean’s Vice President Harri U. Kulovaara reportedly sold 8,228 shares of RCL stock on October 27th at an average price of $100.32, for a total of $825,432.96.

Royal Caribbean Cruise StockYesterday, Royal Caribbean chairman Richard Fain sold 151,032 shares of his cruise line’s stock for $13,650,151 at an average price of $90.40 a share. President and Chief Operating Officer Adam Goldstein sold 4,184 shares at at $91.08 per share for a total value of $381,094.19. Royal Caribbean’s General Counsel and Chief Compliance Officer Bradley Stein sold 2,402 shares of the company stock for for a total value of $218,748.70.  In sum, these insider traders sold $14,249,993 of company stock.

A little over 10 days earlier Royal Caribbean’s Freedom of the Seas burst into flames as the cruise ship approached Falmouth, Jamaica. The ship burned for one and one-half hours and destroyed all of the insulation around the exhaust stack from the bottom deck to the fifteen deck. Many passengers, crew members and maritime experts believe that the fire may have started due to the installation of a scrubber system on the cruise ship and the welding process to accomplish the work. Royal Caribbean is not saying, of course. 

The cruise lines has also been criticized for downplaying the fire, saying that it was just a "small fire" which was contained in the lower mechanical spaces and it was quickly extinguished, all patently false statements as we have demonstrated in video and photographs. To make matter worse, the cruise ship sailed onto the next port without a post-fire inspection by the flag state (Bahamas) or the classification society. This ship never should have sailed on without a rigorous inspection after the fire. The photographs clearly show that the ship sustained major damage. The photographs and first hand observations by the crew confirm that the fire destroyed the insulation around the exhaust stack and this presented a grave potential danger to the ship’s passengers and crew. 

My opinion is that the Royal Caribbean cruise executives effectively misled the public about the fire in order to maintain the stock’s improved performance. The company shares have rallied 46.38% in the past year. On July 31, 2015, the shares had rallied to one year high of $90.88 compared to a one year low on October 15, 2014 of $52.32.

If the executives had shut the ship down in Jamaica for the mandatory SOLAS inspection, this would have resulted in tens of millions of dollars spent by the company on lodging, airfare of all passengers back to Miami and cruise refunds to over 4,000 people which would have had a material negative effect on the company’s stock.  Did the executives put their financial interests ahead of passenger and Royal Caribbbean Freedom of the Seas Firecrew safety? Absolutely they did, in my opinion. 

What do these executives really think about the stock value now that the fire is out and the cruise line has dodged, so far, a publicity fall-out?  One analyst said that "Mr. Richard’s trade could mean only one (thing): that he’s a pessimist when it comes to the Company’s prospects and its stock price."

Fain & company bamboozled the public with the "small fire" hoax. I suspect that the executives thought that it was time to cash out and put some more millions in their accounts before the truth comes out. 

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Interested in this issue? Read Cruise Executive Richard Fain Hits the Jackpot Again.

Photo Credit: Bottom – Facebook

According to the SEC, Royal Caribbean CEO Richard Fain (below right) sold 87,488 shares of his RCL stock at an average price of $76.41, for a total value of $6,684,958.08.

After the transaction, cruise executive Fain still owns 1,139,613 shares of his cruise line stock valued at approximately $87,077,829.33.

I wrote a similar article last December entitled Royal Caribbean Executive Cashes In Again about Royal Caribbean’s Chief Operating Officer Adam Goldstein unloading 90,000 shares of Richard Fain Royal Caribbean cruise executive RCL stock. COO Goldstein sold a small portion of his RCL stock at an average price of $77.31 for $6,957,900.00. Following the the sale, he still owns 310,724 shares of his cruise stock, valued at approximately $24,022,072.

All of this is peanuts compared to the vast wealth of Carnival’s Micky Arison who recently sold $433,700,000 worth of Carnival stock.

The cruise business is like running a crooked bootlegging business in the 1930’s. There’s no taxes to pay, the feds leave you alone, and the money rolls in by the boatloads. The profits are enormous. For the cruise executives, it must be liking hitting the jackpot every single night.

I curious to hear from the crew members of these two cruise lines regarding what they think these cruise executives have done to benefit the hard-working crew?

