Bombardier board confirms it's cutting the executive chairman's pay after public backlash

 
Rebecca Smith
CANADA-SWISS-TRANSPORTATION-AIR
Pierre Beaudoin (r) had requested the board reset his compensation (Source: Getty)

Bombardier's board has approved a proposal to slash its executive chairman's pay by $1.4m (£1.1m), after a public backlash over the aerospace giant's planned pay hikes.

The cut brings chairman Pierre Beaudoin's 2016 compensation to $3.8m, equal to his remuneration for 2015.

Read more: Bombardier backtracks to delay part of exec pay after public backlash

The move comes after Beaudoin requested the board reset his compensation as the rise in pay had "become a distraction" from the firm's regular work.

The Canadian company, whose recovery was propelled by taxpayer funds, had noted the public anger in its home province of Quebec, in response to the pay rises for its executives.

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The plane and train maker had increased 2016 compensation nearly 50 per cent, after receiving $1bn in taxpayer aid and announcing its intention to cut more than 14,000 jobs worldwide.

Hundreds of people protested in front of the firm's Montreal headquarters earlier this month to complain about the payouts.

Beaudoin had said in a statement: "After listening to the recent public debate about the compensation of senior executives at Bombardier, I have asked the board of directors to reset my 2016 compensation, reducing it to the 2015 level.

The trust and confidence of our people and our governments are extremely important to the company, and to me.

It is clear that this situation has become a distraction to the important work done by our employees and senior management to return this great company to growth.

Read more: Bombardier to cut 7,500 jobs over the next two years

Last week, chief executive Alain Bellemare requested the board defer payment of more than half of the total planned 2016 compensation for its six named executives until 2020.

It has also said the deferred compensation will only be payable if Bombardier achieves performance goals that position it for long-term success.

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