MONTREAL – Former Bombardier CEO Pierre Beaudoin took a large pay cut last year as the transportation giant struggled to develop new aircraft and swung to a loss.
The 52-year-old grandson of the company founder, who stepped down in February to become executive chairman, received US$5.16 million in total compensation, down from $6 million a year earlier, according to a regulatory filing on Tuesday.
The decrease was partly due to a smaller bonus for missing earning targets and a drop in the Canadian dollar which reduced Beaudoin’s pay when expressed in U.S. dollars.
Excluding pension and other compensation, Beaudoin’s direct compensation was 12 per cent lower at US$5.07 million.
Like all Bombardier non-union employees, Beaudoin’s salary was frozen in 2014. However, it decreased in U.S. dollars to $1.27 million from $1.36 million in 2013 due to the drop in the loonie.
His annual bonus was cut by 36 per cent to US$590,700 as he only met one-third of the financial targets set out for him and failed to achieve his objective for an unidentified value-added project.
Beaudoin’s share-based awards decreased to US$2.15 million from US$2.34 million and option-based awards were US$1.07 million, compared to US$1.17 million. Beaudoin’s pension value was negative $70,200 compared to $83,700 in 2013 and other compensation rose to $148,400 from $128,500.
Bombardier swung to a US$1.25 billion net loss last year from a US$572 million profit in 2013. Revenues increased 10.4 per cent to US$20.1 billion.
The company took a US$1.4 billion charge in the fourth quarter related to a pause of its Learjet 85 program. It also suspended dividend payments and moved to add to its cash reserves by raising $1.1 billion from issuing the shares and US$2.25 billion in new debt.
Despite being CEO, Beaudoin wasn’t the highest paid Bombardier employee last year.
Transportation CEO Lutz Bertling earned US$5.5 million in 2014, up from US$5.2 million after joining the company in June 2013. Bertling is entitled to a one million euro signing bonus, half of which was paid last year.
Compensation for new Bombardier CEO Alain Bellemare and any parting package for Beaudoin will be included in next year’s proxy circular.