Bombardier management, executives face pressure at annual meeting

Ross Marowits, The Canadian Press</span>
Published Thursday, May 11, 2017 4:30AM EDT

DORVAL, Que. - Bombardier's senior management and executive chairman will be on the hot seat this morning as shareholders elect directors at the transportation company's annual meeting.

A protest involving Quebec union and political parties is planned for outside Bombardier's aircraft finishing centre as shareholders debate the company's controversial compensation plan.

Five of Canada's largest pension fund managers, along with several large American institutional investors, have said they won't support the re-election of Pierre Beaudoin, whose family controls the company through multiple-voting shares.

They will also oppose Bombardier's (TSX:BBD.B) executive compensation plan and some will withhold votes for several director nominees.

Bombardier's original plan was to award Beaudoin and its top five executives compensation hikes of nearly 50 per cent. Beaudoin later renounced the increases while other executives postponed the compensation plan by a year until 2020 after the company faced an outpouring of anger that included protests outside the company's Montreal headquarters.

That came after the company received assistance from the federal and Quebec governments totalling nearly US$2 billion over the past year.

The shareholders vote is only an advisory to Bombardier's board. However, mounting opposition could pressure a reaction from the founding family which owns 13 per cent of outstanding shares but controls 53 per cent of votes.

The Canada Pension Plan Investment Board, Caisse de depot, Ontario Teachers' Pension Plan, British Columbia Investment Management Corp., Alberta Investment Management Corp. and the Quebec Federation of Labour's Solidarity Fund have said they will oppose management of the family-controlled company.

Bombardier said Beaudoin will continue to stand for re-election, but would not comment until the matter is discussed at the meeting.

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