SkyWest Airlines 2013 Annual Report Download - page 162

goal is appreciation in the value of the underlying shares after the date of grant. With respect to other
awards under the 2010 Plan, the applicable performance goals are targeted levels of achievement set by
the Compensation Committee (to be measured over a performance period designated by the
Compensation Committee) with respect to and based upon one or more of the following business
criteria and measures established by the Compensation Committee:
Net sales; revenue; revenue growth or product revenue growth; operating income (before or after
taxes); pre- or after-tax income or loss (before or after allocation of corporate overhead and bonus);
earnings or loss per share; net income or loss (before or after taxes); return on equity; total
shareholder return; return on assets or net assets; appreciation in and/or maintenance of the price of
the Company’s shares of Common Stock or any other publicly-traded securities of the Company;
market share; gross profits; earnings or losses (including earnings or losses before taxes, before interest
and taxes, or before interest, taxes, depreciation and amortization); economic value-added models or
equivalent metrics; comparisons with various stock market indices; reductions in costs; cash flow or
cash flow per share (before or after dividends); return on capital (including return on total capital or
return on invested capital); cash flow return on investment; improvement in or attainment of expense
levels or working capital levels, including cash and accounts receivable; operating margin; gross margin;
year-end cash; cash margin; debt reduction; shareholder equity; operating efficiencies; market share;
customer satisfaction; customer growth; employee satisfaction; regulatory achievements (including
submitting or filing applications or other documents with regulatory authorities or receiving approval of
any such applications or other documents and passing pre-approval inspections (whether of the
Company or the Company’s third-party manufacturer)); strategic partnerships or transactions;
co-development, co-marketing, profit sharing, joint venture or other similar arrangements; financial
ratios, including those measuring liquidity, activity, profitability or leverage; cost of capital or assets
under management; financing and other capital raising transactions (including sales of the Company’s
equity or debt securities; sales or licenses of the Company’s assets, including its intellectual property,
whether in a particular jurisdiction or territory or globally; or through partnering transactions); cost per
available seat mile; revenue per available seat mile; revenue or cost per revenue seat mile; percentage
of flights completed on time; percentage of scheduled flights completed; lost passenger baggage per
passenger or per seat mile; aircraft utilization; revenue per employee; and implementation, completion
or attainment of measurable objectives with respect to commercialization, projects, service volume
levels, acquisitions and divestitures; transactions; and recruiting and maintaining personnel.
In setting and calculating the degree of attainment of the above performance measures, the
Compensation Committee may also exclude charges related to an event or occurrence which the
Committee determines should appropriately be excluded, including: (a) restructurings, discontinued
operations, extraordinary items, and other unusual or non-recurring charges; (b) an event either not
directly related to the operations of the Company or not within the reasonable control of the
Company’s management; or (c) the cumulative effects of tax or accounting changes in accordance with
U.S. generally accepted accounting principles.
The Compensation Committee may elect to apply the above business measures and the
performance goals related to such measures to the Company as a whole and/or to any one or more of
the subsidiaries divisions or business units of the Company, and may weight such measures and goals in
absolute terms or relative to the performance of other companies.
Under the 2010 Plan, the applicable performance period is between one and five years, as set by
the Committee. For performance unit awards, the Committee has historically used a one-year
performance period—the Company’s fiscal year. The Compensation Committee normally sets the
applicable performance targets during the first calendar quarter of the applicable performance period.
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