The proxy statement includes footnotes and explanations of this information plus other information that is pertinent in assessing the overall value and appropriateness of the compensation information. Though most of the markets were small, Kelly figured that adding a lot of them fast would enable Southwest to expand more rapidly than under the original plan, where it would move slowly and deliberately by adding a couple of new airports a year. When were looking for leisure customers, the best places are those smaller locales, says Watterson. Employees have free, unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. They now sit at the high-fare poker table with a suddenly weaker hand. 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. Checked baggage is mostly a leisure traveler behavior. It also services smaller airports that don't charge as much for gate access. 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. Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. 9/11 was awful, but we recovered quickly, he observes. 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. Southwest Airlines scored higher in 9 areas: Overall Rating, Culture & Values, Work-life balance, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook. 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. Other roles at Southwest Airlines include manager, custom support and services and cashier. See how working at Delta Air Lines vs. Southwest Airlines compares on a variety of workplace factors. Try another search query or. It has pushed the industry in many positive trends, but this is an aggressive industry. 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. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. I echoed what Herb Kelleher said during 9/11, says Kelly. Plus, as competitors retreated, the top budget carrier had a chance to gain footholds in congested airports that it might never see again. You may also find the annual proxy statement by going directly to the company's website. Southwest. 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. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. What your skills are worth in the job market is constantly changing. It plans to replace the fast-retiring 700s with two MAX models: the MAX 8 at 175 seats, and the smaller MAX 7 that boards 143. As adopted by the Board of Directors of Southwest Airlines Co. on February 2, 2022. Southwest Employees play a large role in making a positive difference in the communities we serve. Southwest Airlines also has one of the better rewards programs in the industry. 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 objective was to secure large reductions through voluntary programs that kept the largest possible number ofworkersofficially employed, and poised to return in the upswing. We wanted to make our network more dense, to get more connectivity. 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. Youd look out the window when arriving at one of our maintenance airports like Dallas and see dozens of planes parked in the maintenance hangars. Flying over theVictorville Airport in Californias Mojave Desert, passengers would spy a sea of Southwest heavy metal ribboned in red, yellow, and blue. . Qualitative analysis evaluates a company's unquantifiable aspects such as management style and worker loyalty. 4.0. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. 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. But at the same time, he showed the vision and moxie to pursue a superambitious flight plan for growth. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. Southwest's already seeing huge improvement in its fortunes: It's estimating that for June, operating revenues will be down just 20% from 2019 versus three-fourths at this time last year,. Negative economic growth will also make businesses and consumers more sensitive to ticket prices, the low-cost airlines' primary advantage. Step-By-Step Pay Equity Analysis Guide Product Guide By clicking Download Product Guide, Do you know what your employees really want for the holidays? Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. In Chicago, Southwest had longbeen the dominant carrier in Midway. In 2019, Southwest went to a new playbook: The goal was tofirst finish the last legs of the over-the-water network by adding Honolulu and gateways to four other Hawaiian airports from the West Coast. Unless directed by the full Board, it is not the Committees responsibility to conduct investigations. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc, Ask anonymous questions on Fishbowl and get real time answers from Southwest Airlines and United Airlines employees and others in your industry. Another 4,000 to 5,000 chose towork on flexible schedules, and 14,500opted for extended time off, often to supervisetheir schooled-at-home kids. Boeing also has over 200 of the larger 737-800s, which are far younger and have years of service ahead. A few years ago I was flying Southwest, and while standing in line to board there were two men in front of me that appeared to be traveling together. Southwest Airlines offers automated options to receive Investor Alerts. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. 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. