Alaska Airlines and Horizon Air 2014 Annual Report Download - page 76

2014 Nonqualified Deferred Compensation
Under the Nonqualified Deferred Compensation
Plan, the Named Executive Officers and other key
employees may elect to receive a portion of
some or all of their Performance-Based Pay
awards on a deferred basis. The crediting
interest rate for amounts deferred in prior years
is based on the mean between the high and the
low rates during the first 11 months of the
preceding year of yields of Ba2-rated industrial
bonds as determined by the plan administrator
(rounded to the nearest one-quarter of one
percent). Participants under the plan have the
opportunity to elect among the investment funds
offered under the Company’s 401(k) plan for
purposes of determining the return on their plan
accounts. Alternatively, participants may allocate
some or all of their plan account to an interest-
bearing option with a rate equal to the yield on a
Moody’s index of Ba2-rated industrial bonds as
of November of the preceding year, rounded to
the nearest one-quarter of one percent. Subject
to applicable tax laws, amounts deferred under
the plan are generally distributed on termination
of the participant’s employment, although
participants may elect an earlier distribution date
and may elect payment in a lump sum or
installments.
The following table presents information
regarding the contributions to and earnings on
the Named Executive Officers’ balances under
the Company’s nonqualified deferred
compensation plans during 2014, and also
shows the total deferred amounts for the Named
Executive Officers as of December 31, 2014.
Name
(a)
Executive
Contributions
in Last FY
($)
(b)
Registrant
Contributions
in Last FY
($)
(c)
Aggregate
Earnings
in Last FY(1)
($)
(d)
Aggregate
Withdrawals/
Distributions
($)
(e)
Aggregate
Balance
at Last FYE(1)
($)
(f)
Bradley D. Tilden – – – – –
Brandon S. Pedersen 48,005 – 6,390 – 224,905
Benito Minicucci 56,022 – 7,417 – 252,733
Andrew R. Harrison 34,623 – 3,111 – 156,967
Joseph A. Sprague – – – – –
Glenn S. Johnson 434,172 – 24,118 54,555 752,603
Keith Loveless – – – – –
(1) Only the portion of earnings on deferred compensation that is considered to be at above-market rates under
SEC rules is required to be included as compensation for each Named Executive Officer in Column (h) of the
Summary Compensation Table. Because the earnings were at market rates available to other investors, these
amounts were not included on the Summary Compensation Table.
Potential Payments Upon Change in Control and Termination
The Company has entered into change-in-control
agreements with each of the Named Executive
Officers. Under these agreements, if a change of
control occurs, a three-year employment period
would go into effect. During the employment
period, the executive would be entitled to:
• receive the highest monthly salary the
executive received at any time during the
12-month period preceding the change in
control;
• receive an annual incentive payment equal to
the higher of the executive’s target
Performance-Based Pay incentive or the
64 EXECUTIVE COMPENSATION