Alaska Airlines and Horizon Air 2013 Annual Report Download - page 71

EXECUTIVE COMPENSATION
In 2013, the Committee awarded certain senior executives a special grant of stock units, including a one-time
award of an additional 13,000 performance stock units to Mr. Pedersen. The award, which was included in
Mr. Pedersen’s annual grant has a three-year performance period and is tied to unit-cost, return-on-invested-
capital and on-time performance goals. The award can range from 0% if the threshold performance is not
reached to 200% of target if maximum performance is achieved.
2011 Performance Awards 2012 Performance Awards 2013 Performance Awards
Name
Aggregate
Grant Date
Fair Value
(Based on
Probable
Outcome)
($)
Aggregate
Grant Date
Fair Value
(Based on
Maximum
Performance)
($)
Aggregate
Grant Date
Fair Value
(Based on
Probable
Outcome)
($)
Aggregate
Grant Date
Fair Value
(Based on
Maximum
Performance)
($)
Aggregate
Grant Date
Fair Value
(Based on
Probable
Outcome)
($)
Aggregate
Grant Date
Fair Value
(Based on
Maximum
Performance)
($)
Bradley D. Tilden 324,890 649,780 2,153,080 4,306,160 448,472 896,944
Brandon S. Pedersen 88,272 176,544 140,600 281,200 793,000 1,586,000
Glenn S. Johnson 208,420 416,840 212,800 425,600 235,704 471,408
Benito Minicucci 245,200 490,400 266,000 532,000 235,704 471,408
Keith Loveless(5) 140,600 281,200 235,704 471,408
(2) Non-Equity Compensation includes Performance-Based Pay compensation and Operational Performance
Rewards, further described in the Compensation Discussion and Analysis.
(3) The amount reported in Column (h) of the Summary Compensation Table above reflects the year-over-year
change in present value of accumulated benefits determined as of December 31 of each year for the
Retirement Plan for Salaried Employees and the Officers Supplementary Retirement Plan (defined-benefit plan)
as well as any above-market earnings on each Named Executive Officer’s account under the Nonqualified
Deferred Compensation Plan. The number included in Column (h) is an estimate of the value of future
payments and does not represent value received. For 2013, the change in the net present value of future
payments for Mr. Tilden is shown as 0 because the effect of an increase in the discount rate more than offset
any increase in the net present value of future payments. For Mr. Minicucci and Mr. Pedersen, Company
contributions to the Defined-Contribution Officers Supplementary Retirement Plan (DC-OSRP) in lieu of the
defined-benefit plan are reported in Column (i) and detailed in the table in Footnote (4) below.
(4) The following table presents detailed information on the types and amounts of compensation reported for the
Named Executive Officers in Column (i) of the Summary Compensation Table. For Column (i), each perquisite
and other personal benefit is included in the total and identified and, if it exceeds the greater of $25,000 or
10% of the total amount of perquisites and other benefits for that officer, is quantified in the table below. All
reimbursements of taxes with respect to perquisites and other benefits are identified and quantified. Tax
reimbursements are provided for travel privileges unique to the airline industry. Also included in the total for
Column (i) is the Company’s incremental cost of providing flight benefits, annual physical, and accidental death
and dismemberment insurance premiums. By providing positive-space travel without tax consequences to the
Named Executive Officers, we are able to deliver a highly valued benefit at a low cost to the Company. In
addition, we believe that this benefit provides the opportunity for the Named Executive Officers to connect with
the Company’s front-line employees. As noted in the Compensation Discussion and Analysis section, in 2011,
2012 and 2013 we paid each of the Name Executive Officers a perquisite allowance equal to 12% of the
executive’s base salary in lieu of providing perquisites other than those noted above.
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