Employee Incentive Plan (EIP) Summary
This summary describes certain highlights of the Employee Incentive Plan (EIP). All details and governing provisions of the Plan are set forth in the official Plan document. If there is any conflict between this summary and the official Plan document, the official Plan document will be the controlling document in every case.
The EIP, as an incentive program, provides cash bonuses of between 1 and 20 days of additional pay to eligible employees if the Company achieves annual economic profit objectives.
- Currently, more than 114,000 nonexecutive employees are eligible.
- First payment occurred in the first quarter of 2001, based on meeting economic profit targets for the year 2000.
- Targets are very demanding and track with our goal to provide total shareholder returns within the top quartile of S&P 500 companies.
- Meeting the annual operating plan target for economic profit will result in two weeks (10 days) of extra pay. Exceeding the target will earn up to four weeks (20 days) of extra pay. Achieving economic profit levels below the operating plan goal but above a target minimum will pay between 1 and 9 days of extra pay. If target minimums are not met, no payments will be made.
- Economic profit targets are considered material information and will not be made public. However, progress toward the targets will be tracked quarterly and reported to employees following each earnings release.
- Employee eligibility for subsidiaries and selected smaller sites will be considered on a case-by-case basis.
A high-performance culture is critical to our future. We want our employees to be actively engaged in seeking customer-focused solutions to grow the business and boost economic profit. We will generate shareholder value and boost economic profit by focusing on the key aspects of our business identified in Vision 2016. In our daily efforts, we can enhance shareholder value by
- Improving quality and customer satisfaction.
- Trimming cycle times.
- Reducing costs.
- Streamlining processes, and more.
We all make decisions that affect the Company's revenues, costs, and use of assets. The Employee Incentive Plan asks for employees' commitment to think and act like owners of the business--and gives them a direct stake in that success. Objectives of EIP include
- Share Boeing's financial success.
- Motivate employees to focus on specific performance objectives.
- Reward employees annually based on overall Company performance.