Boeing will pay out $140.9 million in annual incentive bonuses on Feb. 25 to a total of 42,197 eligible non-executive employees in Washington state, including members of its engineering union.
Boeing will pay out $140.9 million in annual incentive bonuses to nonexecutive, white-collar employees within Washington next month, a sum that’s down 26 percent from last year’s bonuses.
The payments will go out Feb. 25 to a total 42,197 eligible employees, including members of Boeing’s engineering union, the company said Thursday.
Individual awards from the incentive plan range from 8.25 to 9.75 days of additional pay, depending on the business unit where the employee worked.
The awards are based on the 2015 financial performance within the commercial-airplane and defense units, and by the company as a whole, measured against “economic profit” targets that Boeing sets in advance.
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The outcome is that while Boeing’s net profit in 2015 was $5.18 billion, down just 5 percent from $5.45 billion in 2014, the bonus awards are down more sharply.
The complex “economic profit” metric is calculated by taking the year’s profits and subtracting an amount related to assets including inventory, buildings and equipment.
Boeing said that “while 2015 was a solid year for the company and our employees, the economic profit scores were not as high as those for 2014 performance.”
The latest payout was lowered by two big charges to earnings during 2015: an $885 million write-off to cover the production-rate cut on the 747 program and an earlier $835 million write-off to cover higher engineering and manufacturing costs on the KC-46 Air Force tanker program.
Last February, Boeing paid out bonuses based on the company’s 2014 financial performance totaling $191.4 million to its Washington employees, with individuals getting between 12.25 and 12.75 days of extra pay.
In 2014, when 13,000 managers who are now in a separate incentive plan were included, the total based on the company’s 2013 financial performance was $334 million, with individuals getting 16 to 17 days’ extra pay.
The International Association of Machinists union has its own separate incentive-pay plan, the results of which Boeing said will be announced in the coming days.