Alaska Airlines and Horizon Air 2010 Annual Report Download - page 75

may adjust equity grants to the Named
Executive Officers above or below these
target levels based on the Committee’s
general assessment of:
• the individual’s contribution to the
success of the Company’s financial
performance;
• internal pay equity;
• the individual’s performance of his job
responsibilities; and
• the accounting impact to the Company
and potential dilution effects of the
grant.
Generally, the Committee balances the
value of equity incentive compensation
awards equally among stock options, time-
based restricted stock units and
performance stock units.
2010 Equity Awards:For 2010, the guidelines applied to the Named Executive Officers are
noted in the table below:
Equity Award Guidelines
Equity
Target
as % of
Base Pay
Equity Mix
Name
Stock
Options
Restricted
Stock
Units
Performance
Stock
Units
William S. Ayer 300% 34% 33% 33%
Glenn S. Johnson 200% 34% 33% 33%
Bradley D. Tilden 250% 34% 33% 33%
Benito Minicucci 200% 34% 33% 33%
Jeffrey D. Pinneo 200% 34% 33% 33%
Brandon S. Pedersen 75%/100%* 34% 33% 33%
* Pro-rated as a result of mid-year election as chief financial officer.
Special Equity Awards:The Committee
retains discretion to make other equity
awards at such times and on such terms as
it considers appropriate to help achieve the
goals of the Company’s executive
compensation program. Mr. Johnson
received a grant of additional performance
stock units in 2010 in connection with the
scope of responsibility he assumed during
2010 to lead the transformation of Company
subsidiary Horizon Air Industries. These
performance stock units are tied to the
achievement of specific financial and
operational goals within a certain time
period, thereby providing an incentive to
strengthen Horizon as a business, which will
benefit stockholders of Alaska Air Group.
Stock Ownership Guidelines
In 2009, the Company adopted stock
ownership guidelines for elected officers.
Under the guidelines, elected officers are
strongly encouraged to hold Company stock
having a value of at least one year’s base
salary. The Committee reviews executive
ownership annually.
Perquisites and Personal Benefits
Beginning in 2008, an annual amount equal
to 12% of base salary is paid to each
Named Executive Officer in lieu of all
perquisites except for travel, life insurance,
health exams, accidental death and
dismemberment insurance and Alaska
Airlines Boardroom membership. In addition,
the Company will provide lifetime travel to
Mr. Ayer as part of his retirement.
ŠProxy
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