Frank to chair Costa, collects $7.5 million from Carnival

JANUARY 28, 2014 — Carnival Corporation & plc (NYSE/LSE:CCL) today announced that former COO Howard Frank has been named Chairman of its Costa Crociere S.p.A subsidiary.

In this role, Mr. Frank will support Michael Thamm, CEO of Costa Crociere S.p.A., who moved to Costa from Carnival's Aida Cruises operation subsequent to the Costa Concordia incident.

Carnival also filed a form 8-K with the SEC in which it reported that yesterday it entered into a separation agreement with Mr. Frank and a consulting agreement regarding his role as special advisor to the President and Chief Executive Officer and to the Chairman of the companies.

Under the Separation Agreement, Mr. Frank will get:

  • A lump sum of $7,500,000.00.
  • His annual cash bonus for fiscal 2013 based on the formula used for other executives, which includes Mr. Frank’s annual performance review.
  • His benefit, if any, under the Carnival Corporation Nonqualified Retirement Plan and the Carnival Corporation Supplemental Executive Retirement Plan, in accordance with the terms of such arrangements.
  • Medical and dental coverage for himself and his spouse, for their lifetimes, equivalent to the coverage provided to active senior-level executives of the companies, to the extent permissible under applicable law. Mr. Frank will pay for the coverage to the same extent as active executives pay for such coverage.

In addition, for three years following Mr. Frank’s retirement from employment with the companies, the separation agreement prohibits Mr. Frank from

(i) working for a competing business, (ii) soliciting employees of the Companies and (iii) disclosing confidential information.

Under the terms of the consulting agreement, Mr. Frank will receive $575,000 per year as compensation for all services provided to the companies and their affiliates.

Mr. Frank currently serves as Chairman of the Executive Committee of the Cruise Lines International Association (CLIA), the world's largest cruise industry trade organization.

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