SkyWest Airlines 2014 Annual Report Download - page 141

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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’’);
• Russell A. Childs, President of the Company;
• Wade J. Steel, Chief Commercial Officer of the Company, SkyWest Airlines and ExpressJet, and
formerly Executive Vice President and acting Chief Financial Officer of the Company, SkyWest
Airlines and ExpressJet (the ‘‘CFO’’);
• Michael B. Thompson, Chief Operating Officer of SkyWest Airlines;
• Bradford R. Rich, former Chief Commercial Officer of the Company, SkyWest Airlines and
ExpressJet;
• Michael J. Kraupp, former Vice President and Treasurer of the Company, SkyWest Airlines and
ExpressJet; and
• Bradford R. Holt, former 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.
Current Year Accomplishments
The Compensation Committee viewed the Company’s performance improved in the second half of
2014. The Company’s income before income taxes, excluding special charges, improved year over year
in the third quarter by $24 million and fourth quarter by $18 million. Such improvement was driven, in
part, by the following accomplishments:
• SkyWest Airlines successfully certified and started its operation of the Embraer E175 aircraft;
• ExpressJet’s operational performance significantly improved in the second half of the year due,
in significant part, to improved planning and utilization of crews;
• the Company was able to work with its major airline partners to improve long-term profitability
through the accelerated retirement of unprofitable flying, extension of flying contracts at
improved rates and improved operational performance;
• the Company continued to strategically expand its profitable pro-rate operations; and
• the Company improved maintenance reliability while improving maintenance cost structure.
These accomplishments not only improved the Company’s performance, primarily in the second half of
2014, but the Board believes these accomplishments will contribute to improved financial performance
in future years.
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.
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