Bombardier’s executives, except Beaudoin, see pay rise

Bombardier Inc.’s five senior executives saw their compensation increase 12 per cent last year, while the former executive chairman who was at the centre of a controversy over executive pay in 2017 took home significantly less than in 2016.

According to the proxy circular released Friday afternoon ahead of the company ’s annual meeting in May, total compensation for the Montreal-based company’s top five executives and former executive chairman Pierre Beaudoin rose to $33.38 million in 2017, up from $31.25 million in 2016.

Beaudoin, a member of the Bombardier family, saw his total compensation decrease from $3.85 million in 2016 to $2.6 million this year, largely because he gave up the executive portion of his title as of June 30, 2017.

Beaudoin will be paid $763,500 annually in his role as chairman.

Bombardier also revealed that Laurent Beaudoin, Pierre’s father and the company ’s former chief executive, will retire at the close of the annual meeting from his position on the board of directors.

Chief executive officer Alain Bellemare received $10.6 million in 2017, up from $9.5 million the year before, including $1.1 million base salary and $2 million share-based awards.

According to the proxy circular, Bombardier’s senior executive’s increase in compensation was driven by “over-performance relative to short-term EBIT and (free cash flow) targets … while base salary and long-term incentives were relatively stable before any changes in foreign exchange rates.”

“Under Alain Bellemare’s leadership, Bombardier is making great progress executing its turnaround plan,” the document says.

“(Bellemare) implemented transformation initiatives that helped establish a track record of improving financial performance while management’s proactive and disciplined approach helped reach key program milestones.”

The compensation for the five top senior executives represents a 12 per cent increase from 2016, but drops to a 7 per cent increase when Pierre Beaudoin’s pay is considered.

Shareholders will have the opportunity at the upcoming annual meeting to vote on several proposals, including an advisory vote on compensation.

Bombardier responded to the proposal in the proxy saying the board believes adequate measures have already been put in place to ensure transparency and recommended that shareholders vote against the proposal.

Last year, Bombardier was criticized after senior executive compensation increased by 50 per cent at a time when the company laid off thousands while also seeking government assistance.

Several major institutional investors came out against the board’s compensation plan and withheld support for Beaudoin.