Boeing has revamped its bonus scheme to prioritize safety over profit targets, especially in light of recent safety concerns involving Alaska Airlines and United Airlines flights. After an incident where a plane door blew out during an Alaska Airlines flight, Boeing has increased the focus on safety and quality metrics in its commercial unit by accounting for 60 percent of annual bonuses, up from 25 percent previously. Financial incentives will now only make up 40 percent of bonuses, instead of the previous 75 percent.
In Boeing’s other units, financial metrics will still dominate bonus awards, but quality and safety will be significant factors in determining operational scores. CEO Dave Calhoun and other executives’ bonuses will be based on an average of scores from all three units.
These changes come in the wake of a United Airlines Boeing 737 MAX 8 veering off the runway after landing in Houston following other recent incidents involving Boeing aircraft. The FAA is investigating these incidents, including an engine fire and wheel falling off a plane. Boeing has faced billions of dollars in losses in the stock market due to these safety concerns.
Overall, Boeing is focused on delivering a safe and quality product to customers, and the company is taking steps to address safety concerns and prioritize safety above all else. The FAA continues to investigate these incidents, and Boeing is working to address safety issues within its fleet of 737 aircraft.
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