Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

v3.19.3
Employee Benefits and Compensation Plans
9 Months Ended
Sep. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Employee Benefits and Compensation Plans

10.   Employee Benefits and Compensation Plans

Share Option Awards

The following is a summary of option activity under NCLH’s Amended and Restated 2013 Performance Incentive Plan for the nine months ended September 30, 2019:

Weighted-

Number of Share Option Awards

Weighted-Average Exercise Price

Average

Time-

Performance-

Market-

Time-

Performance-

Market-

Contractual

Aggregate

Based

Based

Based

Based

Based

Based

Term

Intrinsic Value

    

Awards

    

Awards

    

Awards

    

Awards

    

Awards

    

Awards

    

(years)

    

(in thousands)

Outstanding as of January 1, 2019

 

5,686,793

410,499

 

208,333

$

50.65

$

45.67

$

59.43

 

6.22

$

13,946

Exercised

 

(311,732)

(138,306)

 

38.19

19.00

 

  

 

  

Forfeited and cancelled

 

(83,666)

(156,251)

 

56.30

59.43

 

  

 

  

Outstanding as of September 30, 2019

 

5,291,395

115,942

 

208,333

$

51.29

$

58.96

$

59.43

 

5.63

$

20,576

Restricted Ordinary Share Awards

The following is a summary of restricted NCLH ordinary share activity for the nine months ended September 30, 2019:

    

Number of

    

Time-

Weighted-

Based

Average Grant

Awards

Date Fair Value

Non-vested as of January 1, 2019

 

429

$

58.41

Vested

 

(429)

58.41

Non-vested as of September 30, 2019

 

$

Restricted Share Unit Awards

On March 1, 2019, NCLH granted 1.9 million time-based restricted share unit awards to our employees, which vest in substantially equal annual installments over three years. Additionally, on March 1, 2019, NCLH granted 0.5 million performance-based restricted share units to certain members of our management team, which vest upon the achievement of certain pre-established performance targets established for the 2019 and 2020 calendar years and the satisfaction of an additional time-based vesting requirement that generally requires continued employment through March 1, 2022.

The following is a summary of restricted share unit activity for the nine months ended September 30, 2019:

Number of

Weighted-

Number of

Weighted-

Number of

Weighted-

Time-Based

Average Grant

Performance-

Average Grant

Market-

Average Grant 

    

Awards

    

Date Fair Value

    

Based Awards

    

Date Fair Value

    

Based Awards

    

Date Fair Value

Non-vested as of January 1, 2019

 

2,973,032

$

53.98

 

825,614

$

56.58

 

50,000

$

59.43

Granted

 

1,929,495

55.00

 

462,282

(1)

55.27

 

Vested

 

(1,430,124)

53.02

 

(121,000)

56.27

 

Forfeited or expired

 

(167,261)

55.03

 

(37,500)

56.27

 

Non-vested as of September 30, 2019

 

3,305,142

$

54.94

 

1,129,396

$

56.09

 

50,000

$

59.43

(1) Number of performance-based restricted share units included assumes maximum achievement of performance targets.

The compensation expense recognized for share-based compensation for the periods presented include the following (in thousands):

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2019

    

2018

    

2019

    

2018

Payroll and related expense

$

4,489

$

4,012

$

12,974

$

11,779

Marketing, general and administrative expense

 

20,931

 

24,950

 

69,096

 

77,018

Total share-based compensation expense

$

25,420

$

28,962

$

82,070

$

88,797