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> > At this point I'm starting to agree we should severely limit or outright ban stock-based or near-term performance based compensation. > If Boeing employee
by acdha 3y ago
> > At this point I'm starting to agree we should severely limit or outright ban stock-based or near-term performance based compensation.
> If Boeing employee compensation takes a hit, they will lose good engineers to Meta, Google, and TikTok which already probably pay 3X. You want safer planes? Help bid their stock up so that it attracts good engineers.
First, those are entirely different industries and skills, and the companies you mentioned all are doing layoffs so a steady paycheck at Boeing might be looking pretty good. More fundamentally, however, nobody said compensation would go away without being replaced but rather that it’d be restructured to avoid the incentive to juice short-term share prices. This would have little effect on Boeing engineers who are not given enough stock for that to be a huge deal but it’d have a big impact on the managers who have been making so many bad calls: if getting paid in cash means the financial engineers don’t find working there appealing and they’re replaced by real engineers, that’d be a net win for the company and the flying public.