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Fuel wasn't really a problem in 2007 for Carnival Corp

Mikel1733

By Mikel1733,
in Carnival Cruise Lines

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firefly333

firefly333

Posted
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Things are still good for those at the top of the food chain.

 

http://biz.yahoo.com/ap/080208/carnival_corp_executive_compensation.html?.v=1

 

Most companies, including carnival didnt get hurt until the 4th qtr. I wouldnt say that fuel wasnt a problem for ALL of 2007 because of the compensation package?

 

In December, the company said its fiscal fourth-quarter profit fell 14 percent, hurt by higher fuel prices and other expenses, but results beat analysts' expectations
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Mikel1733

Mikel1733

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Most companies, including carnival didnt get hurt until the 4th qtr. I wouldnt say that fuel wasnt a problem for ALL of 2007 because of the compensation package?

 

.

 

Hmmm....gasoline prices for the rest of us were high all year. I'm not aware of any way that the average joe blow can hedge his yearly gasoline purchases. I do know that Corporations have the ability to hedge fuel well into the future on the markets. Glad they did that. Micky's pay package goes up 33% and the rest of us pay fuel surcharges.

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firefly333

firefly333

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Hmmm....gasoline prices for the rest of us were high all year. I'm not aware of any way that the average joe blow can hedge his yearly gasoline purchases. I do know that Corporations have the ability to hedge fuel well into the future on the markets. Glad they did that. Micky's pay package goes up 33% and the rest of us pay fuel surcharges.

 

Actually, according to the analysts Carnival does not hedge but RCL does.

 

I do think that oil prices spiked 4th qtr more than the rest of the year. Come on. I know you are proving a point about that they sure paid the hired help well, and maybe being sarcastic about fuel prices.

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GoinCruisin

GoinCruisin

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Hmmm....gasoline prices for the rest of us were high all year. I'm not aware of any way that the average joe blow can hedge his yearly gasoline purchases. I do know that Corporations have the ability to hedge fuel well into the future on the markets. Glad they did that. Micky's pay package goes up 33% and the rest of us pay fuel surcharges.

 

They are in business to make money... they pass the extra costs onto the consumer, that's normal business. In my business I am not going to take a loss just so the consumer is not inconvenienced, that would be a bad business move. 14% is significant to a company this size. The fuel surcharge has nothing to do with what the company pays it's executives... it's a charge that all cruiselines are passing onto their customers. Same thing with airlines, Fedex, UPS, etc. I certainly don't squabble over what a CEO of a large corporation like that makes, if anything, I'm certainly jealous that my business isn't in the same position :p I'm all for businesses making money, that is what keeps this country running.

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Mikel1733

Mikel1733

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Actually, according to the analysts Carnival does not hedge but RCL does.

 

I do think that oil prices spiked 4th qtr more than the rest of the year. Come on. I know you are proving a point about that they sure paid the hired help well, and maybe being sarcastic about fuel prices.

 

I'm not being sarcastic......I'm being realistic firefly. Why reward a seasoned CEO with a 33% increase in pay and then turn around and stick it to customers. Was the fuel surcharge really necessary if the executives of the corporation were on the ball?

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GoinCruisin

GoinCruisin

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I have to ask... if people are so upset about the fuel surcharge, why continue to cruise? Why not choose a different vacation? There just seems to be so much griping about the fuel surcharge, yet people continue to post here, so obviously they are continuing to cruise... I don't get it. If I didn't want to pay the surcharge Fedex charges, i wouldn't ship Fedex... If I don't want to pay the extra baggage fee on an airline, I will choose an airline that doesn't have a charge or pack less, or I'll find another way to get there. We all have choices...

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Mikel1733

Mikel1733

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As they should... it would make for some very unhappy stockholders if they didn't :p A business wouldn't be a very good business if it didn't :D

 

I don't want to speak for shareholders.....but check out the stock price. It reflects the performance of management.

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Mikel1733

Mikel1733

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I have to ask... if people are so upset about the fuel surcharge, why continue to cruise? Why not choose a different vacation? There just seems to be so much griping about the fuel surcharge, yet people continue to post here, so obviously they are continuing to cruise... I don't get it. If I didn't want to pay the surcharge Fedex charges, i wouldn't ship Fedex... If I don't want to pay the extra baggage fee on an airline, I will choose an airline that doesn't have a charge or pack less, or I'll find another way to get there. We all have choices...

 

I've never said I'm against the fuel surcharge. I totally understand that fuel prices have gone out of control. Whats not to understand if you drive a car for the past few years?

 

When you ask your customers to share the pain............why then GC do you pay the CEO a 33% increase. Do you think Mickey is going to jump ship and go to RCCL if you don't pay him?

 

If nothing else it just doesn't look good to customers. IMHO But then if you really don't care about your customers does it matter

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GoinCruisin

GoinCruisin

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I don't want to speak for shareholders.....but check out the stock price. It reflects the performance of management.

 

You don't think it is a direct reflection of what happens to a "luxury item" at the beginning of a recession? :confused:

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Mikel1733

Mikel1733

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According to Forbes Mickey is the 94th most wealthy individual in the world with a net worth of 6.1 billion dollars. He could have taken a pass on the measly 33% increase if for no other reason than he didn't need it and it would help in the public relations of Carnival.

 

But no big deal I guess.

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dan40

dan40

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Mickey got $7,200,000.00, And Carnival BANKED

.........$2,410,000,000.00.

 

So he was paid .00292 of the company's profit. Thats just under 3 tenths of a single percentage point.

He was paid an awful lot of money, but thats not a greedy bite of the pie.

 

How much did fuel hurt them for the year?????????????

 

Dan

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ray98

ray98

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I really do not see how the two are related. Carnival did what any smart business does...instead of taking greater losses they increased the price. In the end the sucess of the business for the year depends on much more than a fuel surcharge decision.

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