Southwest CEO gets $8M bonus, stocks, despite winter woes

DALLAS — Southwest Airlines CEO Bob Jordan earned over $9 million last year in total compensation, after the airline’s operational meltdown that plagued passengers over the holidays.

Jordan’s $9.3 million in total compensation for 2023 was $3.97 million more than what he made the year before, according to regulatory filings made public Friday. Jordan got his raise in the year after a winter storm in December 2022 that affected the carrier’s hubs in Denver and Chicago, forcing Southwest to cancel flights, with disruptions cascading across its network as the company’s technology was unable to keep up with the need to reassign pilots and flight attendants.

All the while, Southwest reported in December the airline was paying $35 million as part of a $140 million settlement with the U.S. Department of Transportation and beginning to offer vouchers to some delayed customers as penance for last year’s holiday meltdown that has already cost the company more than $1.1 billion. Southwest also said in its year-end earnings that the air carrier isn’t satisfied yet with its profitability.

Jordan, who was named chief executive officer in 2022 after 34 years at the company, made $700,000 in base salary, bonuses worth about $4 million and stock awards of $4.1 million. Southwest’s executive compensation was disclosed Friday in regulatory filings.

The bonuses and stocks are awarded based on the company hitting certain performance metrics for both finances and operations. Jordan won’t be eligible to receive his stock awards for several years while the options vest.

Jordan brought in the most out of any Southwest executive, but trailing behind him was former CEO and current executive chairman of the board Gary Kelly, who made $9 million last year.

Other top-paid executives were Tammy Romo, executive vice president and chief financial officer at Southwest, who made $5.6 million last year, a bump from the previous year when she made $2.7 million. Southwest operating chief Andrew Watterson also received a raise, making over $5 million last year, from $2.5 million in 2022. Watterson testified in front of Congress following the winter meltdown.

Total compensation for a median employee was $89,699 at Southwest in 2023.