SkyWest Airlines 2010 Annual Report Download - page 150

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forfeiture if the three-year tenure-based vesting requirement is not met) for the year ended
December 31, 2010 were as follows:
Target
Shareholder Performance Performance
Return on Equity Shareholder Units Units Value
Target Return on Equity Grant Value Earned(1)
Jerry C. Atkin ................. 8.36% 8.58% $288,150 $295,640
Bradford R. Rich ............... 8.36% 8.58% $167,460 $171,815
Russell A. Childs ............... 8.36% 8.58% $148,320 $152,176
Bradford R. Holt ............... 8.36% 8.58% $139,066 $142,676
(1) Performance Units Value Earned = Shareholder Return on Equity divided by Shareholder Return
on Equity Target, multiplied by Target Performance Units Grant Value
In 2010, the Company took additional measures to strengthen the performance- based nature of its
long-term incentive award program by subjecting two-thirds of each Executive’s stock option grant in
2010 to an additional performance-based vesting condition tied to the Shareholder Return on Equity
attained in the year of grant (in addition to the applicable tenure-based three-year cliff vesting
schedule). With respect to the two-thirds portion of the 2010 stock option grants that were subject to
performance-based vesting, the targeted level of Shareholder Return on Equity for 2010 was 8.36%. All
performance-based options granted in 2010 to Executives would have been forfeited if 2010
Shareholder Return on Equity had been less than 4.18%; forfeiture would have occurred on a
pro-rated basis if Shareholders Return on Equity fell between 4.18% and 8.36%. The actual
Shareholder Return on Equity for the year was 8.58%, which fully satisfied the performance-based
vesting condition for 2010. The stock options remain subject to forfeiture, however, if the applicable
Executive’s employment terminates prior to the expiration of the third year from the date of grant
(other than in connection with a change in control of the Company).
The following table summarizes the number and nature of long-term awards granted to the
Executives on February 3, 2010.
Time Vested LTI Performance-Contingent LTI
Shares/Stock Shares/Stock Other Units
Options Units Options(1) Units (Cash)(1)
Jerry C. Atkin ...................... 20,094 19,886 40,188 — $288,150
Bradford R. Rich .................... 11,678 11,557 23,356 — $167,460
Russell A. Childs .................... 10,343 10,236 20,686 — $148,320
Bradford R. Holt .................... 9,698 9,597 19,396 — $139,066
(1) Assumes attainment of 100% of target performance level.
Retirement Benefits.
The Company and SkyWest Airlines sponsor a 401(k) retirement plan for all eligible employees,
including the Executives. Atlantic Southeast also maintains a substantially equivalent 401(k) plan for its
eligible employees, including its President. Both plans are broad based, tax-qualified retirement plans
under which eligible employees, including the Executives, may make annual pre-tax salary reduction
contributions subject to the various limits imposed under the Internal Revenue Code of 1986, as
amended (the ‘‘Code’’). The sponsoring employers make matching contributions under the plans on
behalf of eligible participants; however the right of Executives and other officers to such matching
contributions is limited. The Committee believes that maintaining the 401(k) retirement plans and
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