Boeing has announced a significant shift in its employee bonus structure, placing a stronger emphasis on safety and quality in the wake of recent controversies. The company, still grappling with the fallout from the 737 MAX incidents, will now tie 60 per cent of annual bonuses in its commercial airplane unit to safety and quality metrics.
This represents a major change from the previous system, where financial performance dominated bonus calculations, accounting for 75 per cent of the total award. The remaining 25 per cent was linked to operational objectives, including – but not limited to – safety and quality.
The new system comes into effect immediately, with this year’s bonuses focusing solely on safety and quality metrics. These metrics will encompass a range of factors, including employee safety, reworked tasks, completed work required for delivery of existing airplanes, and overall adherence to quality standards.
In a webcast to employees, Boeing COO Stephanie Pope emphasised the importance of aligning incentives with the company’s core values. “It’s very, very important to drive the outcomes that we’re all committed to, and that’s to deliver a safe and quality product to our customer,” she stated.
This announcement signifies a clear attempt by Boeing to prioritise safety and regain public trust after a series of incidents that raised concerns about the company’s manufacturing and quality control processes. By directly linking employee compensation to safety performance, Boeing hopes to incentivise a cultural shift that prioritises the well-being of passengers and the integrity of its aircraft.