SEC Filings

DEF 14A
CARNIVAL CORP filed this Form DEF 14A on 03/07/2019
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Table of Contents

COMPENSATION

Compensation Discussion and Analysis and Carnival plc Directors’ Remuneration Report—Part I

 

B.    Disclosure and the Timing of Equity-Based Compensation

The Compensation Committees met in January 2018 to determine the target values of the MTE grants, in February 2018 to determine the PBS grants and in April 2018 to determine the SEA grants, all of which are part of the equity-based compensation for key executives in fiscal 2018.

The fiscal 2018 MTE grant was made in January 2019 once the Management Incentive Plan performance result was assessed and verified. Because the MTE grants are based on 2018 performance, the Compensation Committees believe that the discussion of these equity-based grants made after fiscal year end is important to understanding the overall Named Executive Officer compensation for the preceding year.

Accordingly, we describe below the MTE grants made in early 2019 and the MTE grants made in early 2018 (which were discussed previously in last year’s Proxy Statement but first appear in the “Summary Compensation Table” and “Grants of Plan-Based Awards in Fiscal 2018” table in this year’s Proxy Statement).

C.    Fiscal 2018 Annual Grants

2018 MTE Grants. In January 2018, the Compensation Committees approved an MTE target grant value for each of our Named Executive Officers and certain other executives. Each target grant value was determined after consideration of recommendations received from Mr. Donald and the Chairman of the Boards of Directors, as well as reviewing the scope of the Named Executive Officer’s responsibilities, performance and long-term retention considerations. There was no increase in the MTE target for the Named Executive Officers for fiscal 2018.

Following the end of fiscal 2018, the actual 2018 Management Incentive Plan payout percentage is applied to the MTE target grant value to determine the actual MTE grant values, which may be from zero to 200% of target. In January 2019, the actual MTE grant value earned was converted into a number of RSUs that cliff vest two years from the date of grant. The MTE grants do not receive dividends or have voting rights. Each MTE RSU is credited with dividend equivalents equal to the value of cash and stock dividends paid on Carnival Corporation common stock or Carnival plc ordinary shares. The dividend equivalents will be distributed upon the settlement of the MTE RSUs only upon vesting. Please see the “Equity Grants Made During Fiscal 2019 as Compensation for Fiscal 2018” table for additional MTE grant details.

The MTE grants made to our Named Executive Officers in January 2019 were as follows:

 

  Named Executive Officer   

MTE Target

Value(1)

 

           

 

2018

Payout

Percentage

 

          

MTE

Grant

Value

 

           

Closing Price

On

Grant Date(1)

 

           

RSUs

 Received(2) 

(#)

 

 

 

  Arnold W. Donald

 

    

 

$1,500,000

 

 

 

    

 

x

 

 

 

    

 

156.3

 

 

   

 

=

 

 

 

   $

 

2,344,500

 

 

 

    

 

÷

 

 

 

    

 

$52.20

 

 

 

    

 

=

 

 

 

    

 

44,913

 

 

 

 

  David Bernstein

 

    

 

$   400,000

 

 

 

    

 

x

 

 

 

    

 

156.3

 

 

   

 

=

 

 

 

   $

 

625,200

 

 

 

    

 

÷

 

 

 

    

 

$52.20

 

 

 

    

 

=

 

 

 

    

 

11,977

 

 

 

 

  Stein Kruse

 

    

 

$   500,000

 

 

 

    

 

x

 

 

 

    

 

150.7

 

 

   

 

=

 

 

 

   $

 

753,500

 

 

 

    

 

÷

 

 

 

    

 

$52.20

 

 

 

    

 

=

 

 

 

    

 

14,434

 

 

 

 

  Arnaldo Perez

 

    

 

$   250,000

 

 

 

    

 

x

 

 

 

    

 

156.3

 

 

   

 

=

 

 

 

   $

 

390,750

 

 

 

    

 

÷

 

 

 

    

 

$52.20

 

 

 

    

 

=

 

 

 

    

 

7,845

 

 

 

 

  Michael Thamm

 

    

 

   465,000

 

 

 

    

 

x

 

 

 

    

 

132.6

 

 

   

 

=

 

 

 

  

 

616,509

 

 

 

    

 

÷

 

 

 

    

 

45.34

 

 

 

    

 

=

 

 

 

    

 

13,600

 

 

 

(1)

The closing price on the grant date is calculated by reference to the price of Carnival Corporation common stock or Carnival plc ordinary shares on the New York Stock Exchange or London Stock Exchange, respectively, on the date of grant. The MTE grant made to Mr. Thamm is based on Carnival plc ordinary shares denominated in sterling. Because Mr. Thamm is compensated in euros, the Carnival plc ordinary share closing price on the grant date of £40.35 has been converted into euros based on an exchange rate of 1.12:£1.

(2)

RSUs received have been rounded down to the nearest whole share.

 

LOGO Carnival Corporation & plc 2019 Proxy Statement  

 

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