Boeing ties employee incentive plan to company-wide performance

Boeing links worker bonuses to company-wide performance

Robert Besser
13 Mar 2025, 15:07 GMT+10

Boeing ties employee incentive plan to company-wide performance

Boeing has revamped its employee incentive plan, tying annual bonuses for more than 100,000 workers to overall company-wide performance rather than individual business units
The change, outlined in Boeing’s 2025 proxy statement filed with the U.S. Securities and Exchange Commission late last week, reflects a shift in the company’s approach to financial and operational accountability
Under the new structure, 80 percent of bonuses will be based on Boeing’s financial performance, while the remaining 20 percent will depend on improvements in safety, quality, and program execution

SEATTLE, Washington: Boeing has revamped its employee incentive plan, tying annual bonuses for more than 100,000 workers to overall company-wide performance rather than individual business units.

The change, outlined in Boeing's 2025 proxy statement filed with the U.S. Securities and Exchange Commission late last week, reflects a shift in the company's approach to financial and operational accountability.

Under the new structure, 80 percent of bonuses will be based on Boeing's financial performance, while the remaining 20 percent will depend on improvements in safety, quality, and program execution.

The decision comes just days after CEO Kelly Ortberg emphasized the need for Boeing's various business units to work together, citing employee feedback that he expects will be "brutal to leadership."

Ortberg's total compensation for 2024 amounted to US$18.4 million, including a $1.2 million signing bonus, a $525,000 salary since joining in August, and $313,000 in relocation assistance to move to Seattle. The majority of his compensation came in the form of equity grants.

Former CEO Dave Calhoun, who left Boeing following a mid-air panel blowout incident involving a 737 MAX, received a total compensation of $15 million. The incident exposed serious quality control issues within the company.