Bombardier board approves
proposal to cut chairman's pay
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[April 11, 2017]
(Reuters) - Bombardier Inc
said its board of directors approved a proposal to slash
Executive Chairman Pierre Beaudoin's pay by $1.4
million, bringing his 2016 compensation to $3.8 million,
equal to his remuneration for 2015. |

Pierre Beaudoin, Executive Chairman of Bombardier Inc.,
speaks at the Milken Institute Global Conference in
Beverly Hills, California, U.S., May 2, 2016.
REUTERS/Lucy Nicholson |
The
move comes after Beaudoin asked the board to reset his
compensation as the rise in pay had "become a distraction" from
the company's regular work.
The Canadian plane and train maker has faced a backlash over its
executives' pay rises, which come after Bombardier announced two
rounds of layoffs in 2016 totaling 14,500 people over two years
at sites around the world.
Total compensation for the company's top five executives and
board chairman rose to $32.7 million in 2016, up from $21.9
million a year earlier, according to a proxy circular published
ahead of Bombardier's May 11 annual meeting.
Bombardier, which has received more than $1 billion in federal
and provincial government aid since 2015, awarded its top five
executives and board chairman raises of up to 50 percent for
2016.
The pay hikes sparked protests outside Bombardier's Montreal
headquarters last week and calls by opposition leaders for a
company freeze on executive compensation, with Canadian prime
minister Justin Trudeau criticizing the planned pay hikes for
its senior executives.
In addition, Chief Executive Alain Bellemare last week requested
the board to defer the payment of more than half of the total
planned 2016 compensation for its six named executive officers
until 2020.
The company also said the deferred compensation will only be
payable if Bombardier achieves performance goals that position
it for long term success.
(Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by
Sunil Nair)
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