Bombardier faces public backlash over executive pay raises
Bombardier is facing public anger over the significant pay raise provided to top-level executives, which coincided with layoffs affecting thousands of the company’s workers worldwide. The total pay of Canadian aircraft and train manufacturer’s top 5 executives and CEO rose to $32.7 million in 2016, compared to $21.9 million in 2015, according to a proxy circular distributed prior to the company’s annual meeting scheduled for the 11th of May, as reported by Reuters.
Last year, the plane maker had announced two series of layoffs directly affecting more than 14,000 people around the globe.
Canada’s Economy Minister Dominique Anglade advised the company to reflect on the backlash it received from the public after a social media storm caused by the pay raises.
Bombardier spokesperson Simon Letendre commented that higher renumeration is directly linked to the management’s success in achieving corporate targets for 2016, with the raises for the most part being dependent on performance and share prices.
“We respect the free market and choices companies will make,” Canada’s PM Justin Trudeau spoke publicly in Brampton, Ontario, commenting on the issue. “We also have a responsibility to ensure the investments we make with taxpayers’ dollars are leading to good jobs and growth.”
Bombardier which was on the brink of bankruptcy in 2015 received a $1 billion investment from the Quebec government in its CSeries aircraft. A loan package of $279 million for Bombardier’s CSeries and Global 7000 aircraft programs was announced by the Canadian government in February.