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☐ | Preliminary Proxy Statement |
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☒ | Definitive Proxy Statement |
☐ | Definitive Additional Materials |
☐ | Soliciting Material under §240.14a-12 |
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☐ | Fee paid previously with preliminary materials. |
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Frontier Group Holdings, Inc. 4545 Airport Way Denver, CO 80239 |
iiFrontier Airlines 2024 Proxy Statement |
Proposal | Page Number | Voting Standard | Board Vote Recommendation | |||||||||||||||
Proposal No. 1: To elect | Plurality of votes cast | FOR each Director nominee | ||||||||||||||||
Proposal No. 2: To ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, | Majority of votes present and entitled to vote | FOR | ||||||||||||||||
Proposal No. 3: To approve, on an advisory (non-binding) basis, the compensation of our named executive officers | Majority of votes present and entitled to vote |
Name | Since | Audit Committee | Compensation Committee | Finance Committee | Nominating and Corporate Governance Committee | Safety and Security Committee | |||||||||||||||||
Brian H. Franke | Chair | ||||||||||||||||||||||
Robert J. Genise |
2014 |
Member | Member | ||||||||||||||||||||||||||||||||||||||
Proposal | Voting Standard | Effect of Votes Withheld/Abstentions and Broker Non-Votes | ||||||||||
Proposal No. 1: To elect | Plurality of votes cast | Votes withheld and broker non-votes will have no effect. | ||||||||||
Proposal No. 2: To ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2024 | Majority of votes present and entitled to vote | Abstentions will be counted as a vote against this proposal. We do not expect any broker non-votes on this proposal. | ||||||||||
Proposal No. 3: To approve, on an advisory (non-binding) basis, the compensation of our named executive officers | Majority of votes present and entitled to vote | Abstentions will be counted as a vote against this proposal. Broker non-votes will have no effect. | ||||||||||
Name | Committee | Committee | Committee | Nominating and Corporate Governance Committee | Safety and Security Committee | |||||||||||||||||||||||||||||||||||||||
William | Chair | |||||||||||||||||||||||||||||||||||||||||||
Barry L. Biffle | ||||||||||||||||||||||||||||||||||||||||||||
Andrew S. Broderick | Member | |||||||||||||||||||||||||||||||||||||||||||
Josh T. Connor | Member | |||||||||||||||||||||||||||||||||||||||||||
Brian H. Franke | Chair | |||||||||||||||||||||||||||||||||||||||||||
Robert J. Genise | Chair | |||||||||||||||||||||||||||||||||||||||||||
Bernard L. Han | Member | |||||||||||||||||||||||||||||||||||||||||||
Ofelia Kumpf | Member | Member | ||||||||||||||||||||||||||||||||||||||||||
Michael R. MacDonald | Member | |||||||||||||||||||||||||||||||||||||||||||
Patricia Salas Pineda | Member | Member | ||||||||||||||||||||||||||||||||||||||||||
Alejandro D. Wolff | Member | Member |
Board Size: | | | | | | | | | ||||
Total Number of Directors | | | 11 | |||||||||
| | Female | | | Male | | | Non-Binary | | | Did Not Disclose Gender | |
Part I: Gender Identity | | | | | | | | | ||||
Directors | | | 2 | | | 9 | | | — | | | — |
Part II: Demographic Background | | | | | | | | | ||||
African American or Black | | | — | | | — | | | — | | | — |
Alaskan Native or Native American | | | — | | | — | | | — | | | — |
Asian | | | — | | | 1 | | | — | | | — |
Hispanic or Latinx | | | 2 | | | 1 | | | — | | | — |
Native Hawaiian or Pacific Islander | | | — | | | — | | | — | | | — |
White | | | — | | | 8 | | | — | | | — |
Two or More Races or Ethnicities | | | — | | | 1 | | | — | | | — |
