Micky Arison has stepped down as CEO of Carnival Cruise Lines (NYSE:CCL) after 34 years. He will be replaced by board member Arnold Donald but will stay on as chairman.

Arison's replacement comes at a time when the company is still trying to salvage its reputation after a year full of mishaps, including the sinking of the Costa Concordia off the coast of Italy last year and the fire aboard Carnival Triumph in February that left the shift adrift for four days.

"I have been discussing this with the board for some time now and feel the timing is right to align our company with corporate governance best practices and turn over the reins after 34 years as CEO," said Arison, who also owns the NBA champion Miami Heat team.

"Arnold is an exceptional professional with extensive experience in organizational leadership who will bring a fresh perspective to the company. I have come to value and rely on his judgment and insight during the 12 years he has served on the company's board, and I am very confident in his ability to move the organization forward," Arison added.

On news of the appointment, Carnival's stock price rose to $34.88 per share. Carnival said its net income had risen to $41 million from $14 million a year earlier, but revenue fell 2 percent to $3.48 billion in the second quarter.