Alaska Airlines and Horizon Air 2007 Annual Report Download - page 62

2007 GRANTS OF PLAN-BASED AWARDS
The following table presents information regarding the incentive awards granted to the Named Executive
Officers for 2007. Each of the equity-based awards reported in the table below was granted under our 2004 Plan.
Estimated Possible
Payouts Under Non-Equity
Incentive Plan Awards
Estimated Future
Payouts Under Equity
Incentive Plan Awards(1)
All Other
Stock
Awards:
Number of
Shares
Underlying
Options
(#)
(i)
All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)
(j)
Exercise or
Base Price
of Option
Awards
($/Sh)
(k)
Grant Date
Fair Value
of Stock and
Option
Awards
($)(2)
(l)
Name
(a)
Grant
Date
(b)
Thres-
hold
($)
(c)
Target
($)
(d)
Maximum
($)
(e)
Thres-
hold
($)
(f)
Target
($)
(g)
Maximum
($)
(h)
William S. Ayer 1/31/07 0 0 0 2,500 10,000 20,000 5,200 23,800 42.85 1,172,871
N/A 0 360,000 720,000 0 0 0 0 0 0 0
Bradley D. Tilden 1/31/07 0 0 0 1,350 5,400 10,800 3,200 12,300 42.85 626,979
6/14/07 0 0 0 0 0 0 0 7,700 27.40 105,412
N/A 0 195,000 390,000 0 0 0 0 0 0 0
Gregg A. Saretsky 1/31/07 0 0 0 1,350 5,400 10,800 2,700 12,300 42.85 605,554
6/14/07 0 0 0 0 0 0 0 7,700 27.40 105,412
N/A 0 210,000 420,000 0 0 0 0 0 0 0
Kevin P. Finan 1/31/07 0 0 0 1,250 5,000 10,000 2,500 11,500(3) 42.85 563,033
N/A 0 195,000 390,000 0 0 0 0 0 0 0
Jeffrey D. Pinneo 1/31/07 0 0 0 1,150 4,600 9,200 2,300 10,400 42.85 514,207
N/A 0 177,750 355,500 0 0 0 0 0 0 0
(1) Threshold, target and maximum are based on 25%, 100% and 200% estimated future payouts, respectively.
(2) The amounts reported in Column (l) reflect the fair value of these awards on the grant date as determined under the
principles used to calculate the value of equity awards for purposes of the Company’s financial statements and may
or may not be representative of the value eventually realized by the executive. For a discussion of the assumptions
and methodologies used to value the awards reported in Column (l), please see the discussion of stock awards and
option awards contained in Note 10 (Stock-Based Compensation Plans) to the Company’s Consolidated Financial
Statements, included as part of the Company’s 2007 Annual Report filed on Form 10-K with the SEC and
incorporated herein by reference.
(3) This award preceded Mr. Finan’s retirement on January 1, 2008. Upon retirement, 2,875 shares of the 11,500
options granted to him were forfeited pursuant to the terms of the equity agreement.
Description of Equity-Based Awards
Each of the equity-based awards reported in
the Grants of Plan-Based Awards Table was granted
under, and is subject to, the terms of the 2004
Plan. The 2004 Plan is administered by the
Compensation Committee. The Committee has
authority to interpret the plan provisions and make
all required determinations under the plans. This
authority includes making required proportionate
adjustments to outstanding awards upon the
occurrence of certain corporate events such as
reorganizations, mergers and stock splits, and
making provisions to ensure that any tax
withholding obligations incurred in respect of
awards are satisfied. Unless otherwise provided by
the Committee, awards granted under the 2004
Plan are generally only transferable to a beneficiary
of a Named Executive Officer upon his death.
Options
Each option reported in Column (j) of the table
above was granted with a per-share exercise price
equal to the fair market value of a share of our
common stock on the grant date. For these
purposes, and in accordance with the terms of the
2004 Plan and our option grant practices, the fair
market value is equal to the closing price of a share
of our common stock on the applicable grant date.
Each option granted to our Named Executive
Officers in 2007 is subject to a four-year vesting
schedule, with 25% of the option vesting on each of
the first four anniversaries of the grant date. Once
vested, each option will generally remain
exercisable until its normal expiration date. Each of
the options granted to our Named Executive
Officers in 2007 has a term of ten years. If a
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