More than 14 months have passed following the resignation of Kevin Sheehan as the president and CEO of Norwegian Cruise Line Holdings, but Norwegian’s recently-filed 2015 Annual Report sheds light on the executive’s severance package which was noted as an expense of $13.4 million.
Norwegian’s filing said the separation agreement with Sheehan included certain non-competition clauses. In addition, Sheehan gets all of his accrued and unpaid base salary, a previously approved bonus for fiscal year 2014, a one-time cash separation payment in an amount equal to his base salary and target bonus, and finally, a vesting portion of his outstanding unvested equity-based awards.
“This resulted in a total severance expense of $13.4 million of which $8.2 million was due to the acceleration of the equity-based awards which was recorded in the market, general and administration expensive in January 2015,” said Norwegian.