Averting Proxy Wars: 10 Companies Opting for Activist Investor Settlements

4. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Activist Investor: Elliott Investment Management

Number of Hedge Fund Holders: 52

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) reached a cooperation agreement with activist investor Elliott Investment Management early in the year, averting a potential proxy fight. The activist had waged a campaign arguing that the stock was significantly undervalued following years of strategic missteps, weak operational execution, and underperformance relative to competitors.

The activist investor called for a comprehensive board overhaul. It had also pushed for a new business plan focused on improving revenue generation and cost controls. Elliott also criticized the board’s oversight and management succession decisions, including the appointment of former Subway chief John Chidsey as CEO

The cooperation agreement resulted in the appointment of five new independent directors and the resignation of four existing board members. CEO John Chidsey also became chairman, while former British Airways CEO Alex Cruz assumed the role of lead independent director

Norwegian Cruise Line Holdings Ltd. opted for a negotiated resolution rather than risk a potentially costly proxy contest at its 2026 annual shareholder meeting. Elliott’s greater-than-10% economic interest gave it considerable influence, while its willingness to take the campaign directly to shareholders created additional pressure on the board.

Despite the agreement, Norwegian Cruise Line Holdings Ltd. has remained under pressure, underperforming the broader market as the stock has slumped 23% year to date. Is NCLH a long-term stock under $20?