Ahead of Bombardier’s annual shareholder meeting on Friday, two of its largest shareholders have expressed concern about the company’s executive compensation structure.

The Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan are in support of a shareholder proposal calling for greater transparency at the Quebec-based plan and train maker.

Both pension funds have voted against proposed amendments to Bombardier’s stock option plan and deferred share unit plan. Ontario Teachers’ has also voted against the company’s non-binding executive pay proposal.

Read: Who are the top earners in pensions and HR in Ontario’s public sector?

“We have concerns with the awards granted to executives outside of the company’s normal compensation plan, as well as the lack of performance-based awards granted under the long-term incentive plan,” wrote the CPPIB in its proxy voting notes.

“However, the company is currently in a restructuring phase and the outside of plan awards were made in connection with a significant management transition. In light of this context and executive pay considered as a whole, we have cautiously voted in support of the Advisory Vote on Executive Compensation and will be closely monitoring compensation and disclosure practices at the company going forward.”

Read: 20% of employers link pay to performance

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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