The Globe and Mail reports in its Wednesday edition that Bombardier backer Caisse de depot et placement du Quebec is voting against the company's executive pay practices at its coming shareholder meeting.
The Globe's David Milstead and Nicolas Van Praet write that the Caisse is one of a number of North American pension plans that intend to rebuff Bombardier's compensation program. They have grown sufficiently discontented to oppose reappointing directors to the company's board. Canada Pension Plan Investment Board (CPPIB), B.C. Investment Management (BCI), as well as two major pensions from California and one from Florida, also say they are voting "no" Thursday.
At issue this year is Bombardier paying former chief executive officer Alain Bellemare a severance package of $12.35-million (U.S.) when he was terminated in March.
Promised future special payments and potential severance packages to other top executives when a deal to sell the company's train division closes in 2021 are also at issue.
Bombardier is certain to win this vote: The company's founding family owns a class of shares that gives it about 60 per cent of the total vote. Penny-stock Bombardier was removed Monday from Toronto's blue-chip index.
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