Norwegian Cruise Line Holdings Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

Employee Benefits and Compensation Plans

3 Months Ended

Mar. 31, 2023

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Benefits and Compensation Plans

8. Employee Benefits and Compensation Plans

Restricted Share Unit Awards

In March 2023, NCLH granted 5.8 million time-based restricted share unit awards to our employees, which primarily vest in substantially equal installments over three years. Additionally, in March 2023, NCLH granted 0.8 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 through 2025 and the satisfaction of an additional time-based vesting requirement that generally requires continued employment through March 1, 2026.

The following is a summary of restricted share unit activity for the three months ended March 31, 2023:


	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, 2023	6,980,707	$	22.83	2,749,939	$	26.30	50,000	$	59.43
Granted	5,874,554		15.07	819,020		15.14	—		—
Vested	(2,773,670)		25.81	(292,043)		35.59	—		—
Forfeited or expired	(97,332)		20.61	—		—	—		—
Non-vested as of March 31, 2023	9,984,259		17.46	3,276,916		22.68	50,000		59.43

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


	Three Months Ended
	March 31,
	2023		2022
Payroll and related expense	$	4,457	$	6,204
Marketing, general and administrative expense		23,698		26,588
Total share-based compensation expense	$	28,155	$	32,792