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Photo Credit: Flickr – United Way of Miami-Dade

Adam Goldstein Royal CaribbeanI’ve written many articles about the rich-get-richer schemes of cruise executives: paying the crew members a pittance, making the crew work for 10-to-12 hours a day 6-to-8 months without a single day off, firing hundreds of office employees when the stock drops, and so forth and so on.

Well you can add this article to the list.

The Securities & Exchange Commission revealed that Royal Caribbean’s Chief Operating Officer Adam Goldstein unloaded 90,000 shares of the company’s stock yesterday. Goldstein sold a small portion of his RCL stock at an average price of $77.31 for $6,957,900.00. Following the the sale, he still owns 310,724 shares of his cruise stock, valued at approximately $24,022,072.

I last wrote about cruise executive Goldstein’s stock sales this summer – The Rich Get Richer: Cruise Executive Goldstein Unloads $2,599,935.36 of Royal Caribbean Stock.

Goldstein caused an uproar in August when the cruise line announced that it was charging kids $10 to have breakfast with Shrek.

Now you can understand where all those nickels and dimes go – into the cruise executives’ pockets.

 

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Photo Credit: Royal Caribbean Press Center

An article by Cruise Critic titled No More Free Breakfasts caught my eye today.

Cruise Critic says that Royal Caribbean is adding a $10 surcharge for kids and parents to dine with the cruise line’s DreamWorks characters at breakfast on the Oasis, Allure, Freedom, Liberty, Voyager, and Mariner of the Seas.

According to Cruise Critic, “character breakfasts” have been free since Royal Caribbean first launched them in 2010.

Dreamworks Character Royal CaribbeanHowever, starting September 1st, the cruise line will charge the fee to any passenger over 5 years old.

The first three comments on Cruise Critic summed up my thoughts perfectly:

“I’m glad my grandson was able to do the breakfast last year. RCCL is getting greedy.”

“Disappointed with RCCL. More nickel and dimeing . . .”

“Just another way to nickel and dime you . . .”

For a mom and dad and with 2 kids over  5 years old, the cruise line charge will come to $40 a day to have breakfast with Shrek (photographed with Adam Goldstein).

It is particularly greedy for Royal Caribbean to nickel and dime their little guests considering that just last week we reported that cruise CEO’s Fain and Goldstein have a combined net worth over $100,000,000 on their cruise line operations and are getting richer.

I’d be tempted to move up to Disney Cruise Line and have have my kids meet and greet Micky Mouse and Cinderella for free.

 

Note: The Royal Caribbean Blog first reported on the charge.

Photo Credit: Royal Caribbean Press Center

Media reports say that Royal Caribbean Cruises Chief Operating Officer (COO) Adam Goldstein sold 42,152 shares of his cruise company’s stock yesterday.

The shares were sold at an average price of $61.68 for $2,599,935.36.

COO Goldstein still owns 370,724 shares of Royal Caribbean stock, valued at $22,866,256.

Royal Caribbean announced its earnings results on Thursday. The cruise line reported revenue of $1.98 billion for the quarter. The company’s quarterly revenue was up 5.2%.  

Royal Caribbean We last reported on Mr. Goldstein in February when he sold 44,256 shares of Royal Caribbean stock at an average price of $52.96, for a total transaction of $2,343,797.76.  

What do the hard working crew members and the loyal shore-side cruise employees think of all of the money Mr. Goldstein is raking in? 

The cruise line pays a minimal salary to Royal Caribbean waiters and cabin attendants of only $50 a month; the cruise passengers pay tips to the waiters and stewards but the cruise line is scooping up much of the tips to pay other crew member’s salaries. Employees like utility cleaners earn a pittance of around $550 a month (with no tips) working around 11-12 hours a day, every day of the month during contracts that are 6-8 months long.

In September of last year, Royal Caribbean fired over one-hundred employees in its corporate offices in order to increase profits. You can read about that here: Loyal to Royal? Royal Caribbean Axes 100 Jobs in Corporate Headquarters.

What’s the saying? The rich get richer, the poor get poorer.

Effective Monday May 5, 2014, Royal Caribbean will create a new risk management department which will be managed by a certified public accountant, Tom Burke. Mr. Burke joined the cruise line in 2003 and most recently worked as the Vice President of Audit and Advisory Services. He was previously a manager at the accounting firm KPMG in Miami.

