Alaska Airlines and Horizon Air 2013 Annual Report Download - page 66
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EXECUTIVE COMPENSATION
The Committee believes that stock options,
time-based restricted stock units and
performance stock units each provide
incentives that are important to the
Company’s executive compensation program
as a whole. Therefore, the Committee
generally allocates the of grant-date value
(based on the principles used in the
Company’s financial reporting) of each
executive’s total equity incentive award
among these three types of awards.
2013 Equity Awards
For 2013, the guidelines applied to the Named Executive Officers are noted in the table below:
Equity Award Guidelines
Equity
Target
asa%of
Base Pay
Equity Mix
Name
Stock
Options
Restricted
Stock
Units
Performance
Stock
Units
Bradley D. Tilden 300% 34% 33% 33%
Brandon S. Pedersen 150% 34% 33% 33%
Glenn S. Johnson 200% 34% 33% 33%
Benito Minicucci 200% 34% 33% 33%
Keith Loveless 200% 34% 33% 33%
Special Equity Awards
The Committee retains discretion to make
other equity awards at such times and on
such terms as it considers appropriate to
help achieve the goals of the Company’s
executive compensation program.
In 2013, the Committee made a one-time
special performance award to certain key
executives of the Company, including
Mr. Pedersen. The award represents
approximately two times base salary at
target and is designed to motivate
executives to achieve specific financial and
operational goals that will drive superior
financial results over the three-year period
ending December 2015. Payouts under the
terms of the award are tied to ROIC, unit
cost and on-time performance goals and are
aligned with the Company’s long-term
strategic plan.
Perquisites and Personal Benefits
In 2013, an amount equal to 12% of base
salary was paid to each Named Executive
Officer in lieu of all perquisites except for
travel, life insurance, health exams, and
accidental death and dismemberment
insurance. The Committee has decided to
phase out this perquisite allowance over a
three-year period beginning in 2014.
Retirement Benefits/Deferred Compensation
The Company provides retirement benefits
to the Named Executive Officers under the
terms of qualified and non-qualified defined-
benefit and defined-contribution retirement
plans. The Retirement Plan for Salaried
Employees (the Salaried Retirement Plan)
and the Company’s 401(k) plans are tax-
qualified retirement plans in which
Mr. Tilden, Mr. Johnson, and Mr. Loveless
participate on substantially the same terms
as other participating employees. Due to
ŠProxy
59