LGBTQ+ | | | — | |||||||||
Did Not Disclose Demographic Background | | | — |
Board Size: | ||||||||||||||
Total Number of Directors | 11 | |||||||||||||
Female | Male | Non-Binary | Did Not Disclose Gender | |||||||||||
Part I: Gender Identity | ||||||||||||||
Directors | 2 | 9 | — | — | ||||||||||
Part II: Demographic Background | ||||||||||||||
African American or Black | — | — | — | — | ||||||||||
Alaskan Native or Native American | — | — | — | — | ||||||||||
Asian | — | 1 | — | — | ||||||||||
Hispanic or Latinx | 2 | 1 | — | — | ||||||||||
Native Hawaiian or Pacific Islander | — | — | — | — | ||||||||||
White | — | 8 | — | — | ||||||||||
Two or More Races or Ethnicities | — | 1 | — | — | ||||||||||
LGBTQ+ | — | — | — | — | ||||||||||
Did Not Disclose Demographic Background | — | — | — | — |
Name | Position(s) | |||||||||||
Barry L. | ||||||||||||
James G. Dempsey | ||||||||||||
Howard M. Diamond | ||||||||||||
Mark C. Mitchell | ||||||||||||
Senior Vice President, Operations | ||||||||||||
Senior Vice President and Chief Information Officer | ||||||||||||
Senior Vice President, Customers | ||||||||||||
Senior Vice President, Human Resources | ||||||||||||
Bobby Schroeter | 46 | Senior Vice President and Chief Commercial Officer |
Male | | | Female | | | Minority | Male | Female | Minority | |||||
54% | | | 46% | | | 32% | ||||||||
55% | 55% | 45% | 40% |
| | Year Ended December 31, | ||||
| | 2021 | | | 2020 | |
| | (In thousands) | ||||
Audit Fees(1) | | | $1,102 | | | $1,672 |
Audit-Related Fees(2) | | | 62 | | | 10 |
Tax Fees(3) | | | 93 | | | 133 |
All Other Fees(4) | | | 7 | | | 7 |
Total Fees | | | $1,264 | | | $1,822 |
Year Ended December 31, | ||||||||
2023 | 2022 | |||||||
(In thousands) | ||||||||
Audit Fees(1) | $1,710 | $1,955 | ||||||
Audit-Related Fees(2) | 25 | 40 | ||||||
Tax Fees(3) | 50 | 293 | ||||||
All Other Fees(4) | 7 | 7 | ||||||
Total Fees | $1,792 | $2,295 |
Name | | | Fee Earned or Paid in Cash ($) | | | Stock Awards(1) ($) | | | Total(2) ($) |
Josh T. Connor | | | 80,000 | | | 108,153 | | | 188,153 |
Brian H. Frankie | | | 90,000 | | | 108,153 | | | 198,153 |
William A. Franke | | | 75,000 | | | 108,153 | | | 183,153 |
Andrew S. Broderick | | | 60,000 | | | 108,153 | | | 168,153 |
Robert J. Genise | | | 82,849 | | | 108,153 | | | 191,002 |
Bernard L. Han | | | 103,750 | | | 108,153 | | | 211,903 |
Ofelia Kumpf | | | 36,739(3) | | | 103,227 | | | 139,966 |
Patricia Salas Pineda | | | 80,000 | | | 108,153 | | | 188,153 |
Michael R. MacDonald | | | 80,000 | | | 108,153 | | | 188,153 |
Alejandro D. Wolff | | | 80,000 | | | 108,153 | | | 188,153 |
(1)Amounts shown represent the grant date fair value of RSUs granted during fiscal year 2023 as calculated in accordance with ASC Topic 718. See Note 10 to the financial statements included in our 2023 Annual Report for the assumptions used in calculating this amount. On May 25, 2023, each non-employee director received an annual grant of 17,722 RSUs that, in each case, will vest in full on May 23, 2024, subject to continued service. No other equity awards were made to our non-employee directors during 2023. As of December 31, 2023, each non-employee director held 17,722 RSUs and no other equity awards. (2)Consistent with SEC rules, we have not disclosed perquisites and other personal benefits where the aggregate incremental cost of such compensation was less than $10,000. Frontier Airlines 2024 Proxy Statement 25 |
Barry L. Biffle, Chief Executive Officer | ||
James G. Dempsey, President(1) | ||
Howard M. Diamond, Executive Vice President, Legal and Corporate Affairs and Corporate Secretary(2) | ||
Mark C. Mitchell, Senior Vice President and Chief Financial Officer(3) | ||