The creation of the new risk management department will require the reshuffling of a number of in-house lawyers and employees of the cruise line’s crew medical department.

Claims handling and litigation matters are currently handled by the company’s legal department managed by General Counsel Bradley Stein. With that responsibility being transferred to Mr. Burke Adam Goldstein President Royal Caribbean Cruisesnext week, the Associate Vice President of Litigation, Paul Hehir, will be assigned to the newly created risk management department. He will manage five in house lawyers, six crew claims adjusters, and four passenger claims adjusters.

Members of the crew medical department will also transition to the new risk management department. Vince Warger, Penny Shifrin, Dr. Fabio Acevedo and LaShawn Knight will move to risk management, as well as eight crew medical managers and coordinators.  A new team leader will be hired to supervise the medical group and report to Mr. Burke. 

Associate Vice President of Guest and Employee Legal Services,Tony Faso, will remain under Mr. Stein.

The new risk management department is the idea of Chief Operating Officer (COO) and President of Royal Caribbean Cruises, Ltd., Adam Goldstein (photo above right), who recently replaced Richard Fain (now Chairman) at the helm of the cruise line. 

We anticipate that this restructuring will have an impact on the medical treatment of crew members and the management of the legal claims asserted against the company by passengers and crew members. 

Over the recent years, we have watched Royal Caribbean make dramatic cost-cutting steps. In 2001, Royal Caribbean fired 500 employees. In 2008, it fired around 400 employees in its headquarters (including many senior female managers in its legal department). And last year, it terminated the employment of another 100 employees in its shore-side offices.

Officers in the Royal Caribbean fleet complained last year of job and cost cuts, additional work and lower compensation, while shipboard tip earners (cabin attendants and waiters) have complained that the cashless, pre-paid gratuity was really a scheme to divert tips from the guests into the cruise lines’ coffers to defray the costs to the cruise line of paying the salaried ship employees.

We have most recently witnessed a renewed effort by the cruise line’s crew medical department to refuse to authorize significant medical treatment, needed by sick crew members, in order to save money. Some of the cases are heart breaking, including the abandonment of ill crew members who need surgeries and ship employees stricken with cancer who have been sent home with no arrangements for chemotherapy.

The transfer of medical managers & coordinators responsible for providing medical treatment to ship employees, as well as the re-positioning of lawyers & adjusters responsible for crew injuries and medical claims, to a new department overseen by an accountant may signal an effort to further reduce costs.  

COO Goldstein’s plans for his new risk management department specifically envision cost reduction. We predict that fewer benefits to the ill and injured crew members will be the net result.    

 

Photo Credit: Merco Press

Royal Caribbean Cruise Line CEO Adam GoldsteinRoyal Caribbean Cruises President and CEO Adam Goldstein sold 44,256 shares of Royal Caribbean stock yesterday.  Zolimax News reports that Mr. Goldstein sold his stock at an average price of $52.96, for a total transaction of $2,343,797.76.

After the sale, Mr. Goldstein’s stocks total 358,804 shares, valued at approximately $19,002,260.

Royal Caribbean (RCL) has a 52-week low of $31.35 and a 52-week high of $53.42. 

We last reported on the cruise president’s stock sales in October of last year when he sold 7,855 shares of RCL stock at an average price of $43.22, for a total value of $339,493.10. At that time, he reportedly owned 335,654 shares of Royal Caribbean stock, valued at approximately $14,506,966. 

It looks like the cruise executive’s net worth has increased by over $7,000,000.

Royal Caribbean pays a salary to its waiters and cabin attendants of only $50 a month; the cruise passengers pay tips to the waiters and stewards but Royal Caribbean is scooping up much of the tips to pay other crew member’s salaries. Employees like utility cleaners earn a pittance of around $550 a month (with no tips) working around 11-12 hours a day, every day of the month during contracts that are 6-8 months long. 

In September of last year, Royal Caribbean fired over one-hundred employees in its corporate offices in order to increase profits. You can read about that here: Loyal to Royal? Royal Caribbean Axes 100 Jobs in Corporate Headquarters.

 

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Photo Credit: Adam Goldstein – Cruise360 Vimeo