Norwegian Cruise Line is overhauling its board after activist investor Elliott Investment Management built a significant stake and pushed for operational and strategic changes at the business, according to a report by Reuters.
The cruise operator says five new directors will join at the end of March, including four put forward by Elliott, marking a substantial shift in governance as the company looks to improve performance.
Elliott, which has amassed a stake of more than 10% and is now the company’s largest shareholder, has called for improvements in guest experience and financial results, alongside a broader reset of strategy. The hedge fund has been increasingly active in pressing for change following weaker earnings and a subdued outlook for 2026.
The board changes coincide with a leadership consolidation. Chief executive John Chidsey, who joined the company earlier this year, will also assume the role of chairman. Elliott has publicly backed Chidsey, citing confidence in his ability to drive a turnaround.
Norwegian, which has a market value of around $8.6bn, faces a challenging backdrop. The company warns that higher fuel costs linked to geopolitical uncertainty will weigh on profitability, while booking momentum has softened as consumers curb discretionary spending.
The activist’s involvement follows a prolonged period of underperformance. Norwegian’s shares have fallen sharply over the past five years, lagging larger rival Royal Caribbean, which has delivered strong gains over the same period.
John Pike, partner at Elliot said: “We see meaningful value creation potential under John Chidsey’s leadership, and believe the refreshed board will play an important role in restoring investor confidence.”
