Find your market worth with a report tailored to you, No results found. In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). From 2020 to 2024, we planned on a big, five-year growth run.. Indicates external site which may or may not meet accessibility guidelines. The problem was that the airport charged what amounted to big fees per passenger that were traditionally several times higher than in Fort Lauderdale. 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. Prior to the pandemic, giant OHare wasnt even on Southwests list. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. 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. Together, along with a little over $100,000 in other gifts and compensations, he made $5.7 million in 2021. One said to the other You know what I like about flying Southwest? Use our tool to get a personalized report on your market worth. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. Also, proxies must disclose specific detailed information regarding the pay practices for certain executives. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. But in December, Kelly reached an agreement with the Treasuryfor additional aid. One of these is Southwest's cancellation policy. The FAA approved the737 MAX to fly again in December, and by March Southwests MAX fleet had returned to service. This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. 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. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Kelly took the idle planes off the tarmac andback to work, laying the groundwork for a fast ascentonce the crisis lifted. Alaska Airlines 8. It has pushed the industry in many positive trends, but this is an aggressive industry. Even after the voluntary programs took effect, Southwest was still far overstaffed. Our growth plans were stymied by losing the MAX, saysAndrew Watterson,Southwests chief commercial officer. I cant promise we wont lay people off, but I can promise its the last thing well do.. 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. Why do people leave their jobs? Save for retirement through our 401(k) Plan with pre-tax or Roth after-tax contributions. Southwest Airlines is more flexible than most other large airlines. But airlines are capital on wings. Offers may be subject to change without notice. Need to Know. The higher fares Southwest charges today are necessary because of cost increases due to people and airplanes, and size that makes it difficult to mitigate with growth alone. 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. 4.0. For several decades, Southwest Airlines was the envy of the airline industry because of multiple competitive advantages: a low-cost structure that stayed low due to fast growth, happy employees who liked their jobs and translated that to customers, loved by customers and the government for its low fares and creating strong competition, unique in its customer flexibility with no bag or change fees, and more. A lot of operating expenses flow from customer volumes, he notes. Learn more about each company and apply to jobs near you. I echoed what Herb Kelleher said during 9/11, says Kelly. Try another search query or. None of the information on this page has been provided or approved by Southwest Airlines. Southwest Airlines has set various policies and procedures that make flying with the airline easy. 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? $39,360 per year. The difference in fees made it extremely difficult for a low-cost carrier like Southwest, says Mann. Can Southwest hold out even after other airlines have waived change fees. Southwest Airlines has a track record for being very forward-thinking. The employee data is based on information from people who have self-reported their past or current employments at Southwest Airlines. Employees share in the success of Southwest with our ProfitSharing Plan, which rewards them for their contributions to Southwests profitability. 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.. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. 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. You can learn more about the standards we follow in producing accurate, unbiased content in our. Employees enjoy time off for personal use, vacation, or for the care of themselves or a loved one. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. At the national level, Southwest makes a positive impact on our communities by supporting a number of issues through our charitable relationships. Use of the Southwest websites and our Company Information Pre-COVID, Southwest was serving markets that sold a total of $63 billion in tickets a year. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! American Airlines. For decades, Southwest has been able to expand during crises because of its low costs, then come back stronger, says industry expert Robert Mann. It only has a few aircraft types, which helps the airline reduce its costs. We had to keep flying to take passengers like that doctor, plus we were carrying medical supplies, he says. Southwest Airlines employees rate the overall compensation . 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 employees earn an average salary of $41,081 in 2023, with a range from $19,000 to $87,000. [ 2] Here is an in-depth analysis of top Southwest's competitors and alternatives: 1. Working at Greatwide Dedicated Transport LLC. Southwest Airlines is strong from both a size and a cost perspective. 2023 Southwest Airlines Co. All Rights Reserved. They allow a customer to cancel a reservation up to 10 minutes before the flight's departure. That puts the company in a better position to deal with the disruptions caused by economic events that are beyond its control. Thedeparturestotaled 4,500. 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. Recognition is a cornerstone of our Culture. In the past, that didnt happen because the airport was chockablock with takeoffs and landings. The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. A value chain is a business model that describes all of the activities that a business employs to create a product or service. 1,214 reviews from Southwest Airlines employees about Pay & Benefits Find jobs. It also has a partnership with Chase Bank and offers customers a Southwest credit card. The Committee shall maintain minutes of its meetings and report on its activities to the full Board. How will Southwest respond? The atmospherics were like something out of a disaster movie. It said, We have no words to describe the damage. 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. 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. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. But what they did during the pandemic is the Big Gulp version of what they usually do. 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. Now, Southwest is offeringa total of20 nonstopflights a day to Dallas, Denver, Nashville, Phoenix, and Baltimore/Washingon. 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. . How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? 2023 Fortune Media IP Limited. 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. Terms & Conditions. Our Career Mobility Center helps Employees proactively prepare for internal career opportunities through services like individual career advising sessions, interview preparation resources, and virtual days in the field. Low-cost carriers, such as Southwest, have several critical advantages over their competitors. It also services smaller airports that don't charge as much for gate access. 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. Southwest Airlines Employees in Seattle, WA don't earn quite as much. 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. Part of that customer experience comes from the attitude and helpfulness of the employees it hires. Delta ($27.4 billion) and United ($29.8 billion) are shouldering over two-and-a-half times Southwests burden, and American owes three times as much at $32.5 billion. Powered and implemented by Interactive Data Managed Solutions. We were flying around the country with four or five passengers on the737-700 and 800s that carry 143 and 175 passengers,White tellsFortune. For more than 50 years, Southwest has connected People and championed communities. