The second biggest cruise operator in the world, Royal Caribbean, is on the verge of a major corporate shake-up with reports circulating that the company’s key stakeholder is squaring up against chairman and CEO Richard Fain.
According to Bloomberg Business Week the firm’s investors are due to vote today on a non-binding shareholder proposal which would eliminate staggered directors’ terms. The company currently opposes the plan, which is supported by 19% company stakeholder Arne Alexander Wilhelmsen.
If the proposal is passed it could result in a separation of the chairman and CEO roles and a turnover of the board on an annual basis.
Current directors serve three-year terms, a period of time representing a disadvantage to investors.
Bloomberg quoted analyst Joshua Herrity of Telsey Advisory Group as saying that while the board structure isn’t the biggest concern Royal have right now, it represents “part of the move to improve transparency and shareholder returns”.