Yet within months Southwest roared back to post steady profits. While the Committee has the powers, authority, duties, and responsibilities set forth in this Charter, the role of the Committee is to assist the Board in its oversight responsibilities. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. The airline assembled a list of 50 domestic airports where it wanted to start service. Factors that could cause these differences include, but are not limited to, the factors described under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in other filings, and as described in the press releases and other materials contained on this website. Coronavirus Tips Working and Protection, For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following executives on its annual proxy statement to the SEC. The difference in fees made it extremely difficult for a low-cost carrier like Southwest, says Mann. That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. Recognition is a cornerstone of our Culture. But in December, Kelly reached an agreement with the Treasuryfor additional aid. Indicates external site which may or may not meet accessibility guidelines. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. Subscribe to Fortune Dailyto get essential business stories straight to your inbox each morning. It also services smaller airports that don't charge as much for gate access. As part of those two deals, it secured an additional 187 options on MAX aircraft. A Company-paid concierge service is also available to those enrolled in this plan. At Southwest, you're empowered to create your own career; one that fits the goalsand lifestyleyou want. Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. But airlines are capital on wings. And, Southwest made its announcement just weeks after one its big competitors, Delta Air Lines, which has about 20,000 more employees than Southwest, announced its own profit-sharing numbers: $1.6 . Southwest Airlines has a business-oriented focus on the customer's experience. Before the crisis, OHare wasnt even on Southwests wish list. Q1 2023 Southwest Airlines Financial Results Conference Call. After mostly losing its once significant cost advantage and low-fare pricing, Southwest now loses a feature that has been valued more by business travelers than leisure travelers. In his Oct. 15 warning on looming sacrifice, Kelly intoned, We all realize Southwest is a cause. Checked baggage is mostly a leisure traveler behavior. Once again, Kelly leaped in. The salary of the CEO of Southwest Airlines, Mark King, is $5.7 million. But Midway, occupying just over one square mile, was operating at full capacity, preventing Southwest from adding more flightsto cities wheremore of its Windy City customers wanted to go. The data presented on this page does not represent the view of Southwest Airlines and its employees or that of Zippia. Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. The early-retirement packages included cash buyouts plus generous health and travel benefits. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. While Southwest Airlines employees earn an average yearly salary of $41,081, different roles can command different wages. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Youd think that to weather the worst devastation in modern airline history, atempest whose ferocity and duration were totally unpredictable, Kelly would play defense by onboarding a strategy of chopping costs and otherwise hunkering down. You may retrieve the full proxy statement by going to the Securities and Exchange Commission (SEC) website at www.sec.gov and entering the company's name and then looking in the first column for an entry of "Form DEF 14A" (or any similar code). Southwest Airlines Co employees with the job title Software Engineer make the most with an average annual salary of $92,984, while employees with the title Associate Software Engineer make the least with an average annual salary of $73,993. The recent cancellation of most domestic change fees will be a tough one to lose, however. Flight attendant. Furthermore, their strategy also includes a deep focus on customer experience and looking ahead. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. The higher paying positions at Southwest Airlines include senior software engineer, lead technician, senior java developer, and devops engineer. Together, along with a little over $100,000 in other gifts and compensations, he made $5.7 million in 2021. The problem was that the airport charged what amounted to big fees per passenger that were traditionally several times higher than in Fort Lauderdale. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. Delta ($27.4 billion) and United ($29.8 billion) are shouldering over two-and-a-half times Southwests burden, and American owes three times as much at $32.5 billion. In many markets where United overlaps with Southwest, United can match the flight frequency while offering the higher-cost things Southwest doesnt: assigned seats, business class optionality, airport lounges, frequent flier points that can get you anywhere in the world, and a set of worldwide airline partners. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. have direct responsibility for reviewing and approving corporate goals and objectives relevant to CEO compensation, evaluating the CEOs performance in light of those goals and objectives, and, either as a committee or together with the other independent members of the Board (as directed by the Board and to the extent consistent with any applicable plan documents or law), determining and approving the CEOs compensation level based on this evaluation; in determining the long-term incentive component of CEO compensation, the Committee will consider the Companys performance and relative shareholder return, the value of similar incentive awards to CEOs at comparable companies, and the awards given to the Companys CEO in past years; review and approve all equity-based compensation arrangements for employees of the Company and make recommendations to the Board with respect to equity-based plans that are subject to Board approval; with the advice of the Chairman of the Board and CEO, perform an annual review of the compensation structure of the Companys officers and approve the salary, bonus, and other incentive and equity-related compensation for each of the Companys executive officers who are subject to 16(b) of the Securities Exchange Act of 1934, as amended (Executive Officers); have direct responsibility for making recommendations to the Board with respect to non-CEO Executive Officer compensation, and incentive-compensation plans that are subject to Board approval; conduct an annual review of compensation for the non-management members of the Board, which shall be an appropriate combination of cash and equity-based compensation, and recommend any changes to the Board; review and discuss with management of the Company the Compensation Discussion and Analysis required to be included in the Companys proxy statement and, based on such review and discussion, have direct responsibility for preparing a Compensation Committee Report for inclusion in the Companys proxy statement; review, assess, and make recommendations to the Board, as appropriate, on the Companys diversity, equity, and inclusion (DEI) philosophy, practices, and initiatives; review, assess, and make recommendations to the Board, as appropriate, on other key human resources policies and practices; annually review and reassess the performance of the Committee; annually review the adequacy of this Charter and recommend any proposed changes to the Board for approval; and. Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. The charts on this page feature a breakdown of the total annual pay for the top executives at SOUTHWEST AIRLINES CO as reported in their proxy statements. It said, We have no words to describe the damage. More importantly, the funds from the cancellation are available for a future trip. From 2020 to 2024, we planned on a big, five-year growth run.. This website contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The numbers that the Southwest Airlines CEO surveyed in April of last year were unspeakably catastrophic, and he had no indicators to foresee if the pandemic signaled a brief nosedive or a slow-motion crash. The data on this page is also based on data sources collected from public and open data sources on the Internet and other locations, as well as proprietary data we licensed from other companies. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. Just as it had to adopt its model as the company and the world around them has changed, the industry also adapts and finds ways to become more competitive. 4.0. One hundred people in personnel went to other jobs across the company, such as keeping maintenance records, says Jordan. Zippia gives an in-depth look into the details of Southwest Airlines, including salaries, political affiliations, employee data, and more, in order to inform job seekers about Southwest Airlines. The proxy statement's main purpose is to alert shareholders to the annual meeting and provide them information about the issues that will be voted on during the annual meeting, including decisions such as electing directors, ratifying the selection of auditors, and other shareholder-related decisions, including shareholder-initiated initiatives. Southwest. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. Cancel. Southwest Airlines offers benefits to full-time employees including: Accidental death and dismemberment insurance. Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Southwest Airlines may also be known as or be related to Southwest, Southwest Airlines, Southwest Airlines Co and Southwest Airlines Co. Based on our analysis, the employees in engineering earn salaries at Southwest Airlines that are well above average, with yearly earnings averaging $104,949. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. Here's more information on Southwest Airlines' competitors : #1. American Airlines 3. I dont expect this to happen, but in the endless search for revenue to cover higher costs, nothing should be taken off the table. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. Headquarters: Chicago, Illinois, United States. There are no current listings of his current salary, but based on Mark King's salary as CEO, you can guess that it will be comparable. Readers should not assume that the information contained on this site has been updated or otherwise contains current information. The card allows them to accumulate Southwest Airlines points when making other purchases. Southwest Airlines is strong from both a size and a cost perspective. Investopedia requires writers to use primary sources to support their work. InApril 2020, Southwest introduced three options for flight attendants, pilots, maintenance workers, salaried employees,and all other groups. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. Negative economic growth will also make businesses and consumers more sensitive to ticket prices, the low-cost airlines' primary advantage. Programs are available to help Southwest Employees live better on and off the job. The lifeline saved Southwest from imposing the first layoffs and pay reductions in its history, six months before the 50-year mark. And thats what happened. Pilots arent eligible, but may elect long-term disability coverage through Southwest Airlines Pilots Association (SWAPA). Southwest Airlines Co employees with the job title Software Engineer make the most with an average. 2022 Southwest Airlines Co. All Rights Reserved. I echoed what Herb Kelleher said during 9/11, says Kelly. With. But the airport wanted to incentivize new entrants to help recover its costs. Southwest Airlines employees rate the overall compensation . Just as it had to adopt its model as the. Air Canada 9. I write about airlines and travel to explain this crazy industry. FORTUNE may receive compensation for some links to products and services on this website. 4.0. For the previous half-decade prior to COVID, Southwest, which had been a domestic-only carrier, made a major shift by focusing its growth almost exclusively on vacation locales in the Caribbean and Latin America, adding flights to 20 destinations such as Cancn, Mexico; San Jos, Costa Rica; and Nassau in the Bahamas. The information shown here is a reporting of information included in the company's proxy statement. For the full year, the total miles flown by all Southwestpaying passengers dropped by 60%, and on average, its fleet of Boeing 737-700s and 800s flew half-empty. But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. Employee Ratings. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. Southwest Airlines has set various policies and procedures that make flying with the airline easy. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). Employees and family members have access to eight free counseling sessions and work/life balance tools. Delta Air Lines employees rated their Recommend to a friend 8% higher than Southwest Airlines employees rated theirs. Investopedia does not include all offers available in the marketplace. Prior to the pandemic, giant OHare wasnt even on Southwests list. His base pay is $643,750 with $989,000 as bonuses. So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. Southwest was already flying 34 of the MAX and had 26 more on order for the year, meaning that its total fleet for2019 was almost 10% smaller than expected. WestJet Airlines 7. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! Southwest prides itself on never imposing furloughs or chopping wages. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. Southwest CEO at Center of Storm After Thousands of Canceled Flights, Southwest Airlines' Biz Model Gives Stock Edge, 4 Things You Didnt Know About Southwest Airlines (LUV), Analyzing Southwest Airlines' (LUV) Market Share, An Economic Analysis of the Low-Cost Airline Industry, Southwest Takes $825 Million Hit From Holiday Chaos. Over a dozen vacation destinations joined the network, from Sarasota to Colorado Springs to Palm Springs, important new dots since vacations and adventures rather than business trips are leading the recovery in air travel. By contrast, the global industry lost 400,000 workers, and American alone laid off 32,000. Kelly reckoned that by deploying planes that would otherwise sit idle, and crews flying a lot less than before, Southwest could generate higher revenue serving new places than the extra cost of those flights, consisting primarily of jet fuel and airport fees. The collapse in demand for flights throughout 2020 nearly put several airlines out of business, but Southwest was able to survive without major layoffs. Unless directed by the full Board, it is not the Committees responsibility to conduct investigations.