Boeing giving employee bonuses despite losing $12B last year

FILE - In this March 23, 2020, file photo, workers head out a gate at a Boeing airplane manufacturing plant, where a mural of a jet covers a massive door behind in Renton, Wash. Boeing Co. has said it will dole out annual performance bonuses next month to most employees despite losing $12 billion over the last year during the coronavirus pandemic. Most of the company's employees did not receive annual bonuses last year after it lost $636 million in 2019 because of the grounding of the 737 MAX by the Federal Aviation Administration, The Seattle Times reported. (AP Photo/Elaine Thompson, File)
FILE - In this March 23, 2020, file photo, workers head out a gate at a Boeing airplane manufacturing plant, where a mural of a jet covers a massive door behind in Renton, Wash. Boeing Co. has said it will dole out annual performance bonuses next month to most employees despite losing $12 billion over the last year during the coronavirus pandemic. Most of the company's employees did not receive annual bonuses last year after it lost $636 million in 2019 because of the grounding of the 737 MAX by the Federal Aviation Administration, The Seattle Times reported. (AP Photo/Elaine Thompson, File) (Copyright 2020 The Associated Press. All rights reserved)

SEATTLE – Boeing Co. has said it will dole out annual performance bonuses next month to most employees despite losing $12 billion over the last year during the coronavirus pandemic.

Most of the company's employees did not receive annual bonuses last year after it lost $636 million in 2019 because of the grounding of the 737 MAX by the Federal Aviation Administration, The Seattle Times reported.

In response, the company in February changed the structure of its incentive plan, tying its financial goals to the timing of the first delivery of a 737 MAX after its ungrounding. The company's bonuses were previously paid out based on profits.

Boeing CEO Dave Calhoun told employees on Thursday that the company's board of directors “recognizes the important strides the team has made.”

The 737 MAX was ungrounded in mid-November and the company delivered the first one on Dec. 8, ensuring there would be a bonus under the new incentive plan.

The bonuses are expected to be distributed next month and will vary depending on the department.

Employees also receive personalized performance scores from their managers, which adjust the payout.

For example, a commercial airplanes employee with a high performance score of 6%, will receive a 2020 annual bonus equal to 58% of 6%, or 3.5% of gross annual salary.