Financial PostDigital Access | Sign in / Register

TrendingBombardier | Taxes | Brexit | NAFTA | Canadian dollar | Family Finance

Bombardier’s top execs get almost 50% pay raise as company lays off thousands, taps government aid

Bombardier chief executive Alain Bellemare.
Canadian PressBombardier chief executive Alain Bellemare.

MONTREAL — Bombardier’s senior executives saw their compensation rise by nearly 50 per cent last year at a time when it laid off thousands of workers, sought government aid and saw the first CSeries passenger jet take flight.

Total compensation for the Montreal-based company’s top five executives and board chairman Pierre Beaudoin was US$32.6 million in 2016, up from US$21.9 million the year before, according to a proxy circular ahead of its May 11 annual meeting.

CEO Alain Bellemare received US$9.5 million, up from US$6.4 million in 2015, including US$5.2 million in share and option-based awards and a US$1 million salary.

Bellemare’s annual bonus almost doubled to US$2.36 million.

Beaudoin’s compensation increased to US$5.25 million from US$3.85 million a year earlier.

In the regulatory filing, Bombardier attributed the higher compensation was due 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.

Bellemare was also credited with achieving earnings at the high end of the company’s guidance, exceeding profit margin targets in all business segments and making significant progress on achieving the company’s plan to revive its fortunes.

Company spokesman Simon Letendre added that a large portion of the compensation is not guaranteed.

“For instance, 85 per cent of the compensation of the president and CEO is at risk and 28 per cent is comprised of stock options whose value depends on the appreciation of the Bombardier stock, something that would of course benefit all shareholders,” he wrote in an email.

Bombardier is in the midst of a five-year turnaround plan that has involved mass layoffs as it tries to regain its financial footing. It is eliminating 14,500 jobs around the world by the end of next year.

Shares of Bombardier (TSX:BBD.B) last year increased 61 per cent to $2.16 on the Toronto Stock Exchange. They gained one cent at $2.09 in Wednesday morning trading.

The company cut its loss to US$981 million last year, down from US$5.34 billion in 2015 despite lower revenues.

The federal government announced in February a $372.5-million loan for the CSeries and Global 7000 programs to be repaid over 15 years.

Last year, Bombardier received a US$1-billion investment for the CSeries program from the Quebec government in exchange for a 49.5 per cent stake. The company also sold a 30 per cent stake in its railway division to pension fund manager Caisse de depot for US$1.5 billion.

Bombardier also revealed Wednesday that former Quebec premier Daniel Johnson and ex-Bell and Nortel CEO Jean Monty are stepping down from its board of directors. They will be replaced by Camso CEO Pierre Marcouiller and Antony Tyler, former CEO of Cathay Pacific Airways and the International Air Transport Association.

Topics: , , ,

  • Find a Story
  • Stock Search

News Videos





What is Ontarios Fair Housing Plan? 1:09

Email Alerts

Get the latest news in your inbox as it happens.

FP Picks

If you live in the Greater Toronto Area, real estate prices will continue to go up

Tim Hudak on why Ontario’s Fair Housing Plan might not work: Unless we get more houses to the market, we’ll be in the same boat

Read Ontario’s 16-point plan to cool Toronto and the Greater Golden Horseshoe region’s red-hot housing market

Ontario's Fair Housing Plan introduces a comprehensive package of measures to help more people find affordable homes, increase supply, protect buyers and renters

From Microsoft upgrade schedules to Intel canceling its Developer Forum, here’s news IT leaders need to know

Also included in this week's update are HPE and CSC's spin-merge being completed and new products from Amazon Web Service

Lawrence Solomon: How city politicians are helping Amazon destroy your favourite local retailers

Lawrence Solomon: Brick-and-mortar stores are falling by the thousands, but don’t blame Amazon — it’s municipalities that are wielding the wrecking ball

WATCH Trading Desk: Nike vs Adidas. What team are you on?

The battle between Nike and Adidas isn’t going anywhere, but the Brand with Three Stripes has taken the lead of late, in the minds of consumers and investors. That might make it the perfect time to buy Nike stock.