Newspaper article The Canadian Press

Bombardier Executive Stock Plan under the Microscope by Securities Regulator

Newspaper article The Canadian Press

Bombardier Executive Stock Plan under the Microscope by Securities Regulator

Article excerpt

Bombardier exec stock plan under scrutiny

--

BOSTON - Quebec's financial market regulator is reviewing Bombardier Inc.'s executive compensation plan, calling on the plane-and-train maker to suspend all related trades just hours after Quebec's premier expressed lukewarm hopes about the future of the beleaguered company's commercial aerospace operations.

The Autorite des marches financiers announced Thursday afternoon it is looking into how Bombardier implemented its Automatic Stock Disposition Plan, rolled out last August.

The Montreal-based company said then that the plan allows some of its senior executives to sell their vested shares as an added incentive in performance-based compensation, so long as the trades are made by independent securities brokers and in line with "trading parameters."

Under Canadian securities laws and Bombardier's trading policies, senior executives face limits on their ability to sell shares in the company. The plan allows trades to be made in accordance with pre-arranged instructions given when the employee doesn't have any material undisclosed information, the company said in August.

Bombardier said Thursday it will fully co-operate with the AMF review, and agreed to suspend all sales of shares until further notice.

The company noted that the ASDP plan was reviewed by the regulator before it was put in place.

Hours earlier, Premier Francois Legault expressed scant hope for Bombardier's CRJ series unless it finds a partner after the company agreed to sell its Q400 turboprop program to focus on its business jet and railway businesses.

Legault said the regional jet program could preserve the 1,000 or so jobs currently in Mirabel, Que., if the manufacturer can enter into a partnership rather than rely on public support.

"I do not think it's a question of government assistance in the case of the CRJ," Legault said Thursday at a press briefing to wrap up his two-day economic mission to Boston. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.