Boeing has made significant changes to its annual bonus scheme by increasing the emphasis on safety metrics rather than profit targets, following several incidents that raised concerns about quality and safety. In response to a door plug blowout incident on an Alaska Airlines flight in January, the company’s commercial unit will now base 60 percent of annual bonuses on safety and quality, up from 25 percent. This shift in focus comes after the Federal Aviation Agency (FAA) and investors pressured Boeing to address safety concerns in its operations.
The change will also affect the bonuses of CEO Dave Calhoun and other executives, with their awards being based on an average of scores across all three units. While the defense and services units will still have financial metrics determining 75 percent of bonus awards, safety and quality will be critical factors in operational scores.
Recent incidents involving Boeing aircraft, such as an engine fire on a 737 and a wheel falling off shortly after takeoff, have further underscored the need for a greater emphasis on safety measures. The FAA has launched a full investigation into the most recent event involving a United Airlines Boeing 737 MAX 8 veering off the runway in Houston. Despite the string of disasters, Boeing remains committed to delivering a safe and quality product to its customers and is closely monitoring the situation to provide necessary support to United Airlines and investigators.
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