Trevor J. Stedke, Senior Vice President, Operations | ||
Rajat Khanna, Senior Vice President and Chief Information Officer |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Metric | Additional Notes | |||||||||||
The industry includes the following carriers: American Airlines, Delta, United, Southwest, Alaska, JetBlue, Hawaiian, Spirit, Allegiant Air, and Frontier. | ||||||||||||
23.33% | ||||||||||||
The following four (1) Day (2) Controllable Turn Performance (3) (4) DOT mishandled bag rate (Industry Rank) |
2023 Goals | 2023 Actual Results | Percent Achieved (Achievement Level x Weighting) | ||||||||||||||||||
Performance Metric | Threshold | Target | Stretch | Maximum | ||||||||||||||||
2023 Year-end Net Cash(1) | $300M | $386M | $418M | $450M | $139M | — | ||||||||||||||
Full-Year Total Adjusted CASM (Industry Rank) | <8.94(2) | 3 | 2 | 1 | 1 | 47% | ||||||||||||||
Full-Year Adjusted Net Margin (Industry Rank) | 6 | 5 or 4 | 3 or 2 | 1 | 7 | — | ||||||||||||||
Operational Objectives | 1 of 4 | 2 of 4 | 3 of 4 | 4 of 4 | 2 of 4 | 30% |
2021 Goals | | | 2021 Actual Result | | | Percent Achieved (Achievement Level x Weighting) | ||||||||||||
Performance Metric | | | Threshold | | | Target | | | Stretch | | | Maximum | | |||||
2021 Year-end Cash | | | $150M | | | $212M | | | $243M | | | $274M | | | $238M | | | 33% |
Full Year Total CASM (Industry Rank) | | | <8.93(1) | | | 3 | | | 2 | | | 1 | | | 2nd place | | | 35% |
Full Year Net Margin (Industry Rank) | | | 5 or better | | | 3 | | | 2 | | | 1 | | | 7 | | | — |
Operational Objectives | | | 1 of 4 | | | 2 of 4 | | | 3 of 4 | | | 4 of 4 | | | 2 of 4 | | | 30% |
Total | | | | | | | | | | | | |
Operational Objective | Target Objective Achieved? | ||||||||||||||||
Yes | |||||||||||||||||
Head Start On-Time Percentage | 75% or better | 74% | No | ||||||||||||||
DOT Mishandled Bag Rate (Industry Rank) (1) | No |
Name | Bonus Target ($) | Corporate Performance Bonus (Equal to 75% x bonus target x 77%) ($) | Individual Performance Bonus (equal to 25% x bonus target x 77% x individual achievement level) ($) | Annual Performance Bonus Paid (corporate + individual) ($) | ||||||||||
Barry L. Biffle | 846,410 | 488,802 | 162,934 | 651,736 | ||||||||||
James G. Dempsey | 540,561 | 312,174 | 109,261 | 421,435 | ||||||||||
Howard M. Diamond | 306,504 | 177,006 | 64,902 | 241,908 | ||||||||||
Mark C. Mitchell | 218,857 | 126,390 | 46,343 | 172,733 | ||||||||||
Trevor J. Stedke | 246,486 | 142,346 | 47,448 | 189,794 | ||||||||||
Rajat Khanna (1) | 57,325 | 33,105 | 12,139 | 45,244 |
Neo | | | Bonus Target ($) | | | Corporate Performance Bonus (Equal to 75% x bonus target X 98%) | | | Individual Performance Bonus (equal to 25% x bonus target x 98% x individual achievement level) | | | Annual Performance Bonus Paid (corporate + individual) |
Barry L. Biffle | | | 781,250 | | | 574,219 | | | 210,547 | | | 784,766 |
James G. Dempsey | | | 472,500 | | | 347,288 | | | 127,339 | | | 474,627 |
Howard M. Diamond | | | 280,000 | | | 205,800 | | | 75,460 | | | 255,720(1) |
Craig R. Maccubbin(2) | | | 198,000 | | | 116,025 | | | 38,675 | | | 154,700 |
Jake F. Filene | | | 234,000 | | | 171,990 | | | 57,330 | | | 229,320 |
Name | Merger Retention Bonus ($) | ||||
Barry L. Biffle | 1,102,148 | ||||
James G. Dempsey | 783,750 | ||||
Howard M. Diamond | 535,500 | ||||
Mark C. Mitchell | 270,000 | ||||
Trevor J. Stedke | 461,093 |
Name | IPO Bonus ($) | ||||
Barry L. Biffle | 625,000 | ||||
James G. Dempsey | 525,000 | ||||
Howard M. Diamond | 400,000 | ||||
Mark C. Mitchell | 325,000 | ||||
Trevor J. Stedke | 180,000 |
