Maurice Gallagher on management compensation
From Maurice J. Gallagher, Jr. "Management Challenges from the Tarmac to 30,000 feet" · · UC Davis Graduate School of Management
“None of our management have employment agreements. We pay a simple bonus based on performance, with low base salaries. You make your money on the upside. I don't take a salary; I haven't taken one for years. I'm a stockholder first and foremost.”
On , Maurice Gallagher, Executive Chairman at ALLEGIANT TRAVEL CO, spoke about management compensation during Maurice J. Gallagher, Jr. "Management Challenges from the Tarmac to 30,000 feet" on UC Davis Graduate School of Management.
About Maurice Gallagher
Maurice Gallagher, Executive Chairman of Allegiant Travel, spoke at a Dean's Distinguished Speaker event on September 17, 2016, where he discussed the company's business model and management philosophy. He stated that Allegiant stopped hedging fuel in 2007, explaining that the company adjusts capacity based on oil prices. Gallagher noted that the company had been profitable for 52 consecutive quarters and was operating at a 30 percent margin, which he described as "unheard of in the business." He attributed this success to a focus on leisure customers, the use of older airplanes, and cost efficiency. Gallagher also described his approach to management, saying he is "a big believer in stockholder benefits" and that none of Allegiant's management have employment agreements. He stated that he does not take a salary and that bonuses are based on performance. Gallagher discussed the challenges of scaling management as the company grew from a small commuter airline to one with 83 airplanes and 322 routes. He advised against giving too much money to young companies, saying they "don't learn how to do things inexpensively and efficiently."