Alaska Air Group, Inc. 2002 Management Incentive Plan

Summary

Alaska Air Group, Inc. established a Management Incentive Plan for 2002 that ties executive cash compensation to the company's annual profitability and operational goals. Executives are eligible for awards only if the company meets specific profit and operational targets set by the Compensation Committee, such as unit revenues, costs, pretax profit, safety, customer satisfaction, and on-time performance. The CEO could earn up to 130% of base pay, while other executives could earn up to 90%, with adjustments possible for individual performance.

EX-10.1 4 v88181exv10w1.txt EXHIBIT 10.1 EXHIBIT 10.1 ALASKA AIR GROUP, INC. MANAGEMENT INCENTIVE PLAN Alaska Air Group's Management Incentive Plan ("MIP") in effect for 2002 places at risk a significant portion of each executive's potential cash compensation, linking it to annual profitability and operational goals. For awards to be paid, the Company must achieve profit and/or operating goals established annually by the Compensation Committee. In 2002, the goals were based on measures relating to unit revenues, unit costs, pretax profit, safety, customer satisfaction and on-time performance. Awards increase proportionately based on the degree to which threshold, target and maximum goals are met. In 2002 the CEO could earn up to 130% of base pay, depending on the extent to which the goals are reached. The other named executives could earn up to 90% of base salary, depending on the extent to which the goals are met and the executive's position. Award levels can be adjusted by the Committee for individual performance.