Name and Principal Position | | | Year | | | Salary ($) | | | Stock Awards ($)(1) | | | Option Awards ($) | | | Non-Equity Incentive Plan Compensation ($)(2) | | | All Other Compensation ($)(3) | | | Total ($) |
Barry L. Biffle President and Chief Executive Officer | |||||||||||||||||||||
| | 2021 | | | 625,000 | | | 2,179,744 | | | — | | | 784,766 | | | 8,700 | | | 3,598,210 | |
| | 2020 | | | 461,021 | | | 3,112,620 | | | — | | | 721,456 | | | 5,700 | | | 4,300,797 | |
| | 2019 | | | 568,608 | | | — | | | — | | | 611,867 | | | 3,322,686 | | | 4,503,161 | |
James G. Dempsey Executive Vice President and Chief Financial Officer | |||||||||||||||||||||
| | 2021 | | | 525,000 | | | 749,550 | | | — | | | 474,627 | | | 7,875 | | | 1,757,052 | |
| | 2020 | | | 523,085 | | | 1,000,020 | | | — | | | 441,197 | | | 4,275 | | | 1,968,577 | |
| | 2019 | | | 431,233 | | | — | | | 1,144,959 | | | 417,637 | | | 962,222 | | | 2,956,051 | |
Howard M. Diamond Senior Vice President, General Counsel and Secretary | |||||||||||||||||||||
| | 2021 | | | 399,093(4) | | | 486,550 | | | — | | | 255,720(4) | | | 8,700 | | | 1,150,063 | |
| | 2020 | | | 395,854 | | | 1,000,020 | | | — | | | 256,954 | | | 7,346 | | | 1,660,174 | |
| | 2019 | | | 367,481 | | | — | | | — | | | 276,816 | | | 506,266 | | | 1,150,563 | |
Craig R. Maccubbin Senior Vice President, Chief Information Officer | |||||||||||||||||||||
| | 2021 | | | 287,014(5) | | | 1,099,984 | | | — | | | 154,700(5) | | | 53,957 | | | 1,595,655 | |
Jake F. Filene Senior Vice President, Customers | |||||||||||||||||||||
| | 2021 | | | 360,000 | | | 549,670 | | | — | | | 229,320 | | | 8,700 | | | 1,147,690 | |
| | 2020 | | | 359,162 | | | 714,840 | | | — | | | 215,062 | | | 7,380 | | | 1,296,444 |
Name and Principal Position | Year | Salary(1) ($) | Bonus(2) ($) | Stock Awards(3) ($) | Non-Equity Incentive Plan Compensation(4) ($) | All Other Compensation(5) ($) | Total ($) | |||||||||||||||||||
Barry L. Biffle Chief Executive Officer | ||||||||||||||||||||||||||
2023 | 677,128 | 1,955,565 | 5,288,374 | 651,736 | 9,900 | 8,582,703 | ||||||||||||||||||||
2022 | 650,505 | 3,000 | 2,299,996 | 784,765 | 9,150 | 3,747,416 | ||||||||||||||||||||
2021 | 625,000 | — | 2,179,744 | 784,766 | 8,700 | 3,598,210 | ||||||||||||||||||||
James G. Dempsey President | ||||||||||||||||||||||||||
2023 | 586,164 | 525,000 | 3,690,646 | 421,435 | 8,773 | 5,232,018 | ||||||||||||||||||||
2022 | 547,671 | 783,750 | 800,005 | 623,216 | 8,210 | 2,762,852 | ||||||||||||||||||||
2021 | 525,000 | — | 749,550 | 474,627 | 7,875 | 1,757,052 | ||||||||||||||||||||
Howard M. Diamond Executive Vice President, Legal and Corporate Affairs and Corporate Secretary | ||||||||||||||||||||||||||
2023 | 437,863 | 1,202,940 | 1,500,419 | 241,908 | 9,900 | 3,393,030 | ||||||||||||||||||||
2021 | 399,093 | — | 486,550 | 255,720 | 8,700 | 1,150,063 | ||||||||||||||||||||
Mark C. Mitchell Senior Vice President, Chief Financial Officer | ||||||||||||||||||||||||||
2023 | 398,986 | 741,989 | 1,348,958 | 172,733 | 9,900 | 2,672,566 | ||||||||||||||||||||
Trevor J. Stedke Senior Vice President, Operations | ||||||||||||||||||||||||||
2023 | 379,209 | 258,924 | 1,200,005 | 189,794 | 9,900 | 2,037,832 | ||||||||||||||||||||
2022 | 371,426 | 428,100 | 550,000 | 227,003 | 9,150 | 1,585,679 | ||||||||||||||||||||
Rajat Khanna Senior Vice President, Chief Information Officer | ||||||||||||||||||||||||||
2023 | 88,192(6) | — | 1,699,999 | 45,244(6) | 169,958 | 2,003,393 |
Name | Estimated Future Payouts Under Non-Equity Incentive Plan Award(1) | All Other Stock Awards: Number of Shares of Stock or Units (#) | Grant Date Fair Value of Stock and Option Awards(2) ($) | |||||||||||||||||
Grant Date | Threshold ($) | Target ($) | Maximum ($) | |||||||||||||||||
