southwest airlines employee compensation compared to competitors southwest airlines employee compensation compared to competitors

The information shown here is a reporting of information included in the company's proxy statement. The average Southwest Airlines hourly pay ranges from approximately $19 per hour for a Ticket Agent to $105 per hour for a Sr Systems Engineer. 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. Investopedia requires writers to use primary sources to support their work. frontier airlines ceo salary. 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. The company has about 54,000 workers nationwide, including 1,000 in North Texas at its corporate. Compare. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Employees can save money by making tax-free contributions to flexible spending accounts for health-care and dependent childcare. Southwest Airlines is more flexible than most other large airlines. It also services smaller airports that don't charge as much for gate access. By contrast, the global industry lost 400,000 workers, and American alone laid off 32,000. Id never read a message from the finance staff anything like that dark. Southwest continues to improve its business model and practices. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. Our growth plans were stymied by losing the MAX, saysAndrew Watterson,Southwests chief commercial officer. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. limited business travel to go around, the recent removal of change fees helps to make United, Delta, and American more competitive for this group. They focus on providing the lowest prices for the most popular routes, which means fewer routes will need to be abandon. It owes that edge to two factors: the land graborchestrated during the pandemic, and its financial strength. One-third of Southwests 60,000 employees chose one of the programs. FORTUNE may receive compensation for some links to products and services on this website. We almost lost a zero, says Bob Jordan,EVP of corporate services. Total Equity aggregates grant date fair value of stock and option awards and long term incentives granted during the fiscal year. Working at Greatwide Dedicated Transport LLC. A typical senior software engineer salary at Southwest Airlines is $120,951. Terms and Conditions.. At Southwest Airlines, employees working in engineering jobs and finance jobs tend to earn the highest salaries. Southwest coming to town is a big deal in those markets. Employees have free unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. 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. Dental coverage options include preventive, basic, major, and orthodontic care. Current Employee - Senior Software Developer. 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. Paper enlightens that if a service firm gives priority to its employees than customers, it automatically serves customers in better way as services of a company are given through employees and. 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. You cant take care of people without taking care of the company,says Kelly. Write by: . United Airlines began as a mail carrying service, and has turned into one of the most popular airlines in the world. Miamis taking off like a rocket, he says. 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. The beauty of the time-off program is the ability to ramp up quickly, says Jordan. Save for retirement through our 401(k) Plan with pre-tax or Roth after-tax contributions. The data presented on this page does not represent the view of Southwest Airlines and its employees or that of Zippia. 2023 Southwest Airlines Co. All Rights Reserved. Privacy Policy. 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. All Rights Reserved. A manager, custom support and services at Southwest Airlines earns an average yearly salary of $27,625. While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been its deep focus on hiring the right people. Departments that don't pay as well at Southwest Airlines include the customer service and warehouse organizational functions, with employees earning $31,175 and $35,038, respectively. "Refunds For Flight Reservations.". The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. The starting pay at Southwest Airlines is $19,000 per year, or $9.13 per hour. 4.0. Kellys contingency planned called for a 10% across-the-board pay reduction for nonunion staff, chiefly office workers,sans layoffs. One said to the other You know what I like about flying Southwest? But airlines are capital on wings. perform such additional functions as may from time to time be assigned to the Committee by the Board. The timing of these postings are made at the discretion of Southwest Airlines. He curbed such capital expenditures as tech investments and airport expansions. But in order to get new employees, Delta has accepted it will have to raise wages. Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. For decades, Southwest has been able to expand during crises because of its low costs, then come back stronger, says industry expert Robert Mann. A proxy statement (or "proxy") is a form that every publicly traded U.S. company is required to file with the U.S. Securities & Exchange Commission (SEC) within 120 days after the end of its fiscal year. Headquarters: Chicago, Illinois, United States. Working at Integrated Airline Services, Inc. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events, or developments, except as required by federal securities laws. It is how the company handles the risks and uncertainties . Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Pre-COVID, Southwest was serving markets that sold a total of $63 billion in tickets a year. That puts the company in a better position to deal with the disruptions caused by economic events that are beyond its control. When were looking for leisure customers, the best places are those smaller locales, says Watterson. The FAA approved the737 MAX to fly again in December, and by March Southwests MAX fleet had returned to service. It wasnt uncommon to make the 2,400-mile trek from Los Angeles to Honolulu with a dozen passengers. 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 But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. With net margin of 4.45 % company . Pay, Whether you are hiring a single employee , or an entire department of, The labor market is a strange place right now. Noncontract Employees receive coverage from a Company-paid short-term disability plan if an illness or injury lasts more than one week. Dominating the wish list of 50 destinations were smaller, beach-or-mountain vacation venues. Theyre centered around supporting the physical, mental, and financial health and wellbeing of our Employees and their families. 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. Average Frozen Food Express Industries Salary, Working at Frozen Food Express Industries. 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. Theyd never seen that from Southwest before. If the unions didnt come through, the workforce would shrink by 6,000, or over 10%. New research shows how to set pay for remote employees. It has pushed the industry in many positive trends, but this is an aggressive industry. . It is boosted by a flexible business model that supports rapid change. Salaries are taken from job posts or reported by employees and are not adjusted for level or location. Controlling costs is also crucial to surviving a downturn, and Southwest does well there too. Southwest Airlines is approximately 83 percent unionized. 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. 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? Wed regularly book 40people on the busiest routes, and 16 would board. $41,064 per year. Southwest Airlines is strong from both a size and a cost perspective. That quietly went away as Southwest has taken the lead over the last number of years in raising fares, especially as they have become more dominant in their biggest operational geographies. 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. They now sit at the high-fare poker table with a suddenly weaker hand. Southwest. You can learn more about the standards we follow in producing accurate, unbiased content in our. Based on our research, similar companies to Southwest Airlines are PSA Airlines, Expeditors, and American Airlines. The Air Line Pilots Association . Alaska Airlines 8. Clear Skiesour Employee Assistance Program (EAP). If enrolled in a high deductible plan, a health savings account (HSA) is available for Employees to save for eligible healthcare expensesnow or in the future. 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. Can Southwest hold out even after other airlines have waived change fees. Bigger doesn't always mean better, but it usually does mean safer when it comes to investing. Employees share in the success of Southwest with our ProfitSharing Plan, which rewards them for their contributions to Southwests profitability. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. Investopedia does not include all offers available in the marketplace. Thedeparturestotaled 4,500. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! 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. Current Employee - Customer Service Representative, Great job if you are good at customer service. A Company-paid concierge service is also available to those enrolled in this plan. Bob Jordan formerly worked as the Executive Vice President of Southwest Airlines, where his salary was $3,049,336. For contract, or union workers, the airline directed each group to reduce its 2019 costs by 10% in 2021. Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. The card allows them to accumulate Southwest Airlines points when making other purchases. 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. It was a great way to help us offset big fixed costs thatare impossible to cut, says Kelly. Adds Watterson: We were looking for ways to keep people busy and reduce cash burn.. Recognition is a cornerstone of our Culture. 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 Delta Air Lines and Southwest Airlines employees and others in your industry. 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. 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. 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. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. But Southwest faces stiff competition from Delta, United, American, Spirit, JetBlue, and WestJet. All proxy statements are public filings made available to the general public by the SEC. Put simply, Kelly grabbed plans off the shelf scheduled to take five years or more and exploited the pandemic to fast-track thecampaign. 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. 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. One way of measuring strength is size. 4.3 out of 5 stars for Compensation/Benefits. Employee Focus One of Southwest's competitive advantages is its focus on its employees. 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. 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? At the time,it planned only one addition, Houston Intercontinental, for early 2021, as part of the fanfare for Southwests 50th anniversary, since it had flown there in the early days before moving to smaller William P. Hobby Airport. That means Southwest has bigger reserves in cash, credit, and other assets than smaller airlines. But what they did during the pandemic is the Big Gulp version of what they usually do. Offers may be subject to change without notice. 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. 