Friday , April 16 2021

Bombardier to leave the controversial executive compensation plan

Bombardier Inc. announced on Friday that it will monitor the request of the Quebec financial market regulator and will reject the controversial executive compensation plan.

The announcement followed a review by "Authority"is des marching financiers who found that airlines made their Autopilot deployment plan in August did not violate the securities law, but they probably had a negative perception.

"According to the AMF, the rapidly developing situation in Bombardier Inc. shortly after the ASDP was carried out in combination with a short period between its implementation and the start of transactions and the significant instability in the company's forecasts and revenues led to a negative perception of the plan, the regulator said in a statement.

Since mid-July, the company's shares have fallen by more than half to $ 2.33 for trading on Friday, partly due to anxiety over the high debt and the ability to generate free cash flow.

Managers were allowed to sell shares

Bombardier said in November, when the investigation was announced, that the plan allows some of its senior executives to sell their own shares as an additional incentive in performance-based compensation, as long as trade is done by independent securities intermediaries and in accordance with trading preferences.

According to Canadian securities laws and Bombardier trading policies, senior executives face restrictions on their ability to sell shares in the company. The plan permits the execution of trades in accordance with previously agreed instructions given when the employee does not have any material information that has not been disclosed, the company said in August.

On Friday, the regulator, who in November urged the company to suspend all related trades, "recommends Bombardier Inc. to consider holding" the plan.

Bombardier said he would ask his board of directors to end the compensation plan at their next meeting.

This is not the first time Bombardier has faced criticism of executive compensation. Two years ago, after consecutive rounds of layoffs, protests were struck when the OC received $ 32m in bonuses for CEOs.

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