Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. For details regarding Direct Stock Purchase & Dividend Reinvestment and other Transfer Agent information. 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. Our growth plans were stymied by losing the MAX, saysAndrew Watterson,Southwests chief commercial officer. What percentage of Southwest's workforce is unionized? A career at Southwest Airlines includesseveral benefits and perks, from ourlegendary Culture to travel privileges for Employees and their eligible dependents. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. All proxy statements are public filings made available to the general public by the SEC. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. Its pricing strategy offers extremely low prices compared to other large airlines, such as Delta and American Airlines. The COVID hit was far more damaging because we kept getting false dawns, then it would go on and on.. It said, We have no words to describe the damage. They allow a customer to cancel a reservation up to 10 minutes before the flight's departure. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. Even after the voluntary programs took effect, Southwest was still far overstaffed. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. I echoed what Herb Kelleher said during 9/11, says Kelly. The Chair of the Committee shall preside over Committee meetings. 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,. 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. 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. We currently don't have any reviews for this employer. Terms and Conditions.. 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. Plus, as competitors retreated, the top budget carrier had a chance to gain footholds in congested airports that it might never see again. Average Frozen Food Express Industries Salary, Working at Frozen Food Express Industries. They allow a customer to cancel a. Southwest Airlines has set various policies and procedures that make flying with the airline easy. 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. American Airlines 3. 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. 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. Employees have free, unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. We thought getting into OHare would be impossible, says Watterson. 4.2. The collapse in demand for flights throughout 2020 nearly put several airlines out of business, but Southwest was able to survive without major layoffs. 2023 Southwest Airlines Co. All Rights Reserved. The third program allowed workers to take time off in short spurts, a few hours or a day, a week, or a month at a time, also at half-pay. Kellys contingency planned called for a 10% across-the-board pay reduction for nonunion staff, chiefly office workers,sans layoffs. $17.75 per hour. Get in touch with us now. Southwest Airlines does not review past postings to determine whether they remain accurate, and information contained in such postings may have been superseded. This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. And thats what happened. 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. With. Also, proxies must disclose specific detailed information regarding the pay practices for certain executives. 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. Policies like this one ensure that the customers of Southwest Airlines remain satisfied. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. Use our tool to get a personalized report on your market worth. How will Southwest respond? But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. Wed regularly book 40people on the busiest routes, and 16 would board. I like that everyone knows what to do they just get in line with their number and there is no drama. I butted in and said You know what I dont like about flying Southwest? We were planning hundreds of aircraft worth of growth. The blueprint called for around three or four new destinations a year. The Committee will determine the appropriate funding, which must be provided by the Company, for payment of reasonable compensation to any compensation consultant, independent legal counsel, or other adviser retained by the Committee. We were flying around the country with four or five passengers on the737-700 and 800s that carry 143 and 175 passengers,White tellsFortune. 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. Cancel. One of these is Southwest's cancellation policy. But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). Southwest is the only large U.S. airline that is also a low-cost carrier. But airlines are capital on wings. LUV Sales vs. its Competitors Q3 2022. Board of Directors in SOUTHWEST AIRLINES CO. 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. Employees can enroll in long-term disability plans to protect them if they develop a disability and cant work for an extended period. For decades, Southwest has been able to expand during crises because of its low costs, then come back stronger, says industry expert Robert Mann. Find salaries . Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. 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. Recognition is a cornerstone of our Culture. The members of the Committee shall be appointed, removed, or replaced by the Board, and any vacancies on the Committee shall be filled by the Board in accordance with any applicable requirements of the Companys Bylaws and taking into account recommendations from the Nominating and Corporate Governance Committee. Southwest holds the most cash and carries the lowest debt of the major carriers. Southwest has stringent hiring practices and policies to ensure the right mix of team members. United Airlines began as a mail carrying service, and has turned into one of the most popular airlines in the world. Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. Bigger doesn't always mean better, but it usually does mean safer when it comes to investing. Remarkably, Kelly tellsFortune that at least on a quarterly basis, he hasnt given up on achieving Southwests biggest revenues ever by sometime next year, a record no other major is likely to match, or would have the nerve to predict. 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. It wasnt uncommon to make the 2,400-mile trek from Los Angeles to Honolulu with a dozen passengers. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. Customer service representative. Rank Company Name Zippia Score Average Salary; 1: PSA Airlines: 4.9: $46,385: 2: Expeditors: 4.6: . Employees are encouraged to volunteer for causes that matter most to them, and Southwest supports them through our Tickets for Time program which donates round trip tickets to nonprofits based on Employee volunteer hours. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. 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. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. Once again, Kelly leaped in. Subscribe to Fortune Dailyto get essential business stories straight to your inbox each morning. The purpose of the Compensation Committee (the Committee) of the Board of Directors (the Board) of Southwest Airlines Co. (the Company) is to assist the Board with its oversight of (i) compensation of the Companys executives and other employees, as well as non-employee members of the Board; (ii) succession planning; and (iii) human resources policies and practices. Southwest had no extra planes, since it had already retired 67 of its aging Boeing 737-300s to make way for the MAX. Southwest Airlines Gratitude (SWAG) Points. 