In yet another story of how the rich become richer, while the poor become poorer, Southwest airlines CEO Gary Kelly, according to an Associated Press report, "received about $4 million in compensation for 2012, a 15% increase from 2011 that came mostly on bigger stock awards."
Adding to its report, the AP stated that the airline said in a regulatory filing on Friday that Kelly, "who is also the company's chairman, was paid a salary of $675,000 and a $961,000 bonus last year, both 4% increases from 2011."
Though, to be fair to Kelly, most of his money was earned as a result of stocks and received $129,802 in other compensation, which includes "contributions to retirement plans and security around his home."
The Dallas Morning News added a bit more perspective, noting Alaska Air CEO Brad Tilden's compensation package for 2012 was valued at about $5.7 million. That, the Morning News reports, included "$419,614 in base salary, no bonus, $3,160,012 in stock awards, $442,002 in option awards, $684,528 in non-equity compensation, $883,208 in change in pension value and non-qualified deferred compensation earnings and $102,008 in all other compensation."
However, for those bitter at Kelly's pay increase, remember, he arrived at Southwest in 1986 and held a succession of finance jobs including chief financial officer. He was named CEO in 2004 and added the chairman's title in 2008.
During his time, the company expanded, acquired a subsidiary in in AirTran and grew in national recognition and profitability.
The Associated Press reported that in 2012 "Southwest's net income more than doubled to $421 million from $178 million in 2011. The results were helped by paper gains on fuel-hedging contracts. Revenue rose 9% to $16.09 billion on higher fares and more passengers...this caused the stock of the Dallas-based airline to climb nearly 20% during 2012 and were up another 25% since the start of 2013."
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