Bombardier Inc. executive chairman Pierre Beaudoin saw his total compensation fall 14 per cent last year as the company froze the base salaries of non-unionized staff and he failed to meet certain performance targets.
Mr. Beaudoin, who stepped down as chief executive of the plane and train maker in February in the face of waning investor confidence in management, earned total direct compensation of $5.16-million as CEO in 2014 compared to $6-million the year before, according a regulatory filing Tuesday. The amount includes a base salary of $1.27-million and an annual incentive plan bonus of $590,000.
"In 2014, we continued to invest strategically in new products in order to position us well for the future," Jean Monty, chairman of the company's human resources and compensation committee, said in a letter to shareholders that was part of the filing. "As significant investments in new products begin to taper off, our top priority will be to translate such investments into bottom line results."
Bombardier is betting its new C Series airliner, its largest ever plane, will drive revenue over the decade ahead as more airlines are drawn to the jet's operational advantages. The company has made significant progress in the jetliner's flight testing and in-flight performance data available to potential customers should translate into a new wave of orders for Bombardier that should push up its share price, RBC Capital Markets said in a March 25 note.
According to Mr. Monty's letter, Mr. Beaudoin, who ceded the CEO role to industry veteran Alain Bellemare, steered several key successes for Bombardier in 2014. These include testing progress for the C Series as well as strong revenue growth across both business units.
Still, some financial and non-financial targets set at the beginning of the year were not achieved, Mr. Monty noted. As a result, the payout to Mr. Beaudoin under the short-term incentive plan related to financial key performance indicators was 33.3 per cent of the target. Mr. Beaudoin's family controls Bombardier through super-voting shares.
The compensation committee decided to freeze the base salary of all employees in 2014, except for employees covered by formal collective agreements or subject to local statutory requirements, the document states.
Reeling from rising debt, a tanking share price and costs for the C Series program that have ballooned to $5.4-billion, Bombardier announced sweeping changes Feb.12 it hoped would help calm concerns over its future. In addition to changing CEOs and suspending its dividend, it has since raised $2.4-billion in new capital to help fund its plane programs.
Bombardier shares rose 2.3 per cent to $2.45 in trading Tuesday.
They've lost 42 per cent this year.