SkyWest Airlines 2011 Annual Report Download - page 138

Achievement of Individual goals and related annual bonus:
Individual
Objective Individual Goals
Percentage Goals Annual
Salary Results Bonus(1)
Jerry C. Atkin ............................ 40% 92.5% 37.0%
Bradford R. Rich .......................... 40% 98.8% 39.5%
Russell A. Childs .......................... 20% 93.0% 18.6%
Bradford R. Holt .......................... 40% 80.5% 32.2%
Michael J. Kraupp ......................... 30% 103.3% 31.0%
(1) The amount of the individual goal annual bonus for each Executive is equal to the
percentage of the Executive’s achievement of his individual goals, multiplied by the
objective percentage of salary for that Executive.
Discretionary Bonus. In addition to the net income-based annual bonus, and the individual goal
annual bonus, the Committee also exercised discretion in 2011 and paid the following discretionary bonuses
in recognition of the Executives’ efforts to integrate the operations of ExpressJet Holdings, Inc. with and
into the operations conducted by Atlantic Southeast Airlines, Inc., challenges of operating shorter stage
lengths and lower utilization as mandated by the Company’s major partners, challenges in dealing with the
reimbursement rates payable under the Company’s contracts with its major partners, and challenges in
dealing with higher maintenance costs than the Company’s management anticipated. Discretionary bonus
amounts paid with respect to 2011 were $40,000 for Mr. Atkin, $23,000 for Mr. Rich, $20,000 for Mr. Holt
and $4,000 for Mr. Kraupp. Mr. Childs did not receive a discretionary bonus.
Amount of 2011 Annual Bonus—The total annual bonus amounts payable to the Executives for
2011 were: Mr. Atkin—$188,000; Mr. Rich—$141,500; Mr. Childs—$156,500; Mr. Holt—$102,000 and
Mr. Kraupp—$57,000. Those amounts, are included in the amounts shown in the Summary
Compensation Table below under the caption headings ‘‘Bonus and Non-Equity Incentive Plan
Compensation’’.
Long-Term Awards. Discretionary long-term incentive awards, in the form of stock options,
restricted stock units (or, from 2006 through 2009, shares of restricted stock), and performance units
payable in cash are granted to the Executives annually.
Long-term incentive awards are made to encourage the Executives to continue their engagement
with the Company throughout the vesting periods of the awards and to align management and
shareholder interests. In making awards to the Executives, the grant size and the appropriate
combination of equity- based and deferred cash awards is considered. The Committee generally grants
long-term incentive awards at its first meeting of each year. Except in the case of accelerated vesting
upon a change in control of the Company, long-term incentive awards currently vest only if the
Executive remains employed by the Company for three years from the date of grant. The Committee
believes the three-year cliff-vesting schedule assists in retaining Executives and encourages the
Executives to focus on the Company’s long-term performance.
In granting stock options, restricted stock units and shares of restricted stock to the Executives, the
Committee also considers the impact of the grant on the Company’s financial performance, as determined
in accordance with the requirements of Financial Accounting Standards Board Accounting Standards
Codification Topic 718 (ASC Topic 718). For long-term equity awards, the Company records expense in
accordance with ASC Topic 718. The amount of expense recorded pursuant to ASC Topic 718 may vary
from the corresponding compensation value used in determining the amount of the awards.
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