Royal Caribbean Chairman Richard Fain remains the highest paid executive in the cruise industry. 

Mr. Fain is the highest paid cruise executive for the second year in a row. Mr. Fain was paid $13,343,413 last year (2017), an increase of nearly three million dollars, from $10,405,684 in 2016. 

Royal Caribbean enjoyed a record earnings year in 2017.

The Miami-based cruise line just reported strong first quarterly returns for 2018 – net income of RCCL Chairman Richard Fain$218,700.000 (million), revenues of $2,027,000,000 (billion) and passenger ticket revenues of $1,425,000,000 (billion). 

Financial records also reveal that Mr. Fain sold 20,000 shares of RCL stock two weeks ago. In a transaction dated Friday, April 13th, he sold 17,500 shares of stock at an average price of $114.84, and 2,500 shares at an average price of $115.40 for a total transaction of nearly  $2,300,000.00. Following the sale, SEC records reflect that the chief executive officer now own 882,537 shares of the company’s stock, valued at over approximately $100,000,000. 

Royal Caribbean is the leader of the "over-sized" cruise ship club (think Oasis of the Seas, Allure of the Seas, Harmony of the Seas) with its newest billion-dollar Oasis-class ship (and largest cruise ship in the world) Symphony of the Seas which was delivered from the shipyard last month.

But can the cruise business support the many huge ships coming on line? Skift just published Royal Caribbean Ups Forecast But Wall Street Worries About Too Many Ships.

Have a comment? Please leave one below or join the discussion on our Facebook page. 

Interested in this issue? We suggest reading Fearless Fain, Royal Caribbean’s CEO.

Photo Credit: Carmen Molino YouTube – "Symphony of the Seas delivery. Richard Fain talks to the audience."

Royal Caribbean announced its fourth quarter financial results with CEO Richard Fain stating that the cruise company received revenues of $2,000,000,000 with net profits of $288,040,000. Royal Caribbean’s fourth-quarter profits and revenues reportedly exceeded Wall Street estimates,

Mr. Fain told CNBC that the company met its lofty three-year goals of “double earnings” and a “double-digit” return on invested capital. In response the Royal Caribbean executive stated yesterday that Royal Caribbean employees will each receive a bonuses in the amount of 5% of their annual salary.

Investor Place reports that the cruise line will be distributing the bonus to its 66,000 employees. This Roya; Caribean CEO Richard Fainwill include shore-side and shipboard employees. This bonuses will be in the form of “equity grants” which will vest over three years. RCL reports that total spending on the bonuses will be $80 million.

Crew members state that their annual minimum guaranteed salaries range from $500 to $600 a month for a pot-washer to around $800 to $1,300 for a waiter, cabin attendant or bar tender. These Royal Caribbean ship  employees typically work contracts of around 6 to 8 months straight which turns out to working approximately 9 months a year. So a 5% bonus turns out to be around $225 to $270 for a pot-washer to around $350 to $550 for waiters, cabin attendants and bartenders, to be paid over the course of three years.

Meanwhile, CEO Fain reportedly sold 20,000 shares of Royal Caribbean Cruises stock in a transaction on January 16th. The stock was sold at an average price of $128.10, for a total transaction of $2,562,000.00. Following the sale, the chief executive officer now directly owns 807,741 shares of the company’s stock, valued at $103,471,622.10, according to SEC records. Ms. Fain indirectly owns another 216,206 shares which, at a price of $128.10 each, have a value of $27,695,988.60. Mr. Fain’s’ direct and indirect holdings of RCL stock are valued at $131,167,610.70, at the price of $128.10 a share.

RCL shares are now worth around $132 a share, up approximately $4 more a share since last week, so Mr. Fain’s RCL total RCL shares are now worth around $4,000,000 more than they were at the time of the sale last week.

The point is, that although it’s to be commended in theory that crew members will be rewarded for their hard work with bonuses, the amounts to be paid to the crew in question are rather minuscule, especially because they are to be paid over the course of the next three years rather than in a single check now. The bulk of the $80 million to be paid in bonuses will primarily go to the higher paid shore-side workers. So be sure to tip the crew members with cash when you cruise.

Have a thought? Please leave one below or join the discussion on our Facebook page.

Photo credit: CNBC

Richard Fain Royal Caribbean Royal Caribbean top executive Richard Fain reportedly sold 20,000 shares of Royal Caribbean (RCL) stock this week for a total amount of approximately $2,500,000.

In a transaction this past Monday, November 13th, he sold his shares at an an average price of $123.76, for a total value of $2,475,200.00. CEO Fain officer reportedly now owns 895,416 shares of his cruise company’s stock, valued at around $110,816,684.16. 

In August 2017, Mr. Fain sold over $24,000,000 of Royal Caribbean stock. 

