DALLAS — Southwest Airlines CEO Bob Jordan pocketed a 75% pay and compensation increase in his first year on the job, a year that ended in an epic debacle as the carrier’s operations melted down during the holidays.
Jordan’s $5.33 million in total compensation for 2022 was below the $9 million in total pay, stock awards and other benefits he could have potentially earned for the year, but higher than the $3.05 million he made the year before when he was the executive vice president of corporate services, according to regulatory filings made public Thursday.
Jordan, who was elevated to CEO last February after 34 years at the company, made $676,875 in base salary, bonuses worth about $978,600 and stock awards of $3.6 million.
Those bonuses and stocks are awarded based on the company hitting certain performance metrics for both finances and operations. Jordan won’t be eligible to cash in on much of the $3.6 million in stock awards for several years while the options vest.
Jordan’s compensation for 2022 was slightly higher than Southwest’s second-highest-paid executive, chairman Gary Kelly, who made $5.07 million after serving as CEO in January and then moving to oversee the board and do some lobbying in Washington, D.C., for the company.
Kelly made $5.3 million in 2021 and $9.8 million the year before.
Southwest posted a 2022 profit of $539 million, significantly decreased by the $800 million hit the company took in lost revenue, refunds and other gestures of goodwill for the 16,700 flights the carrier canceled in December after weather and tech shortfalls essentially shut down operations around the Christmas holiday.
Among Southwest’s other top-paid executives were chief financial officer Tammy Romo, who made $2.78 million, and Andrew Watterson, who made $2.59 million in total compensation after taking over as chief operating officer in the fall for the retiring Mike Van de Ven, who made $3 million for the year.
Jordan’s 2022 total compensation was 61.5 times higher than the average Southwest employee, who made $86,599.
Jordan’s compensation also is slightly higher than that of his crosstown competitor Robert Isom, CEO of Fort Worth-based American Airlines, who earned $4.89 million in total compensation in 2022.
Chicago-based United Airlines and Atlanta-based Delta Air Lines have not yet released 2022 compensation for their top executives.
