Southwest Airlines CEO receives higher bonus despite holiday meltdown
2023.04.06 19:37
© Reuters. FILE PHOTO: Southwest Airlines CEO Bob Jordan, who was then Executive Vice President and Chief Commercial Officer, testifies at the U.S. Capitol in Washington, D.C., U.S., May 2, 2017. REUTERS/Kevin Lamarque
By Rajesh Kumar Singh
CHICAGO (Reuters) – Southwest Airlines (NYSE:) Co paid a higher bonus to Chief Executive Bob Jordan, a regulatory filing showed, even after the company promised to cut executive incentive pay after it canceled about 17,000 flights around the Christmas holiday, disrupting travel for 2 million customers and costing the company more than $1 billion.
In February, the company said executive bonuses would be cut as a result of the meltdown.
Jordan received $195,720 in bonus payout, up 89% from a year ago, according to a regulatory filing. His total compensation also shot up by about 75% to more than $5.3 million.
The Dallas-based carrier also paid a higher bonus to Chief Operating Officer Andrew Watterson. However, it cut the incentive pay for other top executives.
A Southwest spokesperson attributed the increased bonus payments to Jordan and Watterson’s job promotions.
Jordan served as executive vice president until Feb 1, 2022, when he became the company’s CEO. Watterson served as chief commercial officer through last September.
