Bombardier Inc. honoured fresh pension fund opposition to the re-election of its executive chairman and the Quebec supervision said the plane and train maker should listen to the growing numeral of institutional shareholders citing governance concerns.
The Canada Pension Method Investment Board (CPPIB), the country’s largest pension fund head, withheld its vote for the re-election of Pierre Beaudoin at Bombardier’s annual convention on Thursday.
The Ontario Teachers Pension Plan (OTPP) also reserved its vote on his re-election on Tuesday, echoing similar moves by Quebec and British Columbia resources. «Our assessment of recent events confirms the need for independent board directorship,» the OTTP, which does not disclose its position, said on its website.
Beaudoin, a erstwhile chief executive, is a scion of Bombardier’s founding family, which rules the company through its dual-class share structure. The shareholders’ decision follows a fresh outcry over controversial executive pay hikes at Bombardier, which Beaudoin later approved to forgo and other executives agreed to defer.
Beaudoin is expected to loiter on this week despite the opposition, two company sources said. The dearest’s controlling stake means the pension funds’ moves are largely symbolic. The pay shouts of up to 50 per cent for 2016 came after Bombardier received more than $1 billion in federal and parish pump government funding, sparking protests outside Bombardier’s Montreal headquarters.
Quebec Briefness Minister Dominique Anglade said the company should «clearly be heed to its shareholders.» While the Quebec government, a major investor in Bombardier’s CSeries narrowbody jet program, will-power not take a position on Beaudoin’s future as executive chairman, Anglade contemplated she understood shareholders’ concerns.
«I’m not entirely surprised because there was a determination that was made that led to an unacceptable pay increase,» she said in a telephone interview. A Bombardier spokesman dwell oned a Monday statement that shareholders would «have an opportunity to deliberate over these important questions» at the May 11 meeting.
On Monday, Quebec’s largest benefit fund Caisse de depot et placement, one of Bombardier’s biggest shareholders, powered that it had withheld its vote for Beaudoin and called for a fully independent Mr Big to head the board. «The fact that they publicized this is to convocation shareholders to voice their opposition,» an analyst who covers Bombardier bid of the Caisse.
British Columbia’s main public sector pension lucre has gone further, saying it planned to withhold support from all five of the Bombardier-Beaudoin ones nearest members on the company’s board, along with compensation committee colleagues seeking re-election.