Boeing to Offer Profit-Based Incentives

Boeing Co. said that it will offer more than 80,000 nonunion employees annual cash bonuses if the company meets or beats new financial targets. The bonuses are worth as much as two weeks’ salary, with the first possible payout scheduled for early 2001. The incentives will be based on Boeing’s economic profit, which is calculated by subtracting from net earnings a charge for the cost of inventory, plants and equipment. The plan is intended to encourage managers to consolidate factory-floor operations and shut unprofitable businesses to free cash for use elsewhere. Seattle-based Boeing has been trying to make finances a bigger part of a traditionally engineering-dominated culture since it slipped to a surprising loss in 1997. Boeing shares closed down 63 cents at $43.69 on the NYSE.