Bombardier chair defends multi-million dollar exit package for former CEO

The chairman of Bombardier Inc. is defending the multimillion-dollar compensation plan handed to former CEO Alain Bellemare.

Pierre Beaudoin, grandson of the Quebec large’s founder, informed shareholders on the firm’s annual assembly Thursday that the board “revered its (contractual) obligations” to the previous chief government, that he stated have been comparable with insurance policies at different publicly traded firms in Canada and the U.S.

The bundle Bellemare acquired when he stepped down in April may attain $17.5 million, together with a minimal of $10 million in severance and almost $2.7 million in share awards. He’ll rake in an extra $4.9 million if the sale of Bombardier’s rail unit to France’s Alstom SA goes by means of following regulatory scrutiny.

Bellemare’s five-year tenure noticed the plane-and-train maker wrestle to handle a debt that now stands at greater than $9 billion as the corporate bought off division after division, leaving it a pure-play producer of personal jets — a high-end luxurious product in the course of a recession.

Quebec pension fund supervisor Caisse de depot et placement has criticized the compensation association, calling it “extreme.”

On the digital assembly Thursday, new CEO Eric Martel informed buyers that developments beneath his predecessor’s watch have been “unacceptable” as “repeated program delays and technical challenges tarnished” Bombardier’s popularity.

 

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