Bombardier Inc.’s board of directors have approved the proposal to slash Pierre Beaudoin’s pay by $1.4 million. This pay reduction will bring his 2016 compensation to $3.8 million which is equal to his compensation for 2015.
The company has faced backlash as its executives’ pay rises came after the Bombardier announced two waves of layoffs in 2016 that total 14,500 people over two years at company locations around the world. The company’s top five executives and board chairman rose up to $32.7 million in 2016 and up to $21.9 million the year before.
The Canadian plane and train maker has received over $1 billion in federal and government aid since 2015. The top five executives and board chairman received raises of up to 50 percent for 2016. The pay increases had raised many protesters outside the company’s Montreal headquarters last week where the protestors demanded a freeze on executive compensation. The Canadian prime minister had also criticized the pay hikes for its senior executives.
Chief Executive Alain Bellemare has requested the payment total of over half the planned 2016 compensation for its six named executive officers until 2020. Bombardier stated that the deferred compensation will only be payable if the company achieves its performances goals that set it up for long-term success.