financetom
Business
financetom
/
Business
/
Boeing to tie more of employee bonus pays to safety, WSJ reports
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Boeing to tie more of employee bonus pays to safety, WSJ reports
Mar 7, 2024 6:09 PM

(Reuters) - Boeing is overhauling how it pays employee bonuses to emphasize quality and safety, following production problems found after Alaska Airlines door plug blowout, the Wall Street Journal reported on Thursday.

The plan, one of the many to address the planemaker's quality issues, will be applicable to Boeing's nonunion workforce of more than 100,000 employees, managers and executives, according to the report, citing a memo sent to employees.

The biggest shift will be in the company's commercial unit, its largest, where safety and quality metrics will now account for 60% of annual bonuses, the report said.

Financial incentives at the unit comprised 75% of the annual award, while the remaining 25% was tied to operational objectives including quality and safety previously, the report added.

Metrics that will determine the rewards include employee safety, work done out of sequence on the assembly line and so-called rework required to fix problems, according to the report.

In Boeing's other two units, defense and services, financial metrics will still determine 75% of bonuses. But quality and safety will be the only factors to determine the operational scores, the newspaper said.

Executives and managers who oversee all units, including CEO Dave Calhoun, will be based on the average of all three, according to the report.

Boeing did not immediately respond to a Reuters' request for comment.

The company has been in the limelight after a Jan. 5 mid-air emergency involving a new Alaska Airlines 737 MAX 9 that lost a door plug at 16,000 feet (4,877 meters).

The Federal Aviation Administration barred Boeing from expanding 737 production and in January said "the quality assurance issues we have seen are unacceptable."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved