SkyWest Airlines 2010 Annual Report Download - page 146

2010 Net Income Targets, Net Income Results and Net Income-based Bonuses. The Net Income
targets, actual Net Income results and corresponding Net Income-based bonus, for each Executive for
the year ended December 31, 2010 are set forth below as a percentage of each Executive’s salary.
Net Income Net Income Net Income-
Target Results Based Annual
(in millions) (in millions) Bonus(1)
Objective (Percentage of Salary) ....................... 60.0%
Jerry C. Atkin ..................................... $116.9 $103.3 $53.0%
Bradford R. Rich .................................. $116.9 $103.3 $53.0%
Russell A. Childs .................................. $ 79.8 $ 77.8 $58.5%
Bradford R. Holt .................................. $ 28.2 $ 18.6 $39.5%
(1) Net Income-Based Annual Bonus = Net Income Results divided by the applicable Net Income
Target, and multiplied by 60% objective
The Committee believes Net Income is a key measure of the financial health of the Company, and
reflects the Company’s development of shareholder value.
2010 Individual Goals Bonus Component. The Executives also receive an annual bonus based on
their achievement of individual goals established in advance each year, which goals are subjective and
qualitative in nature. The targeted bonus is 20% of salary and the actual amount of the bonus payment
is adjusted proportionately based on achievement of the individual goals. There are no minimum or
maximum levels of performance with respect to such individual goals.
The Committee has adopted this approach because it believes the use of individual goals allows
awards to reflect the individual efforts and achievements of an Executive that may not be reflected by
corporate net income performance. For fiscal year 2010, the Committee reviewed the individual
qualitative goals for the Executives and made subjective determinations as to the extent to which such
qualitative individual goals were achieved. The actual payout of the 20% bonus on annual salary related
to individual goals was increased or decreased, as applicable, based on the Executive’s achievement of
his individual goals.
For 2010, the individual goals for the Chief Executive included SkyWest Airlines and Atlantic
Southeast qualitative operational performance goals, management development, new business
development and development of a strategic plan. The goals for the Chief Financial Officer include
supporting other finance department officers, developing best practices, ensuring no material
weaknesses in the Company’s financial controls, timely financial closings, relationship maintenance with
major airline partners, develop proactive strategy and general corporate development. The goals for the
Presidents of SkyWest Airlines and Atlantic Southeast included operational performance goals of
satisfactory levels of on-time departures, on-time arrivals and flight completion. Their qualitative goals
included the implementation of cost controls, leadership development, and new business development.
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