Employees at Alaska Airlines and Horizon Air are receiving annual bonuses today of more than 9 percent of their annual pay, or more than five weeks’ pay for most workers. The bonus is in addition to the approximately $1,000 in 2014 monthly bonuses that most employees earned for achieving on-time and customer satisfaction goals.
The combined monthly and annual bonuses amounted to nearly $116 million, the highest in Alaska’s history, and are part of the company’s incentive-based pay program.
“We’re really excited to reward our employees for all the great work they’ve done this year,” said Tammy Young, Alaska Airlines’ vice president of human resources. “This is the sixth year in a row Alaska and Horizon employees have exceeded their payout targets for performance-based pay.”
Nearly $51 million in annual bonuses — 55 percent of the total — is being paid to nearly 6,000 Alaska and Horizon employees in the Puget Sound area. Another $12 million is being paid to 2,122 employees in the Portland, Oregon, area, while $9 million is going to workers throughout the state of Alaska.
Bonuses in Alaska Air Group’s Performance Based Pay Plan are determined by meeting specific company-wide goals for safety, customer satisfaction, cost control and profit that are approved annually by the board of directors. Since the inception of the program in 2003, Alaska has paid employees $624 million in combined incentive-based pay and monthly bonuses.
As part of its philosophy to provide employees with rewarding careers and good retirement benefits, Alaska Air Group has contributed $620 million over the past 6 years to its defined benefit pension plans, which were fully funded in 2013.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 ER N469AS (msn 41702) prepares to land in Anchorage.
Alaska Airlines aircraft slide show: