Despite a record annual loss of $12 billion, Boeing plans to give out performance bonuses to most of its employees.
Boeing announced the structural change in its financial incentive plan. While previously the bonuses were paid based on profit, the manufacturer is now tying its financial goals to the timing of the first delivery of a 737 MAX after the flight ban was lifted. The bonuses are expected to be given out in March 2021. The payout will be adjusted depending on a personal performance score of each employer.
This will be the first bonuses in two years. With the grounding of Boeing 737 MAX and $636 million annual loss, the company’s employees had not received any bonuses in 2019 and in 2020.
“During a time when many of our customers will not be in a position to offer the same incentive, our board of directors recognizes the important strides the team has made,” wrote Boeing CEO Dave Calhoun in a message to employees.
The Boeing 737 MAX was ungrounded by the US Federal Aviation Authority (FAA) on November 18, 2021. On December 8, 2021, the manufacturer delivered the first 737 MAX after ungrounding to United Airlines and ensured there would be a bonus incentive plan for its workers.
As seen in the latest financial report, Boeing’s loss from operations climbed to $12.7 billion in 2020, up from nearly $2 billion the previous year. The company reported $11.9 billion of net loss, while in 2019 it was $636 million.
Overall, the company cut about 20,000 jobs, now employing a total of 141,014 staff, according to company officials.