Alaska Airlines and Horizon Air 2007 Annual Report Download - page 68

before the officer became a participant in the
Supplementary Retirement Plan.)
Participants in the Supplementary
Retirement Plan become fully vested in their
benefits under the plan upon attaining age 50
and completing 10 years of service as an elected
officer. Plan benefits will also become fully
vested upon a change of control of the Company
or upon termination of the participant’s
employment due to death or disability.
2007 NONQUALIFIED DEFERRED COMPENSATION
Under the Deferred Compensation Plan, the
Named Executive Officers and other key
employees may elect to receive a portion of
some or all of their Performance-Based Pay
awards on a deferred basis. For 2007, Messrs.
Ayer and Finan elected to defer their
Performance-Based Pay payouts. We do not
make any matching or other contributions to any
employee’s account under this plan. For 2007,
amounts deferred under the Deferred
Compensation Plan were credited with interest at
a rate of 6.25%. This rate (as in prior years) is
based on the mean between the high and the
low rates during the first 11 months of the
preceding year of yields of Ba2-rated industrial
bonds as determined by the plan administrator
(rounded to the nearest one-quarter of one
percent). Beginning in 2007, participants under
the plan had the opportunity to elect among the
investment funds offered under our 401(k) plan
for purposes of determining the return on their
plan accounts. Alternatively, participants may
allocate some or all of their plan account to an
interest-bearing option with a rate equal to the
yield on a Moody’s index of Ba2-rated industrial
bonds as of November of the preceding year,
rounded to the nearest one-quarter of one
percent. Subject to applicable tax laws, amounts
deferred under the plan are generally distributed
on termination of the participant’s employment,
although participants may elect an earlier
distribution date and/or may elect payment in a
lump sum or installments.
The following table presents information
regarding the contributions to and earnings on
the Named Executive Officers’ balances under
the Company’s nonqualified defined contribution
plans during 2007, and also shows the total
deferred amounts for the Named Executive
Officers as of December 31, 2007.
Name
(a)
Executive
Contributions
in Last FY
($)
(b)
Registrant
Contributions
in Last FY
($)
(c)
Aggregate
Earnings in
Last FY
($)(1)
(d)
Aggregate
Withdrawals/
Distributions
($)
(e)
Aggregate
Balance at Last
FYE
($)(1)
(f)
William S. Ayer 76,320 0 13,719 24,723 220,337
Bradley D. Tilden 0 0 0 0 0
Gregg A. Saretsky 0 0 3,010 5,759 48,247
Kevin P. Finan 41,340 0 2,409 4,113 28,761
Jeffrey D. Pinneo 0 0 505 966 8,094
(1) Only the portion of earnings on deferred compensation that is considered to be at above-market rates under
SEC rules is included as compensation for each Named Executive Officer in Column (h) of the Summary
Compensation Table. Total earnings for each Named Executive Officer listed in Column (d) above were also
included as earnings in the Summary Compensation Table.
Potential Payments Upon Change in
Control and Termination
Under the change in control agreements in
place with Messrs. Ayer, Tilden, Saretsky and
Pinneo, if a change of control occurs, a three-
year “employment period” would go into effect.
During the employment period, the executive
would be entitled to:
• receive the highest monthly salary the
executive received at any time during
the 12-month period preceding the
change in control;
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