COMP NEWS – Boeing recently awarded its largest round of bonuses to more than 59,000 employees in Washington state. These bonuses averaged $8,000 and served to eject $485 million into the Washington state economy.
More than 59,000 employees got an average bonus of more than $8,000 pre-tax.
Companywide, Boeing said it has awarded $1.1 billion in bonuses to about 133,000 eligible employees across the U.S. and beyond.
After successful production numbers, employees were awarded just shy of the maximum that their unions negotiated for.
Almost 15,000 local unionized engineers and technical staff received bonuses in their paychecks Thursday, varying from 5.6% of their 2021 pay for those in the commercial airplane division to 7.1% for those in aftermarket services.
Last week, Boeing paid its 26,000 local blue-collar machinists annual bonuses of 5.8% of their total 2021 pay.
Buoyed by increased production of the 737 MAX and improvements made in factory safety and quality, that’s just under the maximum 6% payout allowed in the union contract.
Boeing recently adjusted its bonus structure to be based on financial metrics outside of net profit and all bonuses payouts for 2021 were above the pre-set target.
Slammed successively by the grounding of the 737 MAX and then the pandemic-driven industry downturn, Boeing has adjusted its incentive plan in the past two years so that bonuses are no longer based as much on company profit as in the past — since that could have resulted in zero bonuses — but skewed more toward cash flow and operational data, including measures of quality and safety.
All those payouts, based on the company’s performance in 2021, are above the pre-set target, despite the company’s enormous $4.2 billion financial loss last year and operational setbacks that include the inability to deliver 787s because of manufacturing defects caused by robotic equipment.
In addition, Boeing executives are hopeful that they will also serve to encourage employee retention.
In a statement, Boeing’s Chief Human Resources Officer Michael D’Ambrose said, “We are proud to offer these incentives as part of a full package of benefits to attract and retain the best talent.”
To read more about Boeing’s bonuses, click here.
For more Comp News, see our recent posts.
Comp News is brought to you by CompXL, the flexible compensation software provider that enables mid- to large-size organizations to implement competitive pay structures such as multi-factor performance bonuses and retention pay.