Barry L. Biffle | N/A | 423,205 | 846,410 | 1,692,820 | ||||||||||||||||
February 8, 2023 | 168,840(3) | 2,296,224 | ||||||||||||||||||
April 2, 2023 | 29,690(3) | 292,150 | ||||||||||||||||||
October 25, 2023 | 703,125(4) | 2,700,000 | ||||||||||||||||||
James G. Dempsey | N/A | 270,281 | 540,561 | 1,081,122 | ||||||||||||||||
February 8, 2023 | 72,450(3) | 985,320 | ||||||||||||||||||
April 2, 2023 | 15,785(3) | 155,324 | ||||||||||||||||||
October 25, 2023 | 664,063(5) | 2,550,002 | ||||||||||||||||||
Howard M. Diamond | N/A | 153,252 | 306,504 | 613,008 | ||||||||||||||||
February 8, 2023 | 33,984(3) | 462,182 | ||||||||||||||||||
April 2, 2023 | 31,833(6) | 313,237 | ||||||||||||||||||
October 25, 2023 | 188,802(4) | 725,000 | ||||||||||||||||||
Mark C. Mitchell | N/A | 109,429 | 218,857 | 437,714 | ||||||||||||||||
February 8, 2023 | 10,970(3) | 149,192 | ||||||||||||||||||
April 2, 2023 | 10,139(6) | 99,767 | ||||||||||||||||||
October 25, 2023 | 286,458(5) | 1,099,999 | ||||||||||||||||||
Trevor J. Stedke | N/A | 123,243 | 246,486 | 492,972 | ||||||||||||||||
February 8, 2023 | 36,765(3) | 500,004 | ||||||||||||||||||
October 25, 2023 | 182,292(4) | 700,001 | ||||||||||||||||||
Rajat Khanna | N/A | 28,663 | 57,325 | 114,650 | ||||||||||||||||
October 25, 2023 | 442,708(7) | 1,699,999 |
| | Estimated Future Payouts Under Non-Equity Incentive Plan Award(1) | | | All Other Stock Awards: Number of Shares of Stock or Units (#)(2) | | | Grant Date Fair Value of Stock and Option Awards ($)(3) | ||||||||||
Name | | | Grant Date | | | Threshold ($) | | | Target($) | | | Maximum ($) | | |||||
Barry L. Biffle | | | N/A | | | 390,625 | | | 781,250 | | | 1,562,500 | | | | | | |
| | February 23, 2021 | | | | | | | | | 157,472 | | | 2,179,744 | ||||
James G. Dempsey | | | N/A | | | 236,250 | | | 472,500 | | | 945,000 | | | | | | |
| | February 23, 2021 | | | | | | | | | 54,150 | | | 749,550 | ||||
Howard M. Diamond | | | N/A | | | 140,000 | | | 280,000 | | | 560,000 | | | | | | |
| | February 23, 2021 | | | | | | | | | 35,150 | | | 486,550 | ||||
Craig R. Maccubbin(4) | | | N/A | | | 99,000 | | | 198,000 | | | 396,000 | | | | | | |
| | May 11, 2021 | | | | | | | | | 53,268 | | | 1,099,984 | ||||
Jake F. Filene | | | N/A | | | 117,000 | | | 234,000 | | | 468,000 | | | | | | |
| | February 23, 2021 | | | | | | | | | 39,710 | | | 549,670 |
| | | | Option Awards | | | Stock Awards | ||||||||||||||
Name | | | Vesting Commencement Date | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number Of Securities Underlying Unexercised Options (#) Unexercisable | | | Option Exercise Price | | | Option Expiration Date | | | Number of Shares or Units That Have Not Vested (#) | | | Market Value of Shares or Units of Stock That Have Not Vested ($)(1) |
Barry L. Biffle | | | 4/27/2014 | | | 2,000,000 | | | — | | | 0.26 | | | 4/27/2024 | | | — | | | — |
| 3/15/2016 | | | 1,516,200 | | | — | | | 3.92 | | | 3/15/2026 | | | — | | | — | ||
| 2/19/2020 (2) | | | — | | | — | | | — | | | — | | | 187,758 | | | 2,547,876 | ||
| 2/23/2021 (2) | | | — | | | — | | | — | | | — | | | 157,472 | | | 2,136,895 | ||
James G. Dempsey | | | 5/12/2014 | | | 1,164,419 | | | — | | | 0.26 | | | 5/12/2024 | | | — | | | — |
| 12/09/2019 (3) | | | 177,333 | | | 88,667 | | | 10.55 | | | 12/09/2029 | | | — | | | — | ||
| 2/19/2020 (2) | | | — | | | — | | | — | | | — | | | 60,344 | | | 818,868 | ||
| 2/23/2021 (2) | | | — | | | — | | | — | | | — | | | 54,150 | | | 734,816 | ||
Howard M. Diamond | | | 7/28/2014 | | | 608,394 | | | — | | | 0.26 | | | 7/28/2024 | | | — | | | — |
| 2/19/2020 (2) | | | — | | | — | | | — | | | — | | | 60,344 | | | 818,868 | ||
| 2/23/2021 (2) | | | — | | | — | | | — | | | — | | | 35,150 | | | 476,986 | ||
