Southwest Airlines Co recently revealed in a regulatory filing that its Chief Executive, Bob Jordan, received an increased bonus despite the company’s holiday meltdown. This comes after Southwest Airlines promised to cut executive incentive pay following the cancellation of nearly 17,000 flights around Christmas time and the resulting disruption for 2 million customers. The cost of this incident was estimated at over $1 billion.
The decision to award Jordan with a higher bonus has been met with some criticism from both customers and shareholders alike who feel that it is inappropriate given the circumstances surrounding his role in the airline’s recent troubles. However, supporters have argued that he should be rewarded for his efforts during such difficult times as well as his overall performance throughout 2019, which saw record profits and customer satisfaction levels reach all-time highs.
Ultimately, it remains unclear if this move will help or hinder Southwest Airlines’ reputation moving forward but what is certain is that they must now focus on rebuilding trust among their passengers while ensuring similar issues do not arise again in future years if they are to remain competitive within their industry sector.
Read more at Reuters