Micky Arison is stepping down from his position as CEO of Carnival Corporation. The announcement came on Tuesday and Arison will hand over the reigns to the cruise ship company next month.
Arison has been chief executive of Carnival for 34 years, but the company has experienced multiple issues in the past year. It is likely that Arison’s decision was made in part by the rather embarrassing situations involving the company’s ships.
The CEO’s late father founded Carnival in 1974. But while the company has enjoyed several years of success, multiple mechanical failures have caused bookings for the cruise line to tumble. In response, the company has been forced to lower its prices.
While Micky Arison will be stepping down as Carnival CEO, investors expressed their relief that the businessman will stay on as a chairman. Carnival shares rose five percent after the announcement was made. Arison assured investors, “I’m not going anywhere. I will remain chairman and my plan is to continue in that role for the foreseeable future.”
Arison also stated that he will work closely with his successor, Arnold Donald. The new CEO has served as a director at Carnival for 12 years. Donald also has experience heading up Monsanto’s Equal sweetener business.
Problems for Carnival began in February when an engine fire left the Triumph adrift in the Gulf of Mexico for days. Passengers were left without power and a working sewage system. A month later, the company was forced to cut a Caribbean cruise short after an engine problem stranded a ship in St. Maarten.
Carnival’s Costa Concordia also ran aground in Italy last year, killing 32 people and hurting bookings significantly. But for all the problems Carnival has experienced in recent years, Micky Arison has also helped his father’s company become an industry giant.
During his time as CEO, Arison bought Holland America, Cunard, and P&O Princess Cruises. But he has also been criticized. When passengers were stranded on the Triumph, Arison was seen attending a Miami Heat game. Carnival apologized for the poor conditions and issued full refunds to all passengers.
Do you think Micky Arison’s decision to step down as CEO of Carnival is a good decision for the company?
[Image via Scott Lucht]