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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Tuesday, July 1, 2008 Boeing payouts fall to $1,800 By Michelle Dunlop Herald Writer EVERETT -- Over the past week, Boeing Co. workers have seen their take of a long-awaited stock payout dwindle as the price plummeted. An employee incentive plan tied to Boeing's stock price dropped 20 percent in the month of June. The decline means Boeing workers, who would have received a stock payout valued at about $3,000 a week ago, will get only an estimated $1,800. The company calculates the stock distribution based on Boeing's average stock price on Monday -- $66.18. Employees are paid based on the number of months they've worked for Boeing over the past four years. In the Puget Sound region, about 80,000 retired and active Boeing workers will be eligible for a partial or full payout from the incentive plan. Boeing won't have the official distribution amount until mid-July, said Todd Blecher, a spokesman for the company. "We're pleased that there will be a payout of the Share Value Trust," Blecher said. The company's stock had to close above $54 for the trust to pay out a minimum amount. The ShareValue Trust plan comes due every two years. In 2006, Boeing paid out $5,231 to workers who had been with the company for the previous four years. A full payout in 2004 was $900. "Obviously, we are disappointed that market events beyond our control have impacted the amount of the payout," Blecher said. The aerospace giant's shares have fallen nearly 14 percent since last Monday, when a $76 stock price would have yielded a distribution of about $3,000. Had Boeing's stock managed to close at $70, the payout would have been $2,150 for employees who have been with the company the past four years. High oil prices have hurt Boeing's stock in recent weeks. Last week, an analyst with Goldman Sachs downgraded Boeing's stock to "sell" from "neutral." The analyst said the high jet fuel prices would lead to fewer aircraft orders and order cancellations. Boeing has a backlog of roughly 3,600 unfilled orders worth $271 billion. Boeing's shares have fallen more than $40 from a high of $107.83 last July when Boeing unveiled its new 787 Dreamliner. The company estimated that at a $103.40 stock price, its employees would have received a payout of $6,500. Delays of Boeing's Dreamliner have steadily pushed down the company's stock price. The first delivery of the 787 has been pushed back by 15 months until the third quarter of 2009. Most nonexecutive Boeing employees -- including the company's Machinists and engineers -- are eligible for the ShareValue Trust plan. The final scheduled payout from the ShareValue Trust comes at the end of June 2010, when Boeing's stock will need to be above $87. Boeing has not decided if it will extend the Trust out beyond that date, Blecher said. In its early meetings with labor unions ahead of this year's contract negotiations, Boeing officials have said they want to implement incentive plans tied to production gains. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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