Bombardier under fire for $32.6M US given to executives while taking government cash

Bombardier is being slammed for its "sense of entitlement" after awarding $32.6 million US to senior executives even as it laid off thousands of workers and sought government aid.

The payout represents an increase of nearly 50 per cent for its top five executives and board chairman,compared with 2015.

"At the very least, it demonstrates a rather incredible sense of entitlement, doesn't it?,"said DavidBaskin, president atBaskinWealth Management, a Bay Streetinvestment management firm.

"Here'sa company thatbasicallywent begging to the province and the federalgovernmentfor money, saying that if you don't give us all this money, we're going to lay off all these workers."

• Bombardier defends pay structure after public outcry over executive pay increases
• Bombardier's senior execs saw pay rise by nearly 50%

The federal government issued a $372.5-millionloan last month for theCSeriesand Global 7000 programs,while the province recently poured$1 billion US into theCSeriesprogram in exchange for a 49.5 per cent stake.

The province's pension fund manager, the Caisse de dpt,also bought a 30 per cent stake in the company's railway division for$1.5 billion US.

On Thursday, Prime Minister JustinTrudeaustood by hisgovernment's decision to put money into Bombardier.

"Investing in Bombardier is a way of ensuring goodlong-termjobs in theaerospace industry right across the country," he saidat anannouncement at aFord engine plant in Windsor, Ont.

'Lack of judgment'

Baskin told CBC Montreal's Daybreak that, if he was the federal civil servant who negotiated the terms of the agreement with Bombardier, he would have said, "'Please don'tembarrassus by raising your pay by 50 per cent after giving you all this money.' But Iguess nobody thought of that."

Last year, CEO AlainBellemaregot paid $9.5 million US,up from $6.4 million US a year earlier. His annual bonus almost doubled to $2.36 million US.

The chief financial officer and heads of business and commercial aircraft, meanwhile, each received more than $4 million US, while the head of the railway division's compensation increased 93 per cent to $4.7 million US.

Bombardier has announced job cutstotalling14,500 positions worldwide over the last two years as it tries to regain its financial footing.

The company cut its loss to $981 million US last year, down from $5.34 billion US in 2015 despite lower revenues.

MichelNadeau, the head of Quebec'sInstitutefor Governance of Private and Public Organizations, is also harshly critical of Bombardier. He went even further than Baskin,sayingthe executives'salary increases areunacceptable and should be reversed.

"I think the Quebec premier and the president of theCaisse de dpt should call Bombardier and say, 'You should cancel these salary increases.' I think it's a lack of judgment from the board of directors," Nadeautold CBC.

Bombardier declined a request for an interview, but said in a statement the executive compensation is consistent with what's seen at other companies.

Trudeau, Couillard defendinvestments

On Thursday, Quebec Premier Philippe Couillardtried to deflect questions about the payout, saying the company and its shareholders are ultimately the ones affected.

He said theprovince's investment is protected because it's directedspecifically towardthe CSeries jet.

"This is an example that really says to the public and taxpayers, essentially, why we needed to focus and segment our focus on CSeries," he said.

"The opposition asked us why we didn't invest in thecompany [as a whole]. You have the answer this morning."

Trudeauadded that the federal government respects"the free market and the choices companies make, but we also have a responsibility to ensure the investments we make will lead to good jobs and growth."