Craig R. Maccubbin | | | 3/15/2021 (4) | | | — | | | — | | | — | | | — | | | 53,268 | | | 722,847 |
Jake F. Filene | | | 2/19/2020 (2) | | | — | | | — | | | — | | | — | | | 43,130 | | | 585,274 |
| 2/23/2021 (2) | | | — | | | — | | | — | | | — | | | 39,710 | | | 538,865 |
Name | Vesting Commencement Date | Option Awards | Stock Awards | ||||||||||||||||||||
Number Of Securities Underlying Unexercised Options (#) Exercisable | Number Of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested(1) ($) | ||||||||||||||||||
Barry L. Biffle | 4/27/2014 | 40,000 | — | 0.26 | 4/27/2024 | — | — | ||||||||||||||||
3/15/2016 | 1,516,200 | — | 3.92 | 3/15/2026 | — | — | |||||||||||||||||
2/23/2021 (2) | — | — | — | — | 52,491 | 286,601 | |||||||||||||||||
2/3/2022 (2) | — | — | — | — | 121,984 | 666,033 | |||||||||||||||||
2/8/2023 (2) | — | — | — | — | 198,530 | 1,083,974 | |||||||||||||||||
10/25/2023 (2) | — | — | — | — | 703,125 | 3,839,063 | |||||||||||||||||
James G. Dempsey | 12/9/2019 | 266,000 | — | 10.55 | 12/9/2029 | — | — | ||||||||||||||||
2/23/2021 (2) | — | — | — | — | 18,050 | 98,553 | |||||||||||||||||
2/3/2022 (2) | — | — | — | — | 42,430 | 231,668 | |||||||||||||||||
2/8/2023 (2) | — | — | — | — | 88,235 | 481,763 | |||||||||||||||||
10/16/2023 (2) | — | — | — | — | 195,313 | 1,066,409 | |||||||||||||||||
10/25/2023 (2) | — | — | — | — | 468,750 | 2,559,375 | |||||||||||||||||
Howard M. Diamond | 2/23/2021 (2) | — | — | — | — | 11,717 | 63,975 | ||||||||||||||||
2/3/2022 (2) | — | — | — | — | 24,696 | 134,840 | |||||||||||||||||
2/8/2023 (2) | — | — | — | — | 33,984 | 185,553 | |||||||||||||||||
2/8/2023 (3) | — | — | — | — | 31,833 | 173,808 | |||||||||||||||||
10/25/2023 (2) | — | — | — | — | 188,802 | 1,030,859 | |||||||||||||||||
Mark C. Mitchell | 9/18/2015 | 158,803 | — | 1.36 | 9/18/2025 | — | — | ||||||||||||||||
2/23/2021 (2) | — | — | — | — | 4,560 | 24,898 | |||||||||||||||||
2/3/2022 (2) | — | — | — | — | 8,137 | 44,428 | |||||||||||||||||
2/8/2023 (2) | — | — | — | — | 10,970 | 59,896 | |||||||||||||||||
2/8/2023 (3) | — | — | — | — | 10,139 | 55,359 | |||||||||||||||||
10/16/2023 (2) | — | — | — | — | 130,208 | 710,936 | |||||||||||||||||
10/25/2023 (2) | — | — | — | — | 156,250 | 853,125 | |||||||||||||||||
Trevor J. Stedke | 2/23/2021 (2) | — | — | — | — | 13,237 | 72,274 | ||||||||||||||||
2/3/2022 (2) | — | — | — | — | 29,170 | 159,268 | |||||||||||||||||
2/8/2023 (2) | — | — | — | — | 36,765 | 200,737 | |||||||||||||||||
10/25/2023 (2) | — | — | — | — | 182,292 | 995,314 | |||||||||||||||||
Rajat Khanna | 10/5/2023 (4) | — | — | — | — | 286,458 | 1,564,061 | ||||||||||||||||
10/25/2023 (2) | — | — | — | — | 156,250 | 853,125 |
| | Option awards | | | Stock Awards | |||||||
Name | | | Number of shares acquired on exercise (#) | | | Value realized on exercise(1) ($) | | | Number of shares acquired on vesting (#) | | | Value realized on vesting(2) ($) |
Barry L. Biffle | | | 852,926 | | | 13,315,328 | | | 93,860 | | | 1,299,022 |
James G. Dempsey | | | 97,447 | | | 1,825,849 | | | 30,134 | | | 417,055 |
Howard M. Diamond | | | 49,006 | | | 918,218 | | | 30,134 | | | 417,055 |
Craig R. Maccubbin | | | — | | | — | | | — | | | — |
Jake F. Filene | | | — | | | — | | | 57,076 | | | 886,573 |
(1)Represents the difference between the fair market value of our common stock underlying the options at exercise and the exercise price of the option. (2)Represents the amounts realized based on the fair market value of our common stock on the vesting date. |
Name | Scenario | Salary Severance ($) | Severance ($) | Accelerated Vesting of Stock and Option Awards ($) | Premiums ($) | ($) | Total ($) | ||||||||||||||||||||||||||||||
