Shareholder group objects to former Bombardier CEO special payment
Advisory agency says practises raise ``serious questions'' given the company's weak financial performance before his dismissal.
MONTREAL — A shareholder advisory agency is urging Bombardier Inc. shareholders to vote against the company’s approach to compensation over the severance package to former CEO Alain Bellemare that could reach $17.5 million.
Glass Lewis says in a report that the plane and train manufacturer’s practises raise “serious questions” given its weak financial performance before he was dismissed last March.
The advisory firm switched its advice from initially supporting the remuneration policy following Bombardier’s decision at the end of the fiscal year to make Bellemare eligible for a special $4.9 million payment following the completion of the sale of Bombardier Transportation to Alstom.
Bellemare is also entitled to a severance of about $10 million plus close to $2.7 million in share awards.
Bombardier lost US$1.61 billion last year on revenues of US$15.8 billion in a year marked by persistent execution problems by the rail division.
Glass says it will still support the 13 candidates to the board of directors at the June 18 annual meeting.