Carnival to split chairman and CEO roles
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Carnival Corporation is to split the roles of chairman and CEO next month as it announced its second quarter results. The change means that Micky Arison will step down as CEO after 34 years in charge.
Arison, who also owns the Miami Heat basketball team, will continue to hold the role of chairman and will be joined by Arnold W. Donald, who will become CEO as of 3 July.
Donald has held a board role at Carnival for 12 years and was the founder of Merisant which products include sweetener brands Canderel and Equal. He will lead Carnival’s executive team concentrating on its long-term goals.
“As a board member, I have come to know Micky, Howard and the company well. I have a first-hand appreciation of what it has taken to develop this highly successful business, an understanding for the dynamics and challenges we face, and a great deal of confidence in the company’s management team and their ability to execute. I look forward to working with the company’s many stakeholders including our 90,000 employees, 10 million guests, thousands of travel agent partners, vendors and shareholders around the globe,” said Donald.
Arison will oversee the company from a board level and remain its largest shareholder, having previously led its acquisition of Holland America Line, Costa Cruises, Cunard and Seabourn and the merger with P&O Princess Cruises. He joined Carnival in 1979 as CEO and has generated more than US$15 billion in annual revenue since.
“I have been discussing this with the board for some time now and feel the timing is right to align our company with corporate governance best practices and turn over the reins after 34 years as CEO,” said Arison. “Arnold is an exceptional professional with extensive experience in organisational leadership who will bring a fresh perspective to the company.”
The switch was announced after the cruise company posted net earnings of US$41 million in 2013’s second quarter with revenues in line with 2012 at US$3.5 billion.
Advance bookings at the cruise company are behind compared to last year at lower prices although this has improved since the end of March for all its lines except Carnival Cruise Lines.
Arison said the company will continue to promote its quality and variety to both the trade and consumers to boost its numbers for the year as well as attempt to drive down fuel costs.
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