SkyWest Airlines 2009 Annual Report Download - page 135

The following long-term incentive awards were provided to the Named Executives on February 3,
2010.
Time-Vested Performance-Contingent
Shares/Stock Shares/Stock Other Units
Options Units Options(1) Units (Cash)(1)
Chief Executive Officer ................ 20,094 19,886 40,128 0 $288,150
Chief Financial Officer ................ 11,678 11,557 23,356 0 $167,460
President, SkyWest Airlines ............. 10,343 10,236 20,686 0 $148,320
President, ASA ...................... 9,698 9,597 19,396 0 $139,066
(1) Assumes attainment of 100% of target performance level.
The Compensation Committee has reviewed all components of the Chief Executive’s
compensation, including the following:
• Base salary, bonus, long-term incentives
• Cumulative realized and unrealized stock option, restricted stock and performance cash gains
• Dollar value of perquisites and other personal benefits to the Chief Executive and the cost to
the Company
• Earnings and accumulated payment obligations under the Deferred Compensation Plan., which
is zero.
The stock option and restricted stock unit grant made to all Named Executives, officers, and other
employees on February 3, 2010 represented approximately 0.9% of the Company’s fully-diluted
outstanding shares. The Compensation Committee is committed to continue the granting of a
substantial portion of performance-based equity awards to the Named Executives. The Company
anticipates that its future equity award programs will include a similar commitment to linking long-term
awards and annual bonuses to achievement of pertinent, targeted levels of financial performance.
Chief Executive Compensation—Years 2008 and 2009.
The Company believes that the Chief Executive’s compensation should be closely correlated to
shareholder returns and Company performance, and the Chief Executive’s compensation plan is
designed to reflect such principles.
In its meeting held on February 6, 2008, the Compensation Committee granted fewer stock options
and restricted shares to the Chief Executive than he otherwise would have received under the
Company’s traditional long-term award practices in order to make additional shares available for
equity-based awards to the Company’s non- executive employees. The reduced award represented
approximately 78% of normal target grant to the Chief Executive. In 2009 the Compensation
Committee returned to a level of long-term awards to the Chief Executive which the Compensation
Committee believes is more consistent with the Company’s pre-2008 practices. Therefore, the greater
long-term awards to the Chief Executive in 2009 relative to 2008 was primarily a result of the long-term
grant in 2008 at less than stated objectives, in order to allow greater grants to other employees.
Ownership Guidelines
The Company maintains ownership guidelines for the Named Executives to encourage the
alignment of their interests with the long-term interests of the Company’s shareholders. Each Named
Executive is required to maintain a minimum ownership interest in the Company. The guideline
ownership level is a number of shares of Common Stock having a value equal to five times base salary
for the Chief Executive, and three times base salary for the CFO and the Presidents of SkyWest
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