Boeing's share price continued its slump Monday, bringing down the expected payout from a company incentive plan to more than 80,000 current...

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Boeing’s share price continued its slump Monday, bringing down the expected payout from a company incentive plan to more than 80,000 current and former Boeing employees in the Puget Sound region.

Based on the day’s average share price of $66.15, employees who have been at Boeing four years can expect a payout at the end of July of about $1,760, paid in company stock.

Those who worked for part of the four-year qualifying period that ended Monday will get a prorated amount.

Shares fell 1.8 percent on the final day of the period to close at $65.72. The shares have lost more than a fifth of their value in the last month, the biggest monthly decline for Boeing stock since the 2001 terror attacks.

If the incentive plan’s qualifying period had ended exactly a month earlier, with Boeing stock at $82.77, employees with full four-year participation would have received about $3,700 in stock.

Boeing’s Share Value Trust pays nonexecutive employees once every two years, assuming the stock price is above a predetermined threshold — in this case, $54.

“We’re clearly pleased that we will have another payout this period, but like everyone covered by the plan, we’re disappointed that outside market events are causing a decline in the value of the award,” spokesman Todd Blecher said. “There’s a lot going on in the world affecting Boeing’s stock price.”

The last payout, in July 2006, rewarded workers who had been with the company for four years with $5,231.46, Blecher said.

Since the stock peaked in May at $87, it has been dragged down by fears that the airline crisis triggered by high jet-fuel prices will slow Boeing’s commercial sales.

Last week, after a Goldman Sachs analyst reduced his rating on the stock from “neutral” to “sell,” the stock fell 7 percent in one day.

Until last week, the last time Boeing shares traded below $70 was in January 2006. The stock hit a 52-week high of $107.83 in July 2007.

Boeing won’t release full details of the payout until mid-July, as it calculates the various levels of participation in the plan for a total of about 196,000 people companywide.

Dominic Gates: 206-464-2963 or

Information from Bloomberg News was included in this report.

$3 million fine

over foreign parts

Boeing has agreed to pay a $3 million fine for exceeding value limits on purchases of parts from foreign suppliers for its military products.

Boeing spokesman Tim Neale said the Chicago company discovered the violations and reported them to the State Department.

Boeing violated manufacturing license agreements required under federal regulations governing international arms sales.

The suppliers were in Australia, the United Kingdom, Canada, Israel, Italy, Japan, the Netherlands, Switzerland and Austria.

Neale says Boeing has been working closely with the State Department to tighten its procedures. Boeing also agreed to report its progress to the State Department during the next three years.

The Associated Press