Employee Ratings. 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). Starting in mid-November, Southwestintroduced service to Colorados Steamboat Springs, Telluride, and Colorado Springs; Californias Fresno, Santa Barbara, and Palm Springs; Floridas Sarasota/Bradenton and Destin/Fort Walton Beach; and Savannah/Hilton Head, as well as eight other first-time destinations. 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. From compensation planning to variable pay to pay equity analysis, we surveyed 4,900+ organizations on how they manage compensation. Southwest. Job Security/Advancement. The recent cancellation of most domestic change fees will be a tough one to lose, however. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. Southwest's main competitors are-American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, and Air France KLM. Controlling costs is also crucial to surviving a downturn, and Southwest does well there too. 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. In March, Southwest made the biggest new purchase since the MAX returned to service, raising its firm orders by 100 planes, and on June 7 it cited the faster-than-expected rebound to add another 34 MAX aircraft to its book. The airline assembled a list of 50 domestic airports where it wanted to start service. Bigger doesn't always mean better, but it usually does mean safer when it comes to investing. This is especially true in the uncertain demand environment that all airlines face today. Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Customer service representative. I dont expect this to happen, but in the endless search for revenue to cover higher costs, nothing should be taken off the table. 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. The average salaries at PSA Airlines rank the highest, with their employees earning an. Of course, its biggest single cost by far is wages, salaries, and benefits,accounting in 2019 for 43% of operating costs, and for Southwest to survive, that huge nut had to shrink drastically. Noncontract Employees receive coverage from a Company-paid short-term disability plan if an illness or injury lasts more than one week. 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. I write about airlines and travel to explain this crazy industry. The atmospherics were like something out of a disaster movie. Thepicture improved only slightly for the rest of the year; by Q4, ticket sales were still almost69% below 2019 levels. A shift towards, Handling involuntary termination is a likely occurrence for human resources managers and, Return better results with Payscale job search, Compare real living costs across different states, Consider potential directions your career can take, Calculate the 20-year net ROI for US-based colleges, Are you the kind of person who struggles to get a handle, Learn where the best career earners attended college. Boeing also has over 200 of the larger 737-800s, which are far younger and have years of service ahead. 4.0. Southwests not just thesolemajor to grow its footprint big-time in the pandemic; its also the only one not to impose huge layoffs and pay cuts. 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. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. Southwest Airlines does not review past postings to determine whether they remain accurate, and information contained in such postings may have been superseded. Southwest offers an excellent benefits package, including a generous dollar-for-dollar Company match in the 401 (k) Plan, subject to vesting requirements and certain compensation limits, as well as a ProfitSharing Plan. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. At the national level, Southwest makes a positive impact on our communities by supporting a number of issues through our charitable relationships. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. Therefore, actual results may differ materially from what is expressed in or indicated by the Companys forward-looking statements. It only has a few aircraft types, which helps the airline reduce its costs. Company reviews. Save for retirement through our 401(k) Plan with pre-tax or Roth after-tax contributions. Both tied in 1 area: Diversity & Inclusion. None of the information on this page has been provided or approved by Southwest Airlines. 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. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. 4.3 out of 5 stars for Compensation/Benefits. One time on a scheduled flight from Chicago to Houston, four people were booked, and nobody showed up. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? It is boosted by a flexible business model that supports rapid change. 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. Use of the Southwest websites and our Company Information constitutes acceptance of our Terms & Conditions, Privacy Policy. 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 Then Kelly planned to launch a long-term offensive in the U.S. by flying to new places. We also reference original research from other reputable publishers where appropriate. Use of the Southwest websites and our Company Information What Benefits Does Southwest Airlines Offer? Southwest coming to town is a big deal in those markets. 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? Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. The second: extended time off, or ETO, in whichemployees could elect to stop working for six, 12, or 18 months at half-pay. And despite losing the MAX aircraft, Southwest honored its commitment to serve Honolulu and the other Hawaiian destinations in 2019 and early 2020, worsening the shortage. Southwest Airlines scored higher in 1 area: Compensation & Benefits. Now for the first time, they can fly the largest low-cost carrier from nearby OHare. In February of 2022, Southwest Airlines appointed a new CEO, Bob Jordan. 