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. However, there are many more factors that go into this competitive advantage. Programs are available to help Southwest Employees live better on and off the job. They now sit at the high-fare poker table with a suddenly weaker hand. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. They can use the points to purchase future flights. 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. $17.75 per hour. 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. Southwest Airlines employees rated their Positive Business Outlook 3% higher than United Airlines employees rated theirs. In Chicago, Southwest had longbeen the dominant carrier in Midway. 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 Employees play a large role in making a positive difference in the communities we serve. Although it is valued and laughed as one of the best airlines, it has taken several risks and uncertainties. But United aimed right at this and said no more.. 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. We almost lost a zero, says Bob Jordan,EVP of corporate services. The information shown here is a reporting of information included in the company's proxy statement. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. Id never read a message from the finance staff anything like that dark. Using theSWAG platform, Employees can send a quick note of gratitude (we all call themKick Tails. The numbers that the Southwest Airlines CEO surveyed in April of last year were unspeakably catastrophic, and he had no indicators to foresee if the pandemic signaled a brief nosedive or a slow-motion crash. Southwest Airlines is approximately 83 percent unionized. Employees can save money by making tax-free contributions to flexible spending accounts for health-care and dependent childcare. Subscribe to Fortune Dailyto get essential business stories straight to your inbox each morning. The airline couldn't managed to keep its . If a customer can find a lower-priced ticket, Southwest Airlines matches the price. 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? The fired Google engineer who thought its A.I. Compare Southwest Airlines with. 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. New research shows how to set pay for remote employees. But I wanted to do everything I could to keep people in place and the blood flowing, so that wed be staffed to zoom out into the recovery and create more jobs. Kellys first move was to hammer nonlabor costs. What Is The Salary Of The Ceo Of Southwest Airlines? For those interested in conducting a detailed compensation analysis, we recommend that you review the entire proxy statement. The starting pay at Southwest Airlines is $19,000 per year, or $9.13 per hour. One of these is Southwest's cancellation policy. Just as it had to adopt its model as the. His base pay is $643,750 with $989,000 as bonuses. Read reviews from current employees that include compensation and culture insights. 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. Southwest Airlines (LUV) has become known over the past two decades as a thriving airline company operating in a time when most airlines have been struggling. Kelly thought Miami was highly attractive but wasnt rushing to invade. Read more Southwest Airlines reviews (4167), North Dallas High School P-Tech Desktop Support & Cybersecurity-Data Protection and Encryption Internships - Summer 2023, Manager - IT Applications Development (Java). Southwest is a great airline and has been for many years. Pilots arent eligible, but may elect long-term disability coverage through Southwest Airlines Pilots Association (SWAPA). Southwest Airlines Co employee benefits and perks data. FORTUNE may receive compensation for some links to products and services on this website. Total Equity aggregates grant date fair value of stock and option awards and long term incentives granted during the fiscal year. Hence, Kelly predicted that for their size, those leisure destinations would generate far more new passengers than the business as a whole. 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. LUV Sales vs. its Competitors Q3 2022. With. But Southwest faces stiff competition from Delta, United, American, Spirit, JetBlue, and WestJet. For details regarding Direct Stock Purchase & Dividend Reinvestment and other Transfer Agent information. In his Oct. 15 warning on looming sacrifice, Kelly intoned, We all realize Southwest is a cause. 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. We thought getting into OHare would be impossible, says Watterson. Cancel. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. All proxy statements are public filings made available to the general public by the SEC. Community outreach For more than 50 years, Southwest has connected People and championed communities. And thats what happened. 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. 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,. Corporate Bylaws, Articles of Incorporation & Corporate Policies, Direct Stock Purchase Plan & Dividend Reinvestment. Both tied in 3 areas: Culture & Values, Diversity & Inclusion and Career Opportunities. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. While rivals were exiting market after market, Southwest has opened no fewer than 17 new destinations, a campaign that encompasses key hubs Chicago OHare, Miami International, and Houston Intercontinental. In Miami, Southwest benefited from anotherbreakthroughcourtesy of the crisis. Delta Air Lines 2. Salaries are taken from job posts or reported by employees and are not adjusted for level or location. But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. Miss the industry alot. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. Southwest prides itself on never imposing furloughs or chopping wages. 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). Dental coverage options include preventive, basic, major, and orthodontic care. United Airlines Holdings 4. Theyd never seen that from Southwest before. If the unions didnt come through, the workforce would shrink by 6,000, or over 10%. 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. Bigger doesn't always mean better, but it usually does mean safer when it comes to investing. Unless directed by the full Board, it is not the Committees responsibility to conduct investigations. 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. 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. Kelly views a full workforce thats ready to go and growas essential to capitalizing on its move into those 17 new markets, soon to increase to 18 with the addition of Syracuse. Salaries By Southwest Airlines Competitors. The Board shall appoint one member of the Committee as chairperson (Chair) of the Committee. But at the same time, he showed the vision and moxie to pursue a superambitious flight plan for growth. 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. Employees choose from medical coverage options ranging from preferred provider organizations (PPOs) to a high deductible health plan. Southwest holds the most cash and carries the lowest debt of the major carriers. The card allows them to accumulate Southwest Airlines points when making other purchases. 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. 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. 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. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. White recalls a trip from San Diego to Baltimore with one passenger aboard, a physician going to the Washington, D.C., area to treat COVID patients. But the pandemic opened an unexpected new lane. Though most of the markets were small, Kelly figured that adding a lot of them fast would enable Southwest to expand more rapidly than under the original plan, where it would move slowly and deliberately by adding a couple of new airports a year. 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. Southwest is the only large U.S. airline that is also a low-cost carrier. In that same year, revenue from its non-loyalty passenger segment . Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career.