Barry L. Biffle | Termination without Cause or | 680,000(1) | 1,498,146(2) | 26,494(3) | |||||||||||||||||||||||||||||||||
Termination without Cause or a Constructive Termination in Connection with a Change in Control | 2,344,556(6) | 52,988(8) | |||||||||||||||||||||||||||||||||||
James G. Dempsey | Termination without Cause | 540,561(2) | 32,220(3) | 1,206,031 | |||||||||||||||||||||||||||||||||
1,250,000(5) | 1,502,557(6) | 4,437,768(7) | 64,440(8) | 16,500(9) | 7,271,265 | ||||||||||||||||||||||||||||||||
Howard M. Diamond | Termination without Cause | 440,000(1) | 306,504(2) | — | — | 8,250(4) | 754,754 | ||||||||||||||||||||||||||||||
Termination without Cause or for Good Reason in Connection with a Change in Control | 880,000(5) | 613,008(6) | |||||||||||||||||||||||||||||||||||
Termination without Cause | 465,000(1) | — | |||||||||||||||||||||||||||||||||||
Termination without Cause or for Good Reason in Connection with a Change in Control | 930,000(5) | 437,714(6) | |||||||||||||||||||||||||||||||||||
Termination without Cause | 380,000(1) | — | |||||||||||||||||||||||||||||||||||
Termination without Cause or for Good Reason in Connection with a Change in Control | 760,000(5) | 492,972(6) | |||||||||||||||||||||||||||||||||||
Termination without Cause | 370,000(1) | 240,500(2) | |||||||||||||||||||||||||||||||||||
Termination without Cause or for Good Reason in Connection with a Change in Control | 740,000(5) | 481,000(6) | |||||||||||||||||||||||||||||||||||
Year | Summary Compensation Table Total for PEO(1) ($) | Compensation Actually Paid to PEO(1)(3) ($) | Average Summary Compensation Table Total for Non-PEO NEOs(2) ($) | Average Compensation Actually Paid to Non-PEO NEOs(2)(3) ($) | Value of Initial Fixed $100 Investment Based on: | Net Income (Loss) (millions) ($) | Adjusted Pre-Tax Margin(5) ($) | |||||||||||||||||||
Total Stockholder Return (“TSR”) ($) | Peer Group TSR(4) ($) | |||||||||||||||||||||||||
2023 | 8,582,703 | 7,693,635 | 3,067,768 | 3,246,609 | 29 | 63 | (11) | 1% | ||||||||||||||||||
2022 | 3,747,416 | 2,548,608 | 1,794,258 | 1,419,035 | 54 | 49 | (37) | (1)% | ||||||||||||||||||
2021 | 3,598,210 | 4,372,050 | 1,412,615 | 1,685,241 | 72 | 76 | (102) | (20)% |
Compensation actually paid (“CAP”) to our NEOs represents the “Total” compensation reported in the Summary Compensation Table for the applicable fiscal year, adjusted as follows:
48Frontier Airlines 2024 Proxy Statement Narrative Disclosures to Pay Versus Performance Table The graphs below compare the CAP to our PEO and the average of the CAP to our non-PEO NEOs, with (i) our cumulative TSR and our Peer Group TSR, (ii) our net income (loss), and (iii) our Adjusted Pre-Tax Margin, in each case, for the fiscal years ended December 31, 2023, 2022 and 2021. TSR amounts reported in the graph assume an initial fixed investment of $100 as of April 1, 2021, the date of our initial public offering, and that all dividends, if any, were reinvested. Compensation Actually Paid and Company and Peer Group Cumulative TSR The chart below compares the CAP to our PEO and the average of our non-PEO NEOs with our cumulative TSR and our Peer Group TSR. Frontier Airlines 2024 Proxy Statement 49 Compensation Actually Paid and Net Income (Loss) The chart below compares the CAP to our PEO and the average of our non-PEO NEOs with our net income (loss). 