SEC Filings

DEF 14A
CARNIVAL CORP filed this Form DEF 14A on 03/07/2019
Entire Document
 


Table of Contents

COMPENSATION

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

 

The SEA grant requires an absolute TSR condition that is linked to Carnival Corporation’s share price growth as follows:

 

Goal Levels

Absolute TSR

Compound Annual

Growth per Year

(%)

Vesting

Payout

(%)

 

Below Threshold

 

 

 

Less than 7

 

 

0.0%

 

 

0

 

 

Threshold

 

 

7

 

 

At 7%, each 0.3% increase in the compound annual growth rate increases the absolute TSR vesting by 5.6% of the initial number of SEA restricted stock units granted until the maximum growth is reached

 

 

50

 

 

Target

 

 

9.7

 

 

100

Maximum

20.4

 

At maximum, three times the initial number of SEA restricted stock units granted is earned subject to a cap that the number of shares be reduced to such shares as have a value equal to seven times the grant date value if, at the end of the performance period, they would then be worth more than seven times the grant date value

 

300

The absolute TSR payout percentage is then multiplied by a modifier tied to Carnival Corporation’s TSR ranking relative to the 2018 Peer Group which may increase or decrease the absolute TSR result, as follows:

 

 

  Quintile

 

    

 

First

 

    

 

Second

 

    

 

Third

 

    

 

Fourth

 

    

 

Fifth

 

 

  Relative TSR Ranking (%)

 

    

 

0-14

 

    

 

15-29

 

    

 

30-69

 

    

 

70-84

 

    

 

85-100

 

 

  Relative TSR Modification (%)

 

 

    

 

33

 

 

    

 

75

 

 

    

 

100

 

 

    

 

125

 

 

    

 

200

 

 

The Compensation Committees believe that these SEA grants provide the Name Executive Officers with meaningful upside tied explicitly to shareholder outcomes and create alignment among the Named Executive Officers and senior management team.

The SEA grants made to our Named Executive Officers in April 2018 are included in the “Grants of Plan-Based Awards in Fiscal 2018” table.

D.    Disclosure of Prior Years’ Equity Grant Results

2016 PBS Grants. The 2016 PBS grants made to the Named Executive Officers in April 2016 reached the end of the performance period at the end of fiscal 2018 and vested on February 15, 2019. Under the terms of the 2016 PBS grant, shares vested based upon the extent to which Corporation Operating Income (70% weighting), as adjusted for 100% of year-over-year fuel price changes and currency exchange rate impact for each of fiscal 2016, 2017 and 2018 and ROIC growth (30% weighting) over the three-year performance period reached or exceeded the following:

 

  Goal Level  

Annual

Corporation

Operating Income

Growth Goal

(%)

 

 

2016

Corporation

Operating Income

Goals

($ in billions)

 

 

2017

Corporation

Operating Income

Goals

($ in billions)

 

 

2018

Corporation

Operating Income

Goals

($ in billions)

 

 

2018

ROIC Growth

Goal

(%)

 

 

Payout for

Operating

 Income & ROIC 

Goals

(%)

 

 

  Threshold

 

     

 

4

 

 

     

 

2.980

 

 

     

 

3.237

 

 

     

 

3.328

 

 

     

 

30

 

 

     

 

50

 

 

 

  Target

 

   

 

 

 

 

8

 

 

 

   

 

 

 

 

3.134

 

 

 

   

 

 

 

 

3.361

 

 

 

   

 

 

 

 

3.456

 

 

 

   

 

 

 

 

35

 

 

 

   

 

 

 

 

100

 

 

 

 

  Maximum

 

 

   

 

 

 

 

 

16

 

 

 

 

 

   

 

 

 

 

 

3.447

 

 

 

 

 

   

 

 

 

 

 

3.610

 

 

 

 

 

   

 

 

 

 

 

3.712

 

 

 

 

 

   

 

 

 

 

 

50

 

 

 

 

 

   

 

 

 

 

 

200

 

 

 

 

 

 

LOGO Carnival Corporation & plc 2019 Proxy Statement  

 

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