01—Abstract
Summary
Summary of the 8-K filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Southwest Airlines Co. (the Company) filed this Form 8-K under Item 5.02(e) to report changes to executive compensation.
On August 5, 2026, the Compensation Committee of the Board approved changes to annual base salaries, effective August 15, 2026, and long-term incentive opportunity targets for certain officers, including the named executive officers. The independent directors also approved changes to Bob Jordan's base salary and long-term incentive target, effective the same date. The Committee said it reassessed its airline peer group in May 2026 after considering the Company's transformation, the expanded scope of senior roles, and external recruiting activity involving senior leaders.
It decided in August 2026 to align executive pay more closely with the average total direct compensation of American Airlines Group Inc., Delta Air Lines, Inc., and United Airlines Holdings, Inc. It used unaged 2025 peer data from the peers' 2026 proxy statements, and stated that this approach was expected to set pay modestly below the 2026 market position of those peers. The filing lists modified base salaries and long-term incentive targets for the named executive officers.
Bob Jordan, President, CEO & Vice Chairman, has a base salary of $1,225,000,a a long-term incentive target of 1200% of base salary, and a short-term incentive target of 200%. The other named executive officers have base salaries of $815,000 for Andrew Watterson (COO) and $805,000 each for Tom Doxey (CFO), Justin Jones, and Anthony Roach, with long-term incentive targets of 500% and short-term incentive targets of 150% for Watterson and 135% for the other three.
02—Key points
Key Highlights
- Effective August 15, 2026, Bob Jordan's base salary is $1,225,000, with a long-term incentive target of 1200% of base salary and a short-term incentive target of 200%.
- Andrew Watterson (COO) has a modified base salary of $815,000, a 500% long-term incentive target and a 150% short-term incentive target.
- Tom Doxey (CFO), Justin Jones and Anthony Roach each have a modified base salary of $805,000, a 500% long-term incentive target and a 135% short-term incentive target.
- The Committee changed its peer benchmark to the average of American Airlines, Delta and United, replacing the prior blended approach that included Alaska Air and JetBlue.
- The Committee used unaged 2025 peer compensation data from 2026 proxy statements and noted pay levels would be modestly below the peers' 2026 market position.
- The Committee cited the Company's transformation success and external recruiting of senior leaders as reasons for the compensation changes.
03—Questions
Frequently Asked Questions
When do the new executive salaries and incentive targets take effect?
The modified annual base salaries take effect August 15, 2026. The filing also describes the long-term incentive opportunity target changes as approved on August 5, 2026, for certain officers including the named executive officers, and for Bob Jordan by the independent directors.
What is the new base salary for the CEO, Bob Jordan?
Bob Jordan's modified annual base salary is $1,225,000, effective August 15, 2026. His long-term incentive opportunity target is 1200% of base salary, and his short-term incentive opportunity target is 200% of base salary.
Which peer group did the Compensation Committee use to set executive pay?
The Committee aligned executive compensation more closely with the average total direct compensation of American Airlines Group Inc., Delta Air Lines, Inc., and United Airlines Holdings, Inc. The filing says this replaces the broader peer set considered in the late 2025 and early 2026 review, which also included Alaska Air Group, Inc. and JetBlue Airways Corporation.
Why did the Committee make these changes?
The filing cites the success of the Company's transformation, the greater scope and complexity of senior executive roles, the Company's size relative to peers, the increasing comparability of its product and commercial offerings with the largest U.S. airlines, and the risk of losing senior executive talent, as shown by external recruiting of senior leaders.
Are the new pay levels above or below the peers' current market position?
The filing states that because the Committee used unaged 2025 peer data without projecting it forward to 2026, the resulting compensation levels were expected to be modestly below the 2026 market position of those peers.
04—Continue