Next month, Boeing will pay out $169.7 million in annual incentive bonuses to nonexecutive, white-collar employees in Washington state and $405 million companywide. The average payout for local unionized engineering employees is $4,270 and for nonunion staff is $4,870.
Boeing will pay out $169.7 million in annual incentive bonuses to nonexecutive, white-collar employees in Washington state next month, a sum that’s up 20 percent from last year.
The payments will go to 37,427 eligible nonmanagement employees locally, including members of Boeing’s engineering union, the company said Friday.
The total payout to 20,929 members of the Society of Professional Engineering Employees in Aerospace (SPEEA) in Washington state is nearly $89.4 million — an average payout of $4,270.
Another 16,498 nonunion salaried staff in Washington state will get about $80.3 million — an average payout of $4,870.
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The bonuses are based on Boeing’s financial results in 2016, when the company made a profit of $4.9 billion.
Companywide, Boeing will pay out $405 million to about 86,000 eligible employees around the world, including 22,000 employees represented by SPEEA and another 64,000 salaried nonunion employees.
Employees will be paid their bonuses on Feb. 23.
The payout in the SPEEA incentive plan, which is part of the union’s contract, is based on a complex Boeing financial measure — the economic profit of the company, calculated by taking the year’s profits and subtracting an amount related to assets including inventory, buildings and equipment — and on the performance of the business unit the employee works in.
As a result, members of different company divisions will receive slightly different percentage payouts.
SPEEA-represented engineering employees in the Commercial Airplanes division will get 9.5 days of additional pay.
Their counterparts in the Defense and Space division will get 9.9 days’ worth, And SPEEA members in various other corporate units will get 9.7 days of additional pay. This last figure works out to an average of 3.7 percent of eligible annual pay.
The 64,000 salaried nonunion employees will receive their bonuses under a separate performance-based award plan that’s new this year. For them, the bonus is based not only on the overall company’s economic profit and the performance of the unit in which they work, but also on their personal year-end performance rating.
Accordingly, the nonunion bonuses for 2016 will range from just under 3 percent to just under 7 percent of the employee’s eligible compensation, Boeing said.
The International Association of Machinists union has its own separate incentive-pay plan, to be announced in a few days.
Boeing management also has its own separate bonus plan, with payout details released to managers in the coming days, Boeing said.