Boeing lost $12 billion last year, but it’s still paying bonuses to its workers

Boeing lost $12 billion last year, largely owing to the grounding of the widely used jet, but had restructured its incentive plan, tying goals to the first delivery of the 737 Max once the Federal Aviation Administration cleared the plane to fly.

For employees, the bonus will be the first in two years. (The 2020 bonus was canceled after Boeing lost $636 million in 2019—again, owing to the grounding. Members of the machinists union, who have a separate agreement, did receive one, however.)

“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,” said Boeing CEO Dave Calhoun in a message to employees.

The bonus amounts will vary depending on which part of the business an individual works in—and on individual performance scores they receive from supervisors. Bonuses at Boeing generally range up to 7% of a worker’s annual salary, though most will receive less than that. (Manager bonuses follow a different scale.)

The 737 Max was ungrounded by the FAA in mid-November. Boeing delivered the first one on Dec. 8, which triggered the bonus. All totaled, Boeing delivered 27 new 737 Max jets in December. Yet the company still received more cancellations for the jet than it did orders, as the pandemic has depressed the market for new aircraft, because fewer people are flying regularly.

Boeing has borrowed billions of dollars and cut thousands of jobs through the grounding and pandemic to reduce costs.

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