Alaska Airlines and Horizon Air 2009 Annual Report Download - page 59

For 2009, the guidelines applied to the
Named Executive Officers are noted in the
table below:
Equity Guidelines
Equity
Target
as % of
Base
Pay
Equity Mix
Name
Stock
Options
Restricted
Stock
Units
William S. Ayer 300% 50% 50%
Bradley D. Tilden 225% 50% 50%
Glenn S. Johnson 200% 50% 50%
Benito Minicucci 200% 50% 50%
Jeffrey D. Pinneo 200% 50% 50%
Special Equity Awards: In 2009, the
Committee granted Mr. Ayer a retention
award in the form of stock options and
restricted stock units. These awards have a
term of ten years and will vest on the third
anniversary of the grant date. These awards
are not subject to accelerated vesting upon
retirement or separation from the Company.
Stock Ownership Guidelines
In 2009, the Company adopted stock
ownership guidelines for elected officers.
Under the guidelines, elected officers are
strongly encouraged to hold Company stock
having a value of one year’s base salary.
The Committee reviews executive ownership
annually.
Perquisites and Personal Benefits
Beginning in 2008, an annual amount equal
to 12% of base salary is paid to each
Named Executive Officer in lieu of all
perquisites except for travel, life insurance,
health exams, accidental death and
dismemberment insurance, and Alaska
Airlines Boardroom membership. Pursuant to
the terms of a long-standing agreement with
certain executives involved in a merger in
the 1980s, the Company will provide lifetime
travel to Mr. Ayer as part of his retirement.
Retirement Benefits/Deferred Compensation
The Company provides retirement benefits
to the Named Executive Officers under the
terms of qualified and non-qualified defined-
benefit retirement plans. The Retirement
Plan for Salaried Employees (the “Salaried
Retirement Plan”) and the Company’s
401(k) plans are tax-qualified retirement
plans that the Named Executive Officers
participate in on substantially the same
terms as other participating employees. Due
to maximum limitations imposed by the
Employee Retirement Income Security Act of
1974 and the Internal Revenue Code on the
annual amount of a pension which may be
paid under a qualified defined benefit plan,
the benefits that would otherwise be
payable to the Named Executive Officers
under the Salaried Retirement Plan are
required to be limited. An unfunded defined
benefit plan, the 1995 Elected Officers
Supplementary Retirement Plan (the
“Supplementary Retirement Plan”), provides
make up benefits plus supplemental
retirement benefits.
The Named Executive Officers are also
permitted to elect to defer up to 100% of
their annual Performance-Based Pay
payments under the Company’s Nonqualified
Deferred Compensation Plan. The Company
believes that providing the Named Executive
Officers with deferred compensation
opportunities is a cost-effective way to
permit executives to receive the tax benefits
associated with delaying the income tax
event on the compensation deferred.
Please see the “2009 Pension Benefits”
and “2009 Nonqualified Deferred
Compensation” tables and information
following them for a description of these
plans.
ŠProxy
43