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 Airlines pays $41,081 per year on average compared to Delta Air Lines which pays $36,132. Now for the first time, they can fly the largest low-cost carrier from nearby OHare. Southwest is a great airline and has been for many years. You can learn more about the standards we follow in producing accurate, unbiased content in our. Baggage handler. Delta pilots approved a new contract that includes 34% raises over four years. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. We take a deep dive into what's impacting employee retention and what employees are looking for in their new role. Delta Air Lines employees rated their Positive Business Outlook 7% higher than Southwest Airlines employees rated theirs. Suddenly, that new arrangement hasmade Miami much more attractive to low-cost competition. 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. most airlines' revenues. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. As adopted by the Board of Directors of Southwest Airlines Co. on February 2, 2022. And the$1.54 billion Southwestowes in PSP debt carries extremely low rates. 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. Compared to the industry average of $38,173 per year, the average annual salary at Southwest Airlines is $41,081, which is 7.62% higher. Southwest is a great airline and has been for many years. That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. Employees enjoy time off for personal use, vacation, or for the care of themselves or a loved one. Offers may be subject to change without notice. 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. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. 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 See how working at Delta Air Lines vs. Southwest Airlines compares on a variety of workplace factors. Read more Southwest Airlines reviews (4167), Ramp Agent (Customer Service Agent) - JFK, Analytics Specialist, Data Translator, Storyteller, Neurodiversity Internship Program - Systems Engineer Intern Summer 2023 - Remote. Southwest Airlines Employees in Seattle, WA don't earn quite as much. Why do people leave their jobs? 4.0. Thorough reviews have been conducted to assure this data accurately reflects disclosures. Founded: April 6, 1926. This is especially true in the uncertain demand environment that all airlines face today. The union contracts required that Southwest provide advance notice of the cuts to come if the flight attendants, pilots, and other groups failed to present a plan to reach that 10% target. $39,360 per year. Through this sound strategy, Southwest achieved multiple competitive advantages that have allowed it to stay relevant in a rapidly changing world. The Air Line Pilots Association . Use of the Southwest websites and our Company Information SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. The early-retirement packages included cash buyouts plus generous health and travel benefits. But behind the Churchillian fervor is a solid plan to do once again what Southwest has always accomplished coming out of a crisisto soar while rivals are still revving on the tarmac. In the past, that didnt happen because the airport was chockablock with takeoffs and landings. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step 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. Core competencies are the resources and capabilities that comprise the strategic advantages of a business. Job Security/Advancement. The Committee shall maintain minutes of its meetings and report on its activities to the full Board. 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. $41,064 per year. While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been its deep focus on hiring the right people. The estimated salary at Southwest Airlines ranges from approximately $31,756 per year for Payroll Coordinator to $161,713 per year for Principal Software Engineer. Keeping customers engaged is a big competitive advantage for Southwest Airlines. The lifeline saved Southwest from imposing the first layoffs and pay reductions in its history, six months before the 50-year mark. 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. [ 2] Here is an in-depth analysis of top Southwest's competitors and alternatives: 1. For more than 50 years, Southwest has connected People and championed communities. You cant take care of people without taking care of the company,says Kelly. A comeback on that scale would be heroic, considering the depth of the drop, and how long the pandemic crunched air travel to the levels of the 1970s. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following CEO pay ratio data on its annual proxy statement to the SEC. To stanch the bleeding,Kelly indeed slashed outlays. Theyre centered around supporting the physical, mental, and financial health and wellbeing of our Employees and their families. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. At Southwest Airlines, employees working in engineering jobs and finance jobs tend to earn the highest salaries. What Is The Salary Of The Ceo Of Southwest Airlines? 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. Salaries By Southwest Airlines Competitors. Southwest is the only large airline that can compete on price. The Board shall appoint one member of the Committee as chairperson (Chair) of the Committee. perform such additional functions as may from time to time be assigned to the Committee by the Board. Its unit costs are lower than the big three, but it also doesnt have the international network or fleet complexity. The fight for higher-paying business travelers has always been the game of the larger airlines, and the elimination of change fees repositions that balance. The Committee shall meet as often as the Committee, the Board, or the Chair of the Committee may deem necessary or appropriate for the Committee to fulfill its responsibilities. Employees choose from medical coverage options ranging from preferred provider organizations (PPOs) to a high deductible health plan. He achieved that feat by deploying planes parked at desert airfields, and crews grounded by the pandemic, thatSouthwest still paid for, and dispatching them to thenew routes, a gambit that brought sorely needed revenue. In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. United Airlines partners with smaller airlines across the . While we have made attempts to ensure that the information displayed are correct, Zippia is not responsible for any errors or omissions or for the results obtained from the use of this information. 4.3 out of 5 stars for Compensation/Benefits. Southwest was first in the airline industry to offer a ProfitSharing Plan. The FAA had effectively frozen the number of landing and takeoff slots or times, making it impossible for Southwest to expand there, and challengeUnited and American, the two carriers thataccount for almost 80% of its traffic. 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.