SkyWest Airlines 2015 Annual Report Download - page 135

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33
restricted stock unit grants and 2015 performance-based annual bonuses, however, were not “qualified
performance-based compensation.” As a result, a portion of the compensation earned by Messrs. Atkin and Childs for
2015 exceeded the deduction limit of Section 162(m) of the Code.
Effect of Compensation on Risk
Based on the Compensation Committee’s review of the various elements of the Company’s executive
compensation practices and policies, the Compensation Committee believes the Company’s compensation policies and
practices are designed to create appropriate and meaningful incentives for the Company’s employees without
encouraging excessive or inappropriate risk taking. Among other factors, The Compensation Committee considered the
following information:
• The Company’s compensation policies and practices are designed to include a significant level of
long-term compensation, which discourages short-term risk taking.
• The base salaries the Company provides to its employees are generally consistent with salaries paid for
comparable positions in the Company’s industry, and provide the Company’s employees with steady
income while reducing the incentive for employees to take risks in pursuit of short-term benefits.
• The Company’s incentive compensation is capped at levels established by the Compensation Committee,
which the Compensation Committee believes reduces the incentive for excessive risk-taking.
• The Company has established internal controls and adopted codes of ethics and business conduct, which
are designed to reinforce the balanced compensation objectives established by the Compensation
Committee.
• The Company has adopted equity ownership guidelines for its executive officers, which the Compensation
Committee believes discourages excessive risk-taking.
Based on the review outlined above, the Company has concluded that the risks arising from its compensation
policies and practices for its employees are not reasonably likely to have a material adverse effect on the Company.
COMPENSATION COMMITTEE REPORT
The Compensation Committee has reviewed the foregoing compensation discussion and analysis and discussed
with the Company’s management the information set forth herein. Based on such review and discussions with
management, the Compensation Committee recommended to the Board that the foregoing compensation discussion and
analysis be included in this proxy statement.
The Compensation Committee
Keith E. Smith, Chair
Henry J. Eyring
Meredith S. Madden
Ronald J. Mittelstaedt
Steven F. Udvar-Hazy