Alaska Shareholders To Weigh In On Pay
By Andrew Compart 
Alaska Air Group said March 3 that it will give its stockholders a non-binding vote on compensation for the airline’s five highest-paid executives.
The decision follows a vote by shareholders at the 2008 annual meeting in which they approved a resolution asking the board to adopt such a policy.
Total compensation for the company’s five highest-paid executives ranged from $831,000 to $1.5 million in 2007 — the last year for which compensation has been publicly disclosed. Total compensation for 2008 will be revealed when the airline files it proxy statement for its annual meeting.
That proxy statement, which the airline said it plans to file with the SEC by April 1, also will include the advisory resolution. The board said the “say on pay” resolution would “inform the board’s future decisions on executive compensation.”
Although the board, in adopting the policy, was responding to the 2008 vote, it also cast its decision as a voluntary one in the press release it issued March 3.
“The move to become one of the first public companies in the nation to voluntarily solicit stockholder input on executive pay reflects Alaska’s ongoing commitment to equitable pay practices at all levels of the organization,” said Phyllis Campbell, the board’s compensation committee chairwoman.
“The board has long been concerned about trends in executive compensation that have led to excessive pay packages and ultimate harm to stockholders, customers and employees,” she added. “We welcome stockholder input on a long-established pay structure that we believe effectively aligns executives’ interests with those of our key stakeholders by offering modest base pay, with the opportunity to reach the market midpoint for performance that benefits stockholders, customers and employees.”
In last year’s proxy filing, the compensation committee described “at risk” compensation for senior executives as a “key element in achieving a pay-for performance culture.” With salaries ranging from $237,000 to $360,000, compared to total compensation ranging from $831,000 to $1.5 million, the committee said the amount of compensation “at risk” and “tied to stockholder value creation” was 80% for Chairman, President and CEO William Ayer and 67% for the other four officers.
Photo: Alaska Airlines
