Southwest salaries are governed by contract, so specific and unique rewards may not be
possible for most rewards to individuals. However, Southwest does try to incorporate rewards
with a sense of pride and recognitions for jobs well done (Wilson, 1999). There could be a
greater use of perks, cash rewards, or some other benefit or opportunity of value. The
philosophy is to give top management a below-mean salary, yet to reward other managers with
an above-mean salary, coupled with stock options, thus allowing managers to share in the
profitability they create. It is a point of contention to have standardized salaries, since pay can
no longer be used as a motivation to excel. Individual-based pay leads to competition and a loss
of team-oriented behavior (Bergmann and Scarpello, 2008). On the other hand, profit-sharing
rewards the group and can lead to rewarding social loafers on that team who do not contribute.