So while aerospace stock Boeing (BA) took a serious hit this morning with word of a new class-action lawsuit firing up, it also brought out new word about its pay packages. And you might be surprised to find out how Boeing looks to offer bonuses this year. The news sent investors into a tailspin all their own, as shares dropped over 4% in Monday afternoon’s trading.
This year, reports noted, Boeing plans to change up how it offers annual bonuses for around 100,000 employees. In the past, the bonus amount was tied to business unit performance. Now, the bonus structure will be tied to how well the company as a whole does. The ratios are simple enough: 80% of the bonus will be determined by Boeing’s overall financial performance, while the remaining 20% will tie into “…program execution…” as well as improving safety and quality.
Meanwhile, numbers about the top brass paychecks also came out. Former CEO Dave Calhoun will walk away with $15 million from his truncated year, while Kelly Ortberg landed roughly $18.4 million. This included a $1.2 million signing bonus, as well as $525,000 in salary and $313,000 in relocation costs.
Now Hiring, Somehow
For those who don’t mind that their bonus structure is tied into things they have little to no control over, then you will be happy to hear that Boeing is hiring. Yes, Boeing had several rounds of layoffs in the last several months. But the San Antonio office is looking for several roles, including engineers, electrical operations, and general employee roles.
Meanwhile, in a twist that may surprise you, you have five minutes to live. Assuming, of course, you should happen to spot a Boeing E-4B aircraft in the sky, and you live in the United States. Reports note that seeing such a plane aloft is a potential sign that a nuclear attack has been deployed against the United States. The E4-B, also known as the “doomsday plane” for its ability to survive such a blast, is used to protect the president from such an attack.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 13 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 23.31% loss in its share price over the past year, the average BA price target of $196.88 per share implies 33.3% upside potential.
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