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.. It is frequency, reliability and simplicity that form the core of Southwests competitive advantage today, and these are considerable and important. InApril 2020, Southwest introduced three options for flight attendants, pilots, maintenance workers, salaried employees,and all other groups. 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. Read reviews from current employees that include compensation and culture insights. All rights reserved. Employees can choose from a broad spectrum of investment options and roll over any eligible funds from a previous employer. 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 amount of time off varies depending on your workgroup and years of service. At Southwest, you're empowered to create your own career; one that fits the goalsand lifestyleyou want. 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 does not review past postings to determine whether they remain accurate, and information contained in such postings may have been superseded. Use of the Southwest websites and our Company Information constitutes acceptance of our Terms & Conditions, Privacy Policy. We were planning hundreds of aircraft worth of growth. The blueprint called for around three or four new destinations a year. On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the . SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. 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. And the$1.54 billion Southwestowes in PSP debt carries extremely low rates. The atmospherics were like something out of a disaster movie. Delta. Southwest Airlines Co employees with the job title Software Engineer make the most with an average. Southwest Airlines employees rate the overall compensation . To stanch the bleeding,Kelly indeed slashed outlays. The lifeline saved Southwest from imposing the first layoffs and pay reductions in its history, six months before the 50-year mark. [ 2] Here is an in-depth analysis of top Southwest's competitors and alternatives: 1. 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. Kelly tells Fortune that the most distressing part of the crisis was the prospect of punishing the workforce. But at the same time, he showed the vision and moxie to pursue a superambitious flight plan for growth. Our Fair Pay score for Southwest Airlines Co is 3.32. Employees and family members have access to eight free counseling sessions and work/life balance tools. 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. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following CEO pay ratio data on its annual proxy statement to the SEC. Even after the voluntary programs took effect, Southwest was still far overstaffed. 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. In 2015, Southwest Airlines became the leading carrier in terms of market share and surpassed its main competitors, American Airlines and Delta Air Lines. Both tied in 3 areas: Culture & Values, Diversity & Inclusion and Career Opportunities. Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. The ace was planting the flag in two major destinations, one where Southwest had no hopes of flying, and the other where the journey would have taken years. The employee data is based on information from people who have self-reported their past or current employments at Southwest Airlines. 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. Southwest Airlines offers benefits to full-time employees including: Accidental death and dismemberment insurance. Terms & Conditions. The Committee shall consist of at least two members of the Board, each of whom shall meet applicable independence requirements of the New York Stock Exchange. Nevertheless, Southwest has managed to beat the odds, with a 96% retention rate, 44 straight years of profitability, and no layoffs in their history. Southwest is the only large airline that can compete on price. 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. Need to Know. We want to set up our People, both present and future, to achieve their professional goals. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. Therefore, actual results may differ materially from what is expressed in or indicated by the Companys forward-looking statements. Subscribe to Fortune Dailyto get essential business stories straight to your inbox each morning. That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. Community Giving Boards comprised of local Employees decide how Southwest gives back to charities in their neighborhoods, tapping into the passion points of their community. From compensation planning to variable pay to pay equity analysis, we surveyed 4,900+ organizations on how they manage compensation. Part of that customer experience comes from the attitude and helpfulness of the employees it hires. The fired Google engineer who thought its A.I. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. You may also find the annual proxy statement by going directly to the company's website. Salaried employees switched roles. Which benefits does Southwest Airlines provide? Southwest is one of the big four airlines in the U.S., along with American Airlines (AAL), Delta (DAL), and United (UAL). 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. One time on a scheduled flight from Chicago to Houston, four people were booked, and nobody showed up. Southwest is the only large U.S. airline that is also a low-cost carrier. 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. 1,214 reviews from Southwest Airlines employees about Pay & Benefits Find jobs. If Southwest does lose some of its significant business base as a result of the change fee going away, baggage would be an obvious place for it to recover some of that lost revenue. More importantly, the funds from the cancellation are available for a future trip. 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.