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. United Airlines. "I get this business customer." The Committee shall have the powers, authority, duties, and responsibilities to: The Committee shall be directly responsible for the appointment, compensation, and oversight of the work of any compensation consultant, independent legal counsel, or other adviser retained by the Committee; provided that the Committee has taken into consideration all factors relevant to that persons independence from management, including any independence factors that may be specified from time to time by the Securities and Exchange Commission and the New York Stock Exchange. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. Shockingly, and this is the most speculative of my arguments I admit, over time the removal of this change could mean the beginning of Southwest charging for checked baggage. We were planning hundreds of aircraft worth of growth. The blueprint called for around three or four new destinations a year. Overall, Southwest axed outlays of $8 billion in what Kelly calls cold, hard cash.That drive lowered combined operating expenses and capex by 40% versus 2019. However, there are many more factors that go into this competitive advantage. Once again, Kelly leaped in. It's no secret that workers earn different salaries in different parts of the country, since the cost of living can be much higher in certain areas. But the pandemic opened an unexpected new lane. The competitive advantages Southwest enjoys today center mostly around the features that let it win corporate travel business against the global networks of American, United and Delta. Southwest Airlines pays those in the bottom 10 percent $19,000 a year, and the top 10 percent over $87,000. That pullback allowed Southwest to realize what it had only dreamed ofgrabbing gates at the nations third-busiest airport. All Rights Reserved. Baggage handler. For several decades, Southwest Airlines was the envy of the airline industry because of multiple competitive advantages: a low-cost structure that stayed low due to fast growth, happy employees who liked their jobs and translated that to customers, loved by customers and the government for its low fares and creating strong competition, unique in its customer flexibility with no bag or change fees, and more. Privacy Policy. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. Other available benefits include adoption assistance reimbursement, paid adoption leave, parental leave (Noncontract Employees), child and elder care resource and referral program, committed partner benefits, a concierge program, supplemental hospital insurance, pet insurance, and auto and home insurance. With. A career at Southwest Airlines includesseveral benefits and perks, from ourlegendary Culture to travel privileges for Employees and their eligible dependents. Gary Kelly had no visibility. Compare. Employee-focused companies are dedicated to creating an atmosphere in which employees can be. Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. One way of measuring strength is size. The recent cancellation of most domestic change fees will be a tough one to lose, however. Id never read a message from the finance staff anything like that dark. At Southwest, you're empowered to create your own career; one that fits the goalsand lifestyleyou want. But it also encompassed a secondfront, a major push in markets where Southwest was already strong, but could fly far more customers by adding flights. But in December, Kelly reached an agreement with the Treasuryfor additional aid. The company has about 54,000 workers nationwide, including 1,000 in North Texas at its corporate. The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. Employees can choose from a broad spectrum of investment options and roll over any eligible funds from a previous employer. Southwest gives points to customers. Flight attendant. Programs are available to help Southwest Employees live better on and off the job. The COVID hit was far more damaging because we kept getting false dawns, then it would go on and on.. For decades, Southwest has been able to expand during crises because of its low costs, then come back stronger, says industry expert Robert Mann. This time, Kelly, whose 17-year tenure makes him the longest-serving CEO for a major U.S. carrier, couldnt even guess at how long the mysterious virus would ground Americas travelers. All Employees receive basic term life insurance at no cost. Southwest Airlines has set various policies and procedures that make flying with the airline easy. For contract, or union workers, the airline directed each group to reduce its 2019 costs by 10% in 2021. Employees can save money by making tax-free contributions to flexible spending accounts for health-care and dependent childcare. Southwests already seeing huge improvement in its fortunes: Its estimating that for June, operating revenues will be down just 20% from 2019versus three-fourths at this time last year, possibly bringing cash flow into balance and suggesting that it will make the turn to generating cashsoon. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. Finally, none of this would be possible without a motivated team of employees. He recalled that in the days after the World Trade Center attack, when he as CFO sent similarly disastrous figures to the budget carriers legendary cofounder, and his own mentor, Herb Kelleher. Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. How Much Does Southwest Airlines Pay Compared To Delta Air Lines? Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Delta Air Lines employees rated their Positive Business Outlook 7% higher than Southwest Airlines employees rated theirs. More importantly, the funds from the cancellation are available for a future trip. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. 2023 Fortune Media IP Limited. Thedeparturestotaled 4,500. While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been its deep focus on hiring the right people. Those two things allow the other airlines to serve markets Southwest cant, including smaller U.S. cities and cities across the globe, and they result in higher costs. In fact, it didnt do either one. None of the information on this page has been provided or approved by Southwest Airlines. 2022 Southwest Airlines Co. All Rights Reserved. But one of the structurally difficult things about the airline business is that two key components people and airplanes tend to get more expensive as they get older. Air Canada 9. Delta Air Lines scored higher in 6 areas: Overall Rating, Work-life balance, Senior Management, CEO Approval, Recommend to a friend and Positive Business Outlook. At Southwest Airlines, employees working in engineering jobs and finance jobs tend to earn the highest salaries. You can learn more about the standards we follow in producing accurate, unbiased content in our. They are now a major player in Chicago, Houston, Phoenix, Baltimore, Florida, California and Dallas thanks to the removal of the highly restrictive Wright Amendment that for decades kept a cap on flights from Dallas Love Field. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. One time on a scheduled flight from Chicago to Houston, four people were booked, and nobody showed up. By donating to organizations that support people and the communities we serve, we take pride knowing our donations of time, money, and resources create meaningful impact. Bachelor of Science (BS / BSc), Computer Science (CS), Bachelor of Science (BS / BSc), Marketing, Bachelor of Arts (BA), Professional & Technical Writing, Bachelor of Business Administration (BBA), Bachelor of Business Administration (BBA), International Business, Bachelor of Science (BS / BSc), Accounting, Bachelor of Science (BS / BSc), Aeronautics, Pay increases are a top concern for 2022 to attract and retain talent, Temporary employee laws: A guide to hiring contract roles, What to include in a termination letter: Template and examples, How to Manage Your Time and Prioritize Your Workload. Delta Air Lines 2. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. InApril 2020, Southwest introduced three options for flight attendants, pilots, maintenance workers, salaried employees,and all other groups. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. Southwest Airlines Gratitude (SWAG) Points. Transform pay with our enterprise-grade comp platform, Automate compensation with our full-suite solution, Payscale's employer-reported salary data network, The world`s largest employee-submitted pay database, Annual survey salary data from HR industry publishers, The crowdsourced compensation data API for developers, 100% company submitted data from 2,000+ businesses, Schedule a personalized demo to feel the power of Payscale, Find salary information for similar job titles and locations, Comp Planning Business Case Pitch Deck By clicking Download Pitch Deck, you. Before you decide whether variable pay is right for your org, get a deeper understanding of the variable pay options and the cultural impact of pay choices. Find information about retirement plans, insurance benefits, paid time off, reviews, and more. The airline couldn't managed to keep its . Southwest. Eligible dependents include spouse or committed/registered partner, eligible dependent children under 19 years old (or up to 24 if a full-time student), and parents. Employees in the top 10 percent can make over $87,000 per year, while employees at the bottom 10 percent earn less than $19,000 per year. In one of his 71 online broadcasts to employeesduring the crisis, Kelly on Oct. 15 declared, The Payroll Supportprogramallowed us to operate without pay cuts or furloughs through Sept. 30, but it didnt go far enough or long enoughNow its time to do what must be done to save Southwest.. Today, nine in 10 of the employees who went on leave have returned to full-time work. Southwest Airlines Co employee benefits and perks data. Sources of data may include, but are not limited to, the BLS, company filings, estimates based on those filings, H1B filings, and other public and private datasets. That super-solid positionshould enable it to greatly expand its fleet in the months and years to come, providing the extra seats to capture an outsize share of the overall markets growth, and in promising markets, pull passengers from its rivals planes. Southwest Airlines employees earn an average salary of $41,081 in 2023, with a range from $19,000 to $87,000. Yes, the pay is good at Southwest Airlines. It has pushed the industry in many positive trends, but this is an aggressive industry. Offers may be subject to change without notice. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. But airlines are capital on wings. I dont like paying for checked bags when I didnt check any bags. They looked at me and said we didnt check bags either and then, with a figurative light bulb on their head, said hey, were subsidizing all those bag checkers! We all laughed, but it brings out a point about Southwests fares. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. But I wanted to do everything I could to keep people in place and the blood flowing, so that wed be staffed to zoom out into the recovery and create more jobs. Kellys first move was to hammer nonlabor costs. But they could reach that goal through a variety of routes, by imposing layoffs, reducing pay, or hiking productivity, or a blend of all three. $39,360 per year. 1,214 reviews from Southwest Airlines employees about Pay & Benefits Find jobs. That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. And, with pass agreements from other airlines and discounts with rental car companies, hotels, theme parks, and more, Employees can choose their own adventure. Employees choose from medical coverage options ranging from preferred provider organizations (PPOs) to a high deductible health plan. This cost pressure has caused Southwest to move into major airports like New Yorks LaGuardia and Reagan National in D.C. Theyve paid for slots to get into these airports, where the younger Southwest avoided airports like these both for cost reasons and operational efficiency. Miss the industry alot. Now Southwest is backing its growth plans with the most ambitious aircraft expansion program of any major. The higher fares Southwest charges today are necessary because of cost increases due to people and airplanes, and size that makes it difficult to mitigate with growth alone. Working at Greatwide Dedicated Transport LLC. Can Southwest hold out even after other airlines have waived change fees. Employees and family members have access to eight free counseling sessions and work/life balance tools. Controlling costs is also crucial to surviving a downturn, and Southwest does well there too. It said, We have no words to describe the damage. Terms & Conditions. At the national level, Southwest makes a positive impact on our communities by supporting a number of issues through our charitable relationships. JetBlue Airways 5. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. Southwest holds the most cash and carries the lowest debt of the major carriers. We had to make the flight anyway so that the plane could make the return trip.. In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. To pull this off, Southwest Airlines offered employees a variety of options to retire early or take extended leaves of up to 18 months at 50% or more of their base pay. Theyre centered around supporting the physical, mental, and financial health and wellbeing of our Employees and their families. most airlines' revenues. 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). Nevertheless, Southwest has managed to beat the odds, with a 96% retention rate, 44 straight years of profitability, and no layoffs in their history. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Employees who enroll in a BenefitsPlus program receive one times their annual base pay(minimum of $50,000, up to a maximum of $1 million) of basic term life insurance and may elect optional life insurance up to 10 times their salary, choosing from various levels of life insurance for their spouse/committed partner and their children. The amount of time off varies depending on your workgroup and years of service. 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. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. When our employees look back 50 years from now, they will say, Those people saved Southwest, they saved Southwests jobs, that was Southwests finest hour. Kellys a showman like his hero Kelleher. Southwest Airlines Co pays its employees an average of $84,065 a year. We believe that Southwest Employees have the best contracts in the industry and that they are very well compensated. White recalls a trip from San Diego to Baltimore with one passenger aboard, a physician going to the Washington, D.C., area to treat COVID patients. One hundred people in personnel went to other jobs across the company, such as keeping maintenance records, says Jordan. Southwest is the only large U.S. airline that is also a low-cost carrier. Southwest continues to improve its business model and practices. This growth has made them a major carrier of business travelers, who choose Southwest because of their high frequency in and among big cities, good reliability, and easy usage rules without a lot of fees. Today, Southwest is the third-largest airline globally and serves more than 100 million passengers annually. It wasnt uncommon to make the 2,400-mile trek from Los Angeles to Honolulu with a dozen passengers. 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. The beauty of the time-off program is the ability to ramp up quickly, says Jordan. Comparing the results to its competitors, Southwest Airlines Co reported Total Revenue increase in the 3 quarter 2022 by 32.93 % year on year. The average salaries at PSA Airlines rank the highest, with their employees earning an. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. Write by: . 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. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. The estimated hourly pay at Southwest Airlines ranges from approximately $9.46 per hour for Revenue Manager to $68.65 per hour for Tableau Developer. One-third of Southwests 60,000 employees chose one of the programs.

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