Have a thought? Please leave a comment below or join the discussion on our Facebook page.

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

Photo Credit: Royal Caribbean Press Center

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.

Have a thought, please leave a comment below or join the discussion on our Facebook page.

Photo credit: Royal Caribbean press center.

Royal Caribbean Richard FainRoyal Caribbean chief executive officer Richard D. Fain sold 210,706 shares of his cruise line stock in a transaction on Wednesday, August 2, 2017 at an average price of $115.83, for a total value of $24,406,075.98.

Mr. Fain was last in the news in April when a filing with the Securities and Exchange Commission reflected that his total compensation last year was in the amount of $10,400,000.

Maritime Executive recently reported that Royal Caribbean’s income for the second quarter reached $370 million, the highest second quarter earnings in company history. The cruise line’s financial performance, the maritime journal wrote, "vindicates Fain’s prediction that 2017 would shape up to be a ‘sensational year.’"

Following the stock sale, CEO Fain reportedly now owns 967,741 shares of his company’s stock, valued at $112,093,440.03. 

Have a thought? Please leave a comment below or join the discussion on our Facebook page.

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

Photo Credit: CNBC

Richard Fain  RCL Royal Caribbean CEO Richard D. Fain’s reportedly collected total compensation last year in the amount of $10,400,000 (million) compared to his total compensation in 2015 of $9,400,000 (million), according to a recent filing with the Securities and Exchange Commission.

CEO Fain recently sold 20,000 shares of  Royal Caribbean stock.  The RCL stock was sold at an average price of $94.92, for a total transaction of $1,898,400.00. Following the transaction, Mr. Fain now owns 1,027,741 shares in the company, valued at approximately $97,553,175.72. He also indirectly owns another 426,912 shares of RCL stock, for  the benefit of certain family members, worth over $40,230,479.

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

Richard FainYesterday, Royal Caribbean’s Chairman and CEO Richard Fain bought 29,190 shares of RCL stock, in a series of trades for an average of $68.5161 per share, worth nearly $2,000,000, according the to an article in Seatrade and SEC forms.

Today, with the RCL stock up over 6.50% from yesterday’s close, his $2,000,000 worth of shares purchased yesterday is now worth $2,139,627, for a nice one-day profit of around $140,000.

The SEC forms indicate that he owns 1,068,881 RCL shares directly and 426,912 indirectly which at the current price of $73.30 is worth $109,6416,269.  

Mr. Fain purchased the stock one day after his company’s stock price dropped more than 6% following the release of the cruise line’s second quarter earnings. 

Mr. Fain previously sold 80,516 shares of RCL stock last October at $98.80 per share for a total value of $7,955,335.00.

Mr. Fain collected $9,388,569 in total compensation last year.

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

Photo Credit: Linkedin 

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. 

Have a thought? Leave a message below or join the discussion on our Facebook page

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?

Have a comment? Please leave a comment on our Facebook page.

 

Photo Credit: Flickr – United Way of Miami-Dade

Travel Weekly just published an "interview" of Royal Caribbean cruise executive Richard Fain as part of the cruise line’s promotional build-up to the arrival of the Quantum of the Seas. 

it’s hyperbolic, razzle-dazzle, gobbledygook at it’s finest.  

Royal Caribbean has been been invading crew gratuities for years, doubling up officers in what were previously single cabins, and working the ship employees harder than ever before. When I read the $100 million executive Fain say: "We’ve done loads to make the crew’s job easier . . . We’re proud of our low staff turnover lower," I though that I would pose the following simple question to the crew members who follow Richard Fain - Royal Caribbeanour Facebook page: 

True? or False?

Well here are some of the answers from the Royal Caribbean crew that you will never see in a publication like Travel Weekly:

" . . . on any rccl ship the crew members go (especially from f&b dept.) they always complain they are short of equipment to serve the guest! Your sweet words are only for your market benefits but they are actually false!"

"False . . . Every week there’s at least one person who resigns . . . . If you resign with prior notice, you have 1 year to be rehired. Last year they decided to place all 2 stripe officers in shared cabins and take away most privileges, this cost many of them to resign as well."

"Long hours without any benefits."

"I worked 9 years for Royal Caribbean, nothing improves for the crew, all the opposite."

"I think he is talking like a politician…..there are many resignations now due to the working conditions and they are not being replaced; just the other crew members being made to work longer hours and do unpaid extra duties. ‘Turnover’ is the total of ins and outs, so by not replacing people the turnover figure is falsely low."

"Robots taking over the ships. Crew members start looking for other jobs!!"

If you want to read all of the comments on our Facebook page about Fain’s interview, click here.

 

Photo Credit: Wall Street Journal Smart Money / by Jeffrey Salter / Redux