Bom­bardier’s Beau­doin loses more sup­port


TORONTO Canada Pen­sion Plan In­vest­ment Board and Al­berta In­vest­ment Man­age­ment Corp. have be­come the lat­est to come out against the re-elec­tion of Bom­bardier Inc.’s ex­ec­u­tive chair­man Pierre Beau­doin and the com­pany’s con­tro­ver­sial ex­ec­u­tive com­pen­sa­tion pack­age.

CPPIB, the coun­try’s largest pen­sion fund man­ager, said on its web­site Wed­nes­day it would with­hold its vote for Beau­doin and two other di­rec­tors as well as the pay pack­age. Share­hold­ers are to vote on the plan at the an­nual meet­ing Thurs­day.

AIMCo said it will with­hold its vote from five non-in­de­pen­dent di­rec­tors ex­clud­ing CEO Alain Belle­mare and mem­bers of the com­pen­sa­tion com­mit­tee.

It will also vote against the so­called com­pen­sa­tion res­o­lu­tion “due to a sig­nif­i­cant dis­con­nect be­tween pay and per­for­mance,” said spokesman Denes Nemeth. On­tario Teach­ers’ Pen­sion Plan and the Bri­tish Columbia In­vest­ment Man­age­ment Corp. also said they with­held their votes for the re-elec­tion of Beau­doin — a mem­ber of the fam­ily that con­trols Bom­bardier — and the pay pack­age, ac­cord­ing to their web­sites.

“Our as­sess­ment of re­cent events con­firms the need for in­de­pen­dent board lead­er­ship,” On­tario Teach­ers’ said in a state­ment Tues­day. “We typ­i­cally do not sup­port boards in­stalling an in­di­vid­ual in the role of ex­ec­u­tive chair.”

On­tario Teach­ers’ said it was vot­ing against the ex­ec­u­tive com­pen­sa­tion pack­age be­cause the com­pany failed to ad­e­quately ex­plain the link­age be­tween its tar­gets and pay.

“The re­sult­ing link­age be­tween pay and per­for­mance is not suf­fi­ciently jus­ti­fied,” On­tario Teach­ers’ said.

BCIMC not only with­held its vote for Beau­doin but eight other di­rec­tors as well, in­clud­ing Pierre’s fa­ther Lau­rent Beau­doin, for var­i­ous rea­sons in­clud­ing a lack of in­de­pen­dence, at­ten­dance at meet­ings or other is­sues, it said on its web­site.

It also voted against the ex­ec­u­tive pay pack­age, say­ing it be­lieved there was lit­tle cor­re­la­tion be­tween pay and per­for­mance. BCIMC owned roughly seven mil­lion shares in the com­pany as of March 31, 2016, the most re­cent hold­ings it has re­ported.

The funds join the Caisse de De­pot et Place­ment du Que­bec and Sol­i­dar­ity Fund QFL, which also with­drew sup­port for Beau­doin and the com­pen­sa­tion plan.

The pay pro­posal fu­elled out­rage af­ter Bom­bardier in­creased ex­ec­u­tive pay al­most 50 per cent de­spite re­ceiv­ing tax­payer aid and announcing plans to cut more than 14,000 jobs. The Mon­treal-based maker of planes and trains later re­duced Beau­doin’s pay and de­layed some re­mu­ner­a­tion for lead­ers, in­clud­ing CEO Alain Belle­mare.


AIMCo has with­drawn sup­port for Pierre Beau­doin as Bom­bardier’s ex­ec­u­tive chair­man.


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