SkyWest Airlines 2013 Annual Report Download - page 138

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COMPENSATION DISCUSSION AND ANALYSIS
The following narrative compensation discussion and analysis provides information regarding the
Company’s executive compensation objectives, principles, practices and decisions as they relate to the
following named executive officers of the Company (the ‘‘Executives’’):
• Jerry C. Atkin, Chairman of the Board and Chief Executive Officer of the Company, SkyWest
Airlines and ExpressJet (the ‘‘Chief Executive’’);
• Bradford R. Rich, President of the Company;
• Michael J. Kraupp, Chief Financial Officer and Treasurer of the Company, SkyWest Airlines and
ExpressJet (the ‘‘CFO’’);
• Russell A. Childs, President and Chief Operating Officer of SkyWest Airlines; and
• Bradford R. Holt, President and Chief Operating Officer of ExpressJet.
The compensation discussion and analysis provides narrative perspective to the tables and
disclosure in the tables following this section.
Compensation Objectives and Principles
The overall objective of the Company’s executive compensation programs is to create long-term
value for the Company’s shareholders by attracting and retaining talented executives that effectively
manage the Company in a manner that is consistent with the long-term interest of shareholders.
Accordingly, the executive compensation program incorporates the following principles:
• The overall compensation package should encourage long-term focus and shareholder value
creation.
• Compensation should be competitive with other airlines in order to attract and retain talented
executives.
• Compensation should be based upon individual responsibility, leadership ability, and experience.
• Compensation should reflect the fair market value of the services received.
• A significant amount of total compensation should be incentive based, and should correlate to
the Company’s financial performance, as well as the achievement of operational and individual
goals.
• Compensation should not encourage the taking of undue, material risk.
Executive Compensation Procedures
To attain the Company’s executive compensation objectives and to implement the underlying
compensation principles, the Company follows the following procedures:
Role of the Committee. The Compensation Committee has responsibility for establishing and
monitoring the executive compensation programs and for making decisions regarding executive
compensation. The Chief Executive regularly attends the Compensation Committee meetings. The
Compensation Committee also meets regularly in executive sessions. The Compensation Committee
recommends the compensation package of the Chief Executive to the Board of Directors, which then
sets his compensation. The Compensation Committee also considers the recommendations of the Chief
Executive with respect to compensation of the other Executives, and after reviewing such
recommendations, sets their compensation. The Compensation Committee also monitors, administers
and approves awards under the various incentive compensation plans for all levels within the Company,
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