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.. SOUTHWEST AIRLINES CO annual reports of executive compensation and pay are most commonly found in the Def 14a documents. 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. Southwest already entered the crisis hamstrung by the grounding of the aircraft its counting on for future expansion, the Boeing 737 MAX. Current Employee - Customer Service Representative, Great job if you are good at customer service. Southwest Airlines is an Equal Opportunity Employer. One-third of Southwests 60,000 employees chose one of the programs. Southwest Employees play a large role in making a positive difference in the communities we serve. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. Salaried employees switched roles. Now Southwest is backing its growth plans with the most ambitious aircraft expansion program of any major. About 1,500 of the 17,000 flight attendants got those furlough letters late last year, and I was flying with some of them, says White. Compare. Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. Southwest Airlines offers automated options to receive Investor Alerts. 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. So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. Pre-COVID, Southwest was serving markets that sold a total of $63 billion in tickets a year. The point here is that for narrow body service within the U.S., Southwests cost advantage to the big three U.S. airlines has largely gone away the big carriers costs where they fly against Southwest are similar. "About This Company" data & logos provided by, Los Angeles County Metropolitan Transportation Authority. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. 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. Southwest is a great airline and has been for many years. 9/11 was awful, but we recovered quickly, he observes. The airline couldn't managed to keep its . But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. For contract, or union workers, the airline directed each group to reduce its 2019 costs by 10% in 2021. 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. Can Southwest hold out even after other airlines have waived change fees. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! Readers should not assume that the information contained on this site has been updated or otherwise contains current information. Also, proxies must disclose specific detailed information regarding the pay practices for certain executives. This report is not for commercial use. It said, We have no words to describe the damage. 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. Investopedia does not include all offers available in the marketplace. United Airlines Holdings 4. Southwest gives points to customers. Yet within months Southwest roared back to post steady profits. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. 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. Employee-focused companies are dedicated to creating an atmosphere in which employees can be. 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 has achieved its biggest expansion ever in its deepest downturn just as it prepares to celebrate its 50th anniversary on June 18. Write by: . Keeping customers engaged is a big competitive advantage for Southwest Airlines. Southwest holds the most cash and carries the lowest debt of the major carriers. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. 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. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. Southwest Airlines has set various policies and procedures that make flying with the airline easy. Employees share in the success of Southwest with our ProfitSharing Plan, which rewards them for their contributions to Southwests profitability. Salaries at Southwest Airlines can vary depending on the department or organizational function. Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. Southwest Airlines Co employees with the job title Software Engineer make the most with an average. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. 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. limited business travel to go around, the recent removal of change fees helps to make United, Delta, and American more competitive for this group. 4.2. Pilots arent eligible, but may elect long-term disability coverage through Southwest Airlines Pilots Association (SWAPA). The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. 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. A manager, custom support and services at Southwest Airlines earns an average yearly salary of $27,625. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. Both tied in 3 areas: Culture & Values, Diversity & Inclusion and Career Opportunities. How do we recover?Marveling at a 97% drop in traffic from 2019, and a cash burn of $200 millionthat week, Kelly couldnt help wondering the same thing. Finally, none of this would be possible without a motivated team of employees. Furthermore, their strategy also includes a deep focus on customer experience and looking ahead. 1,214 reviews from Southwest Airlines employees about Pay & Benefits Find jobs. These flexible policies help the airline to build high levels of brand loyalty. The salary of the CEO of Southwest Airlines, Mark King, is $5.7 million. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. $53,200 per year. In 2015, Southwest Airlines became the leading carrier in terms of market share and surpassed its main competitors, American Airlines and Delta Air Lines. While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been its deep focus on hiring the right people. In Chicago, Southwest had longbeen the dominant carrier in Midway. 