The Caisse de dépôt et placement du Québec says it has voted against Bombardier‘s executive compensation plan in a say-on-pay resolution to be decided at the company’s annual meeting on Thursday.
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The Quebec pension fund manager, which owns shares and is a partner in the company’s railway division, says it has also abstained from supporting the re-election of Bombardier (TSX:BBD.B) executive chairman Pierre Beaudoin.
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While the Caisse says it supports CEO Alain Bellemare’s turnaround plan, it wrote in a letter to the company that the board fell short in approving a compensation plan that generated outrage and protests.
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It says a later decision to delay payments by one year until 2020 was necessary and welcome.
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However, the Caisse says the initial decision reflects a “lapse of governance.”
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It also says the board must improve its governance and called for the board to be chaired by a fully independent director, rather than a member of the family that controls the company through its multiple-voting shares.
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