50Frontier Airlines 2024 Proxy Statement Compensation Actually Paid and Adjusted Pre-Tax Margin The chart below compares the CAP to our PEO and the average of our non-PEO NEOs with our Adjusted Pre-Tax Margin. Financial Performance Measures We believe the following performance measures represent the most important financial performance measures used by us to link compensation actually paid to our PEO and non-PEO NEOs for the fiscal year ended December 31, 2023: •Adjusted Pre-Tax Margin (non-GAAP); •Year-end Net Cash; •Total Adjusted CASM (non-GAAP); and •Adjusted Net Margin (non-GAAP). Our annual incentives also include operational goals that are inclusive of the following metrics: Aircraft Availability at Start of Day, Controllable Turn Performance, DOT Mishandled Bag Rate (Industry Rank), and Head Start On-Time Percentage. For additional details regarding our most important financial performance measures, please see “Compensation Discussion and Analysis—Performance-Based Cash Incentives.” Frontier Airlines 2024 Proxy Statement 51 |
Plan Category | | | Number of shares to be issued upon exercise of outstanding options, warrants and rights | | | Weighted- average exercise price of outstanding options, warrants and rights | | | Number of shares remaining available for future issuance under equity compensation Plans(4) |
Equity compensation plans approved by stockholders(1) | | | 9,621,701(2) | | | $1.99 | | | 7,058,244 (3) |
Equity compensation plans not approved by stockholders | | | — | | | — | | | — |
Total | | | 9,621,701 | | | $1.99 | | | 7,058,244 |
(1)Consists of the 2014 Plan and the 2021 Plan. (2)Consists of 3,022,467 options and 213,836 RSUs outstanding under the 2014 Plan and 6,564,752 RSUs outstanding under the 2021 Plan. (3)Consists of 5,288,546 shares of common stock available for issuance under the 2021 Plan, excluding 9,801,055 shares to be issued upon exercise of outstanding options and rights. |
Name of Beneficial Owner | Shares of Common Stock Beneficially Owned | |||||||
Number | Percentage | |||||||
5% Stockholders | ||||||||
Indigo Frontier Holdings Company, LLC(1) | 178,834,034 | 79.9% | ||||||
Directors and NEOs | ||||||||
William A. Franke (2) | 178,873,422 | 79.9% | ||||||
Andrew S. Broderick (3) | 39,388 | * | ||||||
Josh T. Connor (4) | 90,544 | * | ||||||
Brian H. Franke (5) | 39,388 | * | ||||||
Robert J. Genise (6) | 335,579 | * | ||||||
Bernard L. Han (7) | 389,672 | * | ||||||
Ofelia Kumpf (8) | 39,224 | * | ||||||
Michael R. MacDonald (9) | 93,272 | * | ||||||
Patricia Salas Pineda (10) | 90,578 | * | ||||||
Alejandro D. Wolff (11) | 65,228 | * | ||||||
Barry L. Biffle (12) | 2,226,510 | * | ||||||
James G. Dempsey (13) | 897,175 | * | ||||||
Howard M. Diamond (14) | 543,074 | * | ||||||
Mark C. Mitchell (15) | 210,746 | * | ||||||
Trevor J. Stedke (16) | 133,985 | * | ||||||
Rajat Khanna (17) | 8,622 | * | ||||||
All executive officers and directors as a group (19 persons) (18) | 184,120,442 | 81.5% |
Name of Beneficial Owner | | | Shares of Common Stock Beneficially Owned | |||
| Number | | | Percentage | ||
5% Stockholders | | | | | ||
Indigo Frontier Holdings Company, LLC(1) | | | 178,834,034 | | | 82.2% |
Named Executive Officers and Directors | | | | | ||
William A. Franke(2) | | | 178,841,126 | | | 82.2% |
Andrew S. Broderick(3) | | | 7,092 | | | * |
Josh T. Connor(4) | | | 109,404 | | | * |
Brian H. Franke(5) | | | 7,092 | | | * |
Robert J. Genise(6) | | | 333,283 | | | * |
Bernard L. Han(7) | | | 357,376 | | | * |
Ofelia Kumpf(8) | | | 6,928 | | | * |
Michael R. MacDonald(9) | | | 60,976 | | | * |
Patricia Salas Pineda(10) | | | 58,282 | | | * |
Alejandro D. Wolff(11) | | | 32,932 | | | * |
Barry L. Biffle(12) | | | 3,983,745 | | | 1.8% |
James G. Dempsey(13) | | | 1,390,207 | | | * |
Howard M. Diamond(14) | | | 653,295 | | | * |
Craig R. Maccubbin(15) | | | 7,471 | | | * |
Jake F. Filene(16) | | | 86,122 | | | * |
All executive officers and directors as a group (17 persons)(17) | | | 186,639,759 | | | 85.8% |