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. We wanted to make our network more dense, to get more connectivity. Like Southwest Airlines Co workers, numerous employees in the United States take advantage of group health insurance funded by their employer, through which a Read more, Compare the work satisfaction, stress and gender at Southwest Airlines Co with similar employers, Streamlined solutions for every step of the compensation management journey, Continuously updated compensation datasets from Payscale and our partners, Flexible, customizable services and support for Payscale customers, End comp guesswork with our free job-pricing tool, From collection to validation, our data methodology delivers certainty, Meet the leaders dedicated to empowering better conversations around pay, Track and compare wage-growth by city, industry, company size, and job category, Access helpful tools and insights for career planning and salary negotiation, Explore real-world career trends and advice from the leaders in compensation, Uncover detailed salary data for specific jobs, employers, schools, and more, Take our salary survey to see what you should be earning. 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. Qualitative analysis evaluates a company's unquantifiable aspects such as management style and worker loyalty. Southwest Airlines also has one of the better rewards programs in the industry. 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. All proxy statements are public filings made available to the general public by the SEC. Theyd never seen that from Southwest before. If the unions didnt come through, the workforce would shrink by 6,000, or over 10%. You may also find the annual proxy statement by going directly to the company's website. . The FAA approved the737 MAX to fly again in December, and by March Southwests MAX fleet had returned to service. But what they did during the pandemic is the Big Gulp version of what they usually do. 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. The average Southwest Airlines salary ranges from approximately $39,092 per year for a Ticket Agent to $375,546 per year for a Senior Director. 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. When business conditions decline, only the strong survive. A business model is a company's profit-making plan which defines the products or services it will sell, its target market, and any expected costs. Many folks who live near OHare on the far north side didnt take Southwest before because they dreaded making the long drive south to Midway. Community outreach For more than 50 years, Southwest has connected People and championed communities. "I get this business customer." We had more customers than we could serve in Denver, Austin, Houston, Fort Lauderdale, Nashville, and more cities, says Kelly. For details regarding Direct Stock Purchase & Dividend Reinvestment and other Transfer Agent information. And the$1.54 billion Southwestowes in PSP debt carries extremely low rates. Southwest had no extra planes, since it had already retired 67 of its aging Boeing 737-300s to make way for the MAX. Find your market worth with a report tailored to you, No results found. Delta Air Lines employees rated their Recommend to a friend 8% higher than Southwest Airlines employees rated theirs. Privacy Policy. The amount of time off varies depending on your workgroup and years of service. Core Competencies in Business: Finding a Competitive Advantage, Overview of Insurtech & Its Impact on the Insurance Industry, Cost Per Available Seat Mile (CASM): Definition, Formula, Example, Value Chain: Definition, Model, Analysis, and Example, business model around low operating costs. 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. That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. Why do people leave their jobs? Flight attendant. 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. The company has about 54,000 workers nationwide, including 1,000 in North Texas at its corporate. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. 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. Get in touch with us now. Southwest Airlines has a business-oriented focus on the customer's experience. 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. Southwest is one of the big four airlines in the U.S., along with American Airlines (AAL), Delta (DAL), and United (UAL). 2023 Southwest Airlines Co. All Rights Reserved. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. 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. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. . We were planning hundreds of aircraft worth of growth. The blueprint called for around three or four new destinations a year. Our growth plans were stymied by losing the MAX, saysAndrew Watterson,Southwests chief commercial officer. Entering the recovery, it will reach airports that do another $13 billion in business, a jump of 20% in what Watterson calls the pond we can fish in. The upshot: Kelly predicts that the surge in leisure travelers could by 2022 more than offset the decline in business traffic, lifting Southwest back to 2019 levels well before its big competitors get there. Clear Skiesour Employee Assistance Program (EAP). Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. Southwest plans to hire 8,000 workers this year after hiring more than 5,000 at the end of 2020. Employees and family members have access to eight free counseling sessions and work/life balance tools. Southwest continues to improve its business model and practices. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. Delta pilots approved a new contract that includes 34% raises over four years. Kelly tells Fortune that the most distressing part of the crisis was the prospect of punishing the workforce.
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