Cruise operator Carnival Corp. & plc (CCL, CUK, CCL.L) said Tuesday that it plans to split the roles of chairman and chief executive officer. Long-time CEO Micky Arison will continue to serve as chairman of the company's board. Arnold Donald, who has served on Carnival's board for the past twelve years, will assume the role of CEO, effective July 3.
Arison has served as Carnival's CEO since 1979, when the company was privately held and operated three cruise ships under one brand, generated $44 million in revenue and carried about 160,000 passengers a year.
Arison took the company public in 1987 and led the company's expansion that includes the acquisition of several cruise brands, including Holland America Line, Costa Cruises, Cunard and Seabourn.
A merger between Carnival Corp. and P&O Princess Cruises plc - comprised of Princess Cruises, P&O Cruises (UK), P&O Cruises (Australia), and German cruise brand AIDA - was completed in 2003.
Carnival noted that under Arison's leadership, the company has now grown to more than 100 ships, carrying 10 million passengers a year and generating more than $15 billion in annual revenues.
In his role as chairman, Arison will continue to provide board-level oversight for Carnival and will remain the company's largest shareholder.
Donald will lead the company's executive team, initially focusing on achieving the company's long-term strategic goals while working directly with the operating brand executives. Howard Frank will continue to serve in his current role as vice chairman and chief operating officer of the company.
Arison said, "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. Arnold is an exceptional professional with extensive experience in organizational leadership who will bring a fresh perspective to the company."
The incoming CEO Donald has founded and led Merisant, a company whose products include tabletop sweetener brands Equal and Canderel. He also held multiple senior management roles at Monsanto Co. (MON) over the course of more than 20 years, including president of the company's consumer and nutrition sector as well as president of its agricultural sector.
Additionally, Donald has served as the former president and CEO of the Executive Leadership Council, a professional network and leadership forum for African-American executives of Fortune 500 companies.
In Tuesday's regular session, CCL is trading at $33.69, up $0.47 or 1.43 percent on a volume of 1.73 million shares.
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