Bombardier execs to defer payment of part of their 2016 compensation
Apr 05 2017
It is being spearheaded by Bellemare, who was hired in February 2015 to replace Beaudoin as chief executive officer.
"Bombardier is extremely proud of its Quebec heritage". "We must act so that this problem does not recur".
The company sparked widespread scorn in Quebec with a plan filed with regulators last Wednesday to increase 2016 compensation for its senior executives by almost 50 per cent to a total of $32.6-million (U.S.) It was the most the plane maker has collectively paid senior management in at least three years. Details of the plan will be filed this week. It is because of this deep relationship that we are sensitive to the public reaction to our executive compensation practices.
The firestorm over an nearly 50 percent pay raise for corporate leaders added a self-inflicted wound to Bombardier, which is struggling to land new orders for an airliner plagued by development delays and cost overruns.
Although Quebec's governing Liberal Party, which invested $1-billion (U.S.) in the company's C Series program past year, appears to be satisfied with the company's response to the furor, the opposition Parti Québécois said it planned to table a motion in the legislature Tuesday asking Bombardier to forfeit the 2016 pay raises. The company a year ago also announced plans to eliminate more than 14,000 jobs.
"They say that they need us to tighten our belts and need sacrifices from the employees, it's a little disrespectful to ask that from the employees when they give themselves these kinds of bonuses", he said. "Alain ate humble pie and recognized after a few days that they had to backtrack".
Quebec Premier Philippe Couillard tweeted that he was "satisfied" with Sunday's climb-down by the firm.
"This is a slap in the face for Quebecers", Lisee said.
"The decision that (Bombardier) took shocked the population - and with reason", she said in calling for Bombardier to reconsider the pay increases. "We've learned a big lesson here", the CEO said on yet another outlet, RDI television.
In its regulatory filing, Bombardier attributed the higher compensation to a number of factors, including achieving profit and cash flow targets, securing CSeries orders and completing the first flight of the Global 7000 business jet. About $16 million in total compensation will be postponed until 2020, he told Ici Radio-Canada.
A Bombardier spokesman said the reduction in Beaudoin's compensation would amount to US$1.4 million.
"By any objective measure the Bombardier leadership team had an exceptional year in 2016", said Monty in his defence of the remuneration policy.
Moore, the McGill professor, said the company is caught in a tight spot. "If you want global talent you have to pay, the way the Canadiens have to pay for their stars".
About one-third of the jobs Bombardier is set to eliminate by 2018 are in Quebec. That means about 5,000 people in the province will be affected.
Earlier on Sunday, a protest against the pay raises was held outside Bombardier's downtown Montreal headquarters.
More than 50 percent of 2016 compensation for six Bombardier executives will be deferred following an uproar in Canada over the pay increases.
Bombardier further retreated Sunday on a hefty pay increase to six senior executives, announcing they would defer receiving payment on a sizeable chunk until a later time.
Eighty-four percent also said Quebec should review its support for the company. The company's critics, obsessed as they are with short-term results in place of long-term vision, may wish to focus on such outdated metrics as the $981-million loss the company reported in 2016, declining revenues, or a share price that remains not far off its historic lows. In the fiscal year ended December 31, 2016, we posted revenues of $16.3 billion.