Advertisement

Bombardier exec issues open letter defending pay structure after public uproar

Click to play video: 'Bombardier Chairman asks for pay cut in wake of public backlash towards company'
Bombardier Chairman asks for pay cut in wake of public backlash towards company
WATCH ABOVE: Bombardier's Executive Chairman has requested to take a pay cut in the wake of a public backlash over the compensations the Quebec-based company's executives are receiving. Tom Vernon reports – Apr 1, 2017

MONTREAL – Bombardier is defending its executive pay structure in the face of a public uproar over a hefty increase in compensation to senior management.

Jean Monty, the head of Bombardier’s human resources and compensation committee, issued an open letter Saturday saying the company must compete with firms globally to recruit and retain talent.

Monty’s letter also points out that 75 per cent of compensation for most senior Bombardier executives is based on meeting performance targets and is not guaranteed.

WATCH: Trudeau defends Bombardier bailout after execs take home millions in raises 
Click to play video: 'Trudeau defends Bombardier bailout after execs take home millions in raises'
Trudeau defends Bombardier bailout after execs take home millions in raises

READ MORE: Bombardier CEO asks directors to hike back his pay amid a public outcry

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

The company is facing public backlash after awarding a nearly 50 per cent pay increase to six top executives in 2016 over the previous year while receiving hundreds of millions of dollars in taxpayer subsidies.

Story continues below advertisement
WATCH: Millions of dollars to Bombardier execs after government bailout
Click to play video: 'Millions of dollars to Bombardier execs after government bailout'
Millions of dollars to Bombardier execs after government bailout

Compensation for the Montreal-based manufacturer’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.

READ MORE: Trudeau, Couillard defend Bombardier bailout after execs take home millions in raises

Monty’s letter also said pay comparisons between 2016 and 2015 are misleading because some of the executives started with Bombardier only part way through 2015 – for example Alain Bellemare was appointed President and CEO in February, 2015.

In an effort to calm the waters, Beaudoin issued a statement late Friday night asking the board of directors to reduce his compensation for last year to 2015 levels.

He said public trust is important to Bombardier and he expressed concern the issue is a distraction from the work employees at Bombardier are doing

Advertisement

Sponsored content

AdChoices