Bombardier to delay executive pay
Decision comes following outcry over company’s use of public funding
MONTREAL— After facing nearly two weeks of criticism, Bombardier said Monday that its board of directors approved changes to the compensation offered to several of its top executives.
CEO Alain Bellemare had asked the board to delay payment of more than half of last year’s total planned compensation for six executive officers, including himself, by one year to 2020, provided the company meets certain objectives.
Executive chairman Pierre Beaudoin also asked the board to cut his 2016 compensation by $1.4 million (U.S.) to equal the $3.85 million he received in 2015.
In a regulatory filing ahead of the company’s May 11 annual meeting, the Montreal-based company said the proposals were accepted and approved by the board. Had the changes not been approved by the board Monday, the executive compensation for 2016 would’ve been nearly 50 per cent more than what it would’ve been the previous year.
Bombardier had been at the centre of weekend protests over the compensation awarded to its senior executives. Dozens of angry protesters launched paper airplanes in front of Premier Philippe Couillard’s Montreal offices on Sunday to protest how the executives are compensated.
Earlier, many of them waved signs and shouted slogans such as “too much is too much!” during a march that began in front of the company’s headquarters.
Many of the protesters said they wanted the Quebec government to impose conditions on companies that receive public money so jobs are protected and executive bonuses are limited.
“It’s our money and the government is laughing at us,” said one protester, Pierre Brazeau. “If we don’t come out in the streets, they’ll continue to exploit us like they’re doing now.”
Bombardier has faced a storm of public criticism ever since it circulated documents showing six executives were originally in line for a roughly 50 per cent increase in compensation last year, despite the fact the company recently received a $372.5 million loan from the federal government and $1 billion (U.S.) from the Quebec government.
Opposition politicians say the company’s compensation reversal doesn’t go far enough.
Parti Québécois MNA Alain Therrien pointed out that Sunday’s protest was the second straight weekend of such action outside Bombardier’s headquarters.
“We can see this isn’t solved, even if Mr. Couillard would like it to be,” he said at the protest.
Quebec’s governing Liberal party used its majority to block several opposition motions calling on the government to take action last week, with Couillard arguing that government interference would send a bad signal to businesses.