We believe that Southwest Employees have the best contracts in the industry and that they are very well compensated. Southwest covers a generous amount of the cost, making the monthly amount Employees pay for medical and prescription drug coverage for themselves and their families competitively affordable. In Q2 of last year, Southwest suffered an 87% drop inpassenger revenues from $5.5 billion to $700 million, causing a staggering loss of$1.1 billion. The Chair of the Committee shall preside over Committee meetings. Plus, as competitors retreated, the top budget carrier had a chance to gain footholds in congested airports that it might never see again. It only has a few aircraft types, which helps the airline reduce its costs. Employees can enroll in long-term disability plans to protect them if they develop a disability and cant work for an extended period. Through this sound strategy, Southwest achieved multiple competitive advantages that have allowed it to stay relevant in a rapidly changing world. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. The second: extended time off, or ETO, in whichemployees could elect to stop working for six, 12, or 18 months at half-pay. He curbed such capital expenditures as tech investments and airport expansions. Dental coverage options include preventive, basic, major, and orthodontic care. That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. If Southwest exercises all optionsa strong possibility if its growth opportunities match Kellys expectationsit could operate a fleet of almost 1,100 planes in 10 years, an increase in capacity of 50%. United Airlines Holdings 4. Southwest Airlines is strong from both a size and a cost perspective. Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. 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 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. The information shown here is a reporting of information included in the company's proxy statement. Which benefits does Southwest Airlines provide? 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. COVID might not be a short, quick shock like 9/11, but a long-lasting plague that hammered commercial aviation harder than any other big business. 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. 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. FORTUNE may receive compensation for some links to products and services on this website. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). LUV Sales vs. its Competitors Q3 2022. The $5.4 billion Payroll Support Program (PSP)grants and loans from the Treasury kept that number from going far higher. But in order to get new employees, Delta has accepted it will have to raise wages. Yes, they still run great sales now and then. To create our salary estimates, Zippia starts with data published in publicly available sources such as the U.S. Bureau of Labor Statistics (BLS), Foreign Labor Certification Data Center (FLC). 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. Southwest was first in the airline industry to offer a ProfitSharing Plan. "About This Company" data & logos provided by, Los Angeles County Metropolitan Transportation Authority. In the past, that didnt happen because the airport was chockablock with takeoffs and landings. Cost per available seat mile (CASM) is a measure of an airplane's cost to operate and ability to generate revenues. 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. The employee data is based on information from people who have self-reported their past or current employments at Southwest Airlines. But in December, Kelly reached an agreement with the Treasuryfor additional aid. This is especially true in the uncertain demand environment that all airlines face today. Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. 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. Southwest has stringent hiring practices and policies to ensure the right mix of team members. This time, they took advantage of once-in-a-lifetime opportunities.. Put simply, Kelly grabbed plans off the shelf scheduled to take five years or more and exploited the pandemic to fast-track thecampaign. And thats what happened. 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. could be sentient says Microsofts chatbot feels like watching the Shark Tank investor Kevin OLeary says a new generation of employee has never worked in an officeand its totally I cant afford to sell because I dont want to lose that rate: 3% mortgage rates will loom large over the U.S. CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. Southwest had to build its business model around low operating costs to be able to offer low prices. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. Here's more information on Southwest Airlines' competitors : #1. 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. I cant promise we wont lay people off, but I can promise its the last thing well do.. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. We take a deep dive into what's impacting employee retention and what employees are looking for in their new role. 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. New research on who's asking for raises and who's getting them as well as advice on how to ensure you're getting the salary you deserve. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. Employees have free, unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. 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. 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. Rank Company Name Zippia Score Average Salary; 1: PSA Airlines: 4.9: $46,385: 2: Expeditors: 4.6: . Find information about retirement plans, insurance benefits, paid time off, reviews, and more. Find salaries . 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. 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. The losses swelled Southwests debt level from a slender$1.85 billion at the close of 2019 to $10.55 billion in Q1. Cancel. The airline assembled a list of 50 domestic airports where it wanted to start service. One way of measuring strength is size. Total Equity aggregates grant date fair value of stock and option awards and long term incentives granted during the fiscal year. Theyre centered around supporting the physical, mental, and financial health and wellbeing of our Employees and their families. Each member of the Committee will be entitled to rely, to the fullest extent permitted by law, upon the integrity of those persons or organizations within and outside the Company from whom it receives information and the accuracy of the information. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. 1,214 reviews from Southwest Airlines employees about Pay & Benefits Find jobs. This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. It has pushed the industry in many positive trends, but this is an aggressive industry. 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. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. You cant take care of people without taking care of the company,says Kelly. A Company-paid concierge service is also available to those enrolled in this plan. It also services smaller airports that don't charge as much for gate access. Southwest Airlines pays $19.75 an hour, on average. Board of Directors in SOUTHWEST AIRLINES CO. 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. They allow a customer to cancel a. Delta pilots approved a new contract that includes 34% raises over four years. 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,. Loved it! 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. Plus, we offer several volunteer opportunities throughout the year to allow Employees to make a difference with their Southwest Family. Southwest. Flying to Miami prevents our customers from Chicago or the Northeast from leaking to other airlines.. Baggage handler. It also has a partnership with Chase Bank and offers customers a Southwest credit card. Pass benefits are difficult to use now because of overbooking permitted on all flights.. Current Employee - Customer Service Representative, Great job if you are good at customer service. Were still Americas top low-cost airline, were still number one in democratizing the skies, and coming out of the crisis, well take lots of market share from our competitors.. We want to set up our People, both present and future, to achieve their professional goals. Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. Compare Southwest Airlines with. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. And the$1.54 billion Southwestowes in PSP debt carries extremely low rates. Find your market worth with a report tailored to you, No results found. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. 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. Southwest. I write about airlines and travel to explain this crazy industry. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. 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. Therefore, actual results may differ materially from what is expressed in or indicated by the Companys forward-looking statements. 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. Checked baggage is mostly a leisure traveler behavior. Hence, Kelly predicted that for their size, those leisure destinations would generate far more new passengers than the business as a whole. From compensation planning to variable pay to pay equity analysis, we surveyed 4,900+ organizations on how they manage compensation. Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. 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. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? But long ago they used to advertise that their highest fare was $299. United Airlines. Save for retirement through our 401(k) Plan with pre-tax or Roth after-tax contributions. To the extent permitted by applicable law and regulations, the Committee may delegate its powers, authority, duties and responsibilities to subcommittees or individual members of the Committee, as it deems appropriate. It is boosted by a flexible business model that supports rapid change. Southwest Airlines employees rate the overall compensation . $41,064 per year. While the Committee has the powers, authority, duties, and responsibilities set forth in this Charter, the role of the Committee is to assist the Board in its oversight responsibilities. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Southwest Airlines has set various policies and procedures that make flying with the airline easy. We had no plan for starting service there at all.. Southwest Airlines Co employee benefits and perks data. Investopedia does not include all offers available in the marketplace. For more than 50 years, Southwest has connected People and championed communities. One of these is Southwest's cancellation policy. Working at Greatwide Dedicated Transport LLC. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. Today, nine in 10 of the employees who went on leave have returned to full-time work. . 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. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. Id never read a message from the finance staff anything like that dark. Still, it was clear by October that the crisis was dragging on so long that theaidSouthwest had received from the CARES Act Payroll Support Program wasnt adequate to prevent layoffs and pay cutsunless Washington stepped up with more rounds of assistance. Can Southwest hold out even after other airlines have waived change fees. The amount of time off varies depending on your workgroup and years of service. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. Part of that customer experience comes from the attitude and helpfulness of the employees it hires. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. 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. 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. 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 addition, the Committee shall have the powers, authority, duties, and responsibilities described below. What percentage of Southwest's workforce is unionized? Pre-COVID, Southwest was serving markets that sold a total of $63 billion in tickets a year. Both tied in 1 area: Diversity & Inclusion. The difference in fees made it extremely difficult for a low-cost carrier like Southwest, says Mann. Compare. But United aimed right at this and said no more.. On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the . When were looking for leisure customers, the best places are those smaller locales, says Watterson. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. Q1 2023 Southwest Airlines Financial Results Conference Call. 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. 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. 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. 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. One-third of Southwests 60,000 employees chose one of the programs. Learn more about each company and apply to jobs near you. 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. 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. 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. Bob Jordan formerly worked as the Executive Vice President of Southwest Airlines, where his salary was $3,049,336. Highest Paying Department At Southwest Airlines, Highest Paying Location At Southwest Airlines. Many of the folks flying Southwest are regular customers from such hubs as New Yorks LaGuardia and Midway who vacation or do business in Miami, but couldnt fly there on their favorite carrier and didnt want to get stuck in traffic driving south on I-95 from Fort Lauderdale. 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. You may also find the annual proxy statement by going directly to the company's website. The median salary in Seattle, WA is $48,057. 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. 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. Offers may be subject to change without notice. perform such additional functions as may from time to time be assigned to the Committee by the Board.