NEW YORK, April 2 Bombardier Inc Chief
Executive Alain Bellemare requested the board defer the payment
of more than half of the total planned 2016 compensation for its
six named executive officers until 2020, amid public outcry over
The Canadian plane and train maker said in statement on
Sunday that the deferred compensation will only be payable if
the company achieves performance goals that position it for long
The statement by the CEO comes two days after executive
Chairman Pierre Beaudoin requested the board reverse his pay to
its 2015 level as the rise in pay had "become a distraction"
from the company's regular work.
The company has faced a backlash over its executives' pay
rises, which come after Bombardier announced two rounds of
layoffs in 2016 totalling 14,500 people over two years at sites
around the world.
Bombardier was forced to consider bankruptcy in 2015 after
facing a cash crunch while developing two new planes. Since
then, the Canadian government in February announced C$372.5
million ($283 million) in repayable loans for two of
Bombardier's jet programs.
Total compensation for the company's top five executives and
board chairman rose to $32.7 million in 2016, up from $21.9
million a year earlier, according to a proxy circular published
last week ahead of Bombardier's May 11 annual meeting.
Earlier on Sunday, a protest against the pay raises was held
outside Bombardier's downtown Montreal headquarters.
The statement from Bellemare also comes after Quebec's main
opposition party planned to introduce a motion on Tuesday
demanding Bombardier senior executives renounce their 2016 pay
raises, according to a tweet by a party spokeswoman on Saturday.
Shareholders will be able to vote at Bombardier's annual
meeting on the company's structure for awarding compensation,
Bombardier spokesman Simon Letendre said via email.
(Reporting by Devika Krishna Kumar in New York; additional
reporting by Allison Lampert in Montreal)