Veteran US compensation expert Ken Feinberg has been hired by Boeing to oversee the distribution.
The multiyear payout is independent of lawsuits filed by families of the 346 people killed in the two 737 MAX crashes, which happened in October 2018 and March of this year, a Boeing spokesman said.
Chief Executive Dennis Muilenburg, who has repeatedly rejected suggestions of a design flaw in the 737 MAX, acknowledged implementation shortcomings.
A Reuters poll shows people are not familiar with airplane crashes in Indonesia and Ethiopia and are more concerned with ticket prices when they choose an airline.
Muilenburg said Boeing followed the same design and certification process it has always used and denied that the MAX was rushed to market. He said he would not resign, and left a press conference as reporters peppered him with questions.
The aviation giant announced on Wednesday it has suffered $1 billion after two deadly Boeing 737 MAX crashes. The company officials said they need to win back consumers' trust again.
Boeing has been under scrutiny following a March 10 Ethiopian Airlines crash of a 737 MAX that killed 157 people, the second deadly crash involving in the aircraft in five months.
Boeing share prices have struggled as the company loses the trust of the regulators and airlines in light of recent air crashes involving its 737 MAX planes.
The investigation into the crash, which killed all 189 people on board in October, has taken on new relevance as the US Federal Aviation Administration and other regulators grounded the model last week after a second deadly accident in Ethiopia.
Boing said it was updating software to address how the aircraft's flight control system MCAS (Maneuvering Characteristics Augmentation System) responds to erroneous sensor inputs.
Ethiopia's transport minister Dagmawit Moges says analysis of data from Boeing 737 MAX 8 black boxes show 'clear similarities' with October's Lion Air crash. Meanwhile, funerals were held for Ethiopia crash victims with little to bury.
Investigators of Ethiopian Airlines plane crash successfully downloaded the cockpit voice recorder of the Boeing 737 MAX 8, leading new details of what brought the plane down.
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