Leah Talactac has spent 20 years with Viking, helping to build the cruise company's financial strategy as CFO and leading its initial public offering in 2024 before being named president last year. Now, she's running the company.
Torstein Hagen, who founded Viking in 1997 and led the company to be the world's biggest river cruise line, has transitioned to executive chairman at age 83.
Wall Street wasn't surprised by Hagen's decision to step down or the company's succession plan. Bank of America Merrill Lynch, Cleveland Research and Truist Securities all said in reports following Viking's Q1 earnings call that their analysts expected Talactac to succeed Hagen.
Talactac has been a key part of Viking's management team and well known by investors, making for a seamless transition, Bank of America analysts Andrew Didora and John Gellene wrote in their report.
Cleveland Research's Vince Ciepiel referred to the transition as a "natural step" for the company.
Drew May, a research analyst with Northcoast Research, said Talactac's CFO tenure and business acumen complement executive vice president Karine Hagen's focus on the company culture, creating stability during the CEO transition.
And, he said, Talactac provides a solution to the "key person risk" — the financial and operational vulnerability Viking faced relying on Hagen as the face of the brand.
"We view Viking's leadership transition as a story of continuity given the executive team's decades of experience together and intense focus on being different via its one brand, attractive customer demographics and destination-focused vessels and itineraries," May said.
Talactac did not respond to interview requests.
In her prior roles, Talactac was not public-facing like Hagen but was most notably present during company earnings calls when she shared Viking's financial information. Since joining Viking in 2006, she has held various leadership roles, including group controller and chief accounting officer.
May said the increasing responsibilities and promotions indicate Hagen identified her as his successor. As president and CFO, she led the company's executive committee, guiding it through expansion.
Hagen will focus on long-term company strategy as he supports Talactac in her new role. He praised Talactac, saying that he and the board "have full confidence in her ability to lead Viking with the same continuity, discipline and vision that have guided us since Viking was founded."
"This leadership transition reflects the strength and depth of Viking's management team and the succession planning we have built over many years," he said during Viking's Q1 earnings call.
What travel advisors say
Renee Blozkyl, owner of Red Orchid Travel, said she found reassurance in Viking promoting a leader from within rather than hiring an outside executive who might be unfamiliar with the company's culture. Continuity is important, she said.
One could argue that continuity is particularly important at Viking, a company that has built its brand on consistency, standardization and predictability. No matter where in the world they're sailing, Viking guests can expect a river or ocean ship to have minimalist Scandinavian design and aesthetics.
They can also expect inclusive pricing and an itinerary focused on destination immersion. Hagen has called Viking "the thinking person's cruise" because of its focus on history, culture and natural wonders.
The formula has enabled Viking to keep a tight rein on costs and build a strong following. The company says a little more than half of its customers are repeat guests, and those guests are typically older, have money to spend and time to travel extensively.
Though Blozkyl has not met Talactac, she said she heard about her prior to her promotion to CEO and was left with the impression "that she is highly respected operationally."
Michael Consoli, an advisor with Cruise Planners and the top global Viking seller, met Talactac at the company's IPO in New York and said he has "every confidence she'll continue leading the company in a way that supports the travel advisor community while delivering amazing experiences for guests."