Alaska Airlines and Horizon Air 2013 Annual Report Download - page 65
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EXECUTIVE COMPENSATION
performance between the levels identified
below. The Committee retains discretion to
reduce bonus amounts below the level that
would otherwise be paid.
The Committee approved payouts to the
Named Executive Officers for performance
stock unit awards in connection with the
three-year performance period ended
December 31, 2013. The awards were paid
at 200% of target as a result of the
Company ranking first in total shareholder
return (TSR) among its airline peer group
during the performance period.
For the January 1, 2013 through
December 31, 2015 performance period,
the vesting of 50% of the stock units subject
to the award will be determined in
accordance with the chart below based on
the Company’s TSR rank versus the
companies in the airline peer group, and the
vesting of 50% of the stock units subject to
the award will be determined in accordance
with the applicable chart below based on the
Company’s TSR Percentile Rank versus all of
the companies in the Standard & Poor’s
500 index.
2013 Performance Stock Unit Award Metrics
Airline Peer Group S&P 500 Companies
TSR Rank Among the
Airline Peer Group
Percentage of Peer
Group Stock Units
that Vest
TSR Percentile Rank
Among the S&P Index
Percentage of S&P
Stock Units that Vest
1st or 2nd 200% Above 90th 200%
3rd 175% 90th 200%
4th 150% 80th 175%
5th 125% 70th 150%
6th 100% 60th 125%
7th 80% 50th 100%
8th 60% 40th 60%
9th 40% 30th 20%
10th 20% Below 30th 0%
11th or below 0%
Equity Award Guidelines
The Committee considers and generally
follows equity grant guidelines that are
based on the target total direct
compensation levels and pay mix described
above. Target equity grants, when combined
with the base salary and annual target
incentive opportunity described above, are
designed to achieve total direct
compensation at the 50th percentile of the
peer group data for Named Executive
Officers. The Committee may adjust equity
grants to the Named Executive Officers
above or below these target levels based on
the Committee’s general assessment of:
• the individual’s contribution to the
success of the Company’s financial
performance;
• internal pay equity;
• the individual’s performance of job
responsibilities; and
• the accounting impact to the Company
and potential dilution effects of the
grant.
58