|CARNIVAL CORP filed this Form DEF 14A on 03/07/2019|
Compensation Discussion and Analysis and Carnival plc Directors Remuneration ReportPart I
Please refer to the following discussion and the Compensation Tables section for additional information on total direct compensation.
Base salaries are intended to provide a level of fixed compensation that is reflective of each Named Executive Officers level of responsibility. Base salaries of our Named Executive Officers for fiscal 2018 are reported in the Summary Compensation Table. The Compensation Committees annually review each Named Executive Officers performance and may increase the base salary of a Named Executive Officer at their discretion if merited by performance or other market factors necessary to attract and retain our executives.
Salaries for fiscal 2018 were established for our Named Executive Officers in January 2018 after performance results for the prior fiscal year were available. There was no increase in the base salaries of our Named Executive Officers for fiscal 2018.
In fiscal 2018, each Named Executive Officers target bonus comprised a significant portion of their respective total cash compensation opportunity, supporting Carnival Corporation & plcs objective to emphasize pay for performance. Annual bonus payments are intended to reward short-term individual, corporate, and a group of brands performance results and achievements. The emphasis on the annual bonus as compared to base salary allows Carnival Corporation & plc to more closely link financial results to individual and overall company performance. Fiscal 2018 bonuses for our Named Executive Officers are reported in the Summary Compensation Table under the column labeled Non-Equity Incentive Plan Compensation.
For fiscal 2018, the annual bonuses for our Named Executive Officers were determined in accordance with the Carnival Corporation & plc Management Incentive Plan (the Management Incentive Plan) described below.
The Management Incentive Plan is designed to focus the attention of our executives, including our Named Executive Officers, on achieving outstanding performance results as reflected by income from the operations of Carnival Corporation & plc as well as other relevant measures. For the Named Executive Officers who are Chief Executive Officers of a group of brands, the Management Incentive Plan is designed to also focus their attention on achieving outstanding performance results as reflected in the operating income of the group of brands they oversee.
Under the Management Incentive Plan, the Corporation Operating Income Target, Brand Operating Income Target and target bonus for each executive are established by the Compensation Committees for each plan year. The respective operating income targets are the adjusted U.S. Generally Accepted Accounting Principles net income of Carnival Corporation & plc, or the respective brand (or group of brands), excluding interest income and expense, other nonoperating income and expense, and income taxes, as reported by Carnival Corporation & plc, or the respective brand (or group of brands), as applicable, for the plan year.
The Corporation Operating Income Target and Brand Operating Income Target for each year is established by the Compensation Committees taking into account historical performance, company/industry growth, Carnival Corporation & plcs annual plan, consultation with management, investor guidance (as to the Corporation Operating Income Target), the brands annual plan (as to the Brand Operating Income Target) and such other factors as the Compensation Committees deem appropriate. In order to measure managements controllable operating contribution to the company, the Corporation and Brand Operating Income Targets and the actual Corporation and Brand Operating Income