Serious Governance Problems at Bombardier

By Anita Anand

Bombardier decided yesterday to defer payment of a portion of bonuses to senior management which represented a 48 percent increase in compensation over the previous year. This move is insufficient. We have in Bombardier a company in trouble: it has laid off employees, delayed performance of its contracts and taken federal and provincial funding. Is this company really in a position to be increasing the compensation of its senior management? Deferring a portion of executive compensation is not a fix: because of the company’s dual class structure, at any time, the board of directors can reverse its decisions. In other words, it is not accountable. Given that it is the recipient of federal taxpayer money, this should be unacceptable to all Canadians: why should we be funding Bombardier the company let alone the inflated take home pay of its senior management? See article from the Canadian Press.