Employee Performance Incentive Plans

Employee Performance Incentive Plans Summary

Pay, incentives, benefits and well beingIncentives are one element of the company’s market-competitive total compensation package of pay, incentives, benefits and well-being programs. A cash bonus will be paid if the company meets its financial goals as measured using Economic Profit as adjusted to reflect core operating performance.

Economic Profit targets are very demanding and track with our goal to provide superior total shareholder returns. The targets are considered material information and will not be made public.

The incentive plans are designed to support a high-performance culture where employees are actively engaged in seeking customer-focused solutions to grow the business and increase economic profit. The objectives of the plans include:

  • Share Boeing's financial success
  • Motivate employees to focus on specific performance objectives
  • Reward employees annually based on overall Company performance

Below is a summary of the major annual incentive plans.

  • Boeing Executive Annual Incentive Plan (AIP) - variable component of an executive’s total compensation package. It is designed to attract and retain highly qualified, superior leaders, reward performance, and align our executives’ interests with the interests of our shareholders. Market-based annual incentive targets are established that reflect the appropriate balance between base and variable pay.
  • Management Incentive Plan (MIP) – effective Jan. 1, 2014, nonexecutive managers will participate in an annual incentive program with a cash bonus opportunity when overall company Economic Profit goals are met or exceeded. It is designed to attract and retain highly qualified, superior leaders, reward performance, and align our managers’ interests with the interests of our shareholders. Market-based annual incentive targets are established that reflect the labor markets for U.S. and in the countries in which we operate internationally.
  • Employee Incentive Plan (EIP) – plan provides a cash bonus opportunity to nonmanagement employees when the company meets or exceeds its Economic Profit goals. Depending on company financial achievement, employees can earn from one to twenty days additional pay.