A gratuitous increase is coming.

[the more ports the better]

I am CEO of my company and my husband is COO.  We make 10 times what our employees make and we pay our employees very well, most have PhD’s and the job market is competitive.  Our employees don’t have to work 365 days per year 12 hours per day or more and assume 100% of the risk, clear out their savings accounts, sign personal guarantees, and mortgage their houses when the business is getting its legs and times are tight.

 

My husband has also been CEO of two public companies, one small and one multi billion, he didn’t get there by not bringing an enormous amount of value into both those companies.  A great executive team makes a company succeed and is invaluable.  A poor executive team makes a company go bankrupt.

 

Also, tips show up on the books and are accounted for like any other income.

[shepherd really]

8 hours ago, njhorseman said:

You don't understand what I was talking about. Yes, the CEO's salary is bloated and he's far too cozy with the board, but I would have said the same thing if FDR were paid $1 per year. His salary has nothing to do with what I said.

 

My point is that some people have the mistaken notion that if crew were paid straight salary that the money to pay that salary somehow would come out of the company's profits rather than the passenger's pockets. That is utter nonsense. You, the ultimate consumer of any product or service pay for everything. The company pays for nothing. Crew compensation is paid by the passenger whether it is straight salary, straight gratuities, or a combination of salary and gratuities. If gratuities were eliminated today fares would be raised today to pay for the former gratuities that are now paid as salary. It's coming out of your pocket one way or the other. The money doesn't come out of company profits.

I understood what you said, I simply think you are wrong.  

[Ride-The-Waves]

On 1/5/2023 at 9:46 PM, the more ports the better said:

I am CEO of my company and my husband is COO.  We make 10 times what our employees make and we pay our employees very well, most have PhD’s and the job market is competitive.  Our employees don’t have to work 365 days per year 12 hours per day or more and assume 100% of the risk, clear out their savings accounts, sign personal guarantees, and mortgage their houses when the business is getting its legs and times are tight.

 

My husband has also been CEO of two public companies, one small and one multi billion, he didn’t get there by not bringing an enormous amount of value into both those companies.  A great executive team makes a company succeed and is invaluable.  A poor executive team makes a company go bankrupt.

 

Also, tips show up on the books and are accounted for like any other income.

Cruise line contract employees' gratuities are NOT "on the books" of a cruise line.  One of the reasons cruise lines do this is to avoid paying taxes on gratuities.

[Guest ldtr]

On 1/5/2023 at 6:25 AM, Robjame said:

Pretty much as you say. I guess not really knowing how the $ are distributed, whether o withdraws an administrative fee, who actually pays for prepaid gratuities associated with Oceania Cub levels, all make the process suspect. Last night a Casino Bar, the bar tender placed a tip in a tip box much as you see a restaurants back home. Is this new?

We prefer to reward individually though to now we do participate in the  suggested group gratuity. 

Since NCLH is listed on US stock exchange they must follow US accounting standards. That makes it pretty clear for the daily gratuity, which is adjustable/removeable, that money must all go to the crew that is covered by the program. The only funds that can be withheld are any credit card processing fees charged by the CC companies in processing the payment. No company admin charges would be allowed. If the company violated that it would be clear in their 10k or 10q filings.

 

 

[Guest ldtr]

On 1/13/2023 at 5:38 AM, Ride-The-Waves said:

Cruise line contract employees' gratuities are NOT "on the books" of a cruise line.  One of the reasons cruise lines do this is to avoid paying taxes on gratuities.

Not so much that because if they violated us accounting standards and had to be considered to be revenue, the money paid out would be expense so no increase in profit. Would make a difference potentially depending on country for payroll taxes, retirement, recruiting fees, etc. Also would impact net margin.

 

Larger impact on employees since payments would be considered to be salary not tips resulting in different ta  treatment in some countries.

[PhD-iva]

On 1/6/2023 at 4:52 AM, shepherd really said:

I understood what you said, I simply think you are wrong.  

NJHorseman is absolutely correct in the explanation. Its economics.