Caisse votes against Bombardier compensation, abstains from supporting Beaudoin

Public outrage grows over Bombardier’s bonuses, bailouts
WATCH ABOVE: Outrage continues in Quebec over executive compensation at Bombardier, despite the company formally today postponing pay packages to six executives. Some opponents are calling on Quebec and the federal government to reopen their investment deals with the company and implement controls on corporate pay. Amanda Jelowicki reports.

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.

READ MORE: Protests continue in Montreal over Bombardier CEO pay scandal

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.

READ MORE: Quebec opposition parties call delayed executive raises at Bombardier a ‘scandal’

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.

READ MORE: Bombardier delays executive pay hikes amid public outcry

However, the Caisse says the initial decision reflects a “lapse of governance.”

READ MORE: Bombardier chairman’s pay cut not enough to save company’s image, PR expert says

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.