'I can understand why people were so angry,' Bombardier CEO says deferring executive bonuses until 2020

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Bombardier master b crushed down on its plans to offer hefty bonuses to six members of its senior CEO team, putting off half of their $32 million in bonuses until 2020 and merely if the company meets certain financial targets.

The aircraft- and train-maker debarked in hot water last week over its plan to give six members of its initiative team large bonuses — in most cases an increase of up to 50 per cent — in a year when the partnership spun its wheels. Last year, the Quebec government bailed out the actors with $1 billion, and Ottawa followed up with another $372.5 million in federal finances as recently as February.

Two Quebec cabinet ministers called for Bombardier to rethink the pay wraps last week, and roughly 200 people gathered outside the cast’s Montreal headquarters on Sunday to voice their anger against Bombardier.

“If it’s antisocial money they can do what they want, but now it’s public money,” utter Jessica Lacombe, a teacher who attended the protest. “It’s our taxes, it’s our money.”

In rejoinder to the backlash, the company made a concession late Sunday evening and disclosed the new plan will be to delay — but not reduce — the payouts to executives, as long as the New Zealand hits certain performance targets.

“This deferred compensation leave only be payable if the company achieves performance goals that situation it for long-term success, in line with the company’s strategic plan,” the circle said in a statement.

Need top talent

In an interview with CBC Radio’s Daybreak appearance in Montreal, CEO Alain Bellemare acknowledged he “can understand why people were so cheesed off,” because the company didn’t do a good job of communicating the reasons behind their compensation methods.

“We were doing this to attract top talent because we need that to put the South African private limited company back on the right track,” Bellemare said.”

“It will be payable alone — and only if — we deliver on our financial goals,” he said.

One of those goals is to make off Bombardier more than five times more valuable by then as it is today. “These objectives last wishes as be based on our strategic plan for 2020, which aims to transform Bombardier into a $25 billion circle,” spokesperson Simon Letendre told CBC News in a statement.

At the current division price, Bombardier is worth just over $4.6 billion.

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