While nearly 12 400 employees of Bombardier in Quebec and Ontario are laid off until further notice and that the senior management of the company, waives his or her payroll during this period, the company has refused to say whether the ex-CEO Alain Bellemare will, for its part, the generous severance pay of at least $ 5.7 million (US$ 8.2 MILLION CDN) provided for in his contract.
The employees affected by this shutdown related to the COVID-19 are on leave without pay until the 26th of April at the earliest, announced the company yesterday morning.
The new chief executive officer, Eric Martel, as well as the members of the executive leadership team of Bombardier will not be paid during this period, has supported the company established in Montreal.
This will be the case also of the chairman of the board and of the members of the board of directors of Bombardier, who give up completely to their compensation for the remainder of the year 2020.
Bombardier also reduces “the whole of discretionary spending, continues to work towards the closing of the transactions previously announced, and will take additional steps to increase its liquidity,” said the chairman of the board of Bombardier, Pierre Beaudoin.
Exact amount unknown
What is Alain Bellemare, president and chief executive officer outgoing, thanked the 11th march last ?
It is not yet known the value of the compensation that it is supposed to touch the result of his departure.
But according to the financial documents of the company, if his departure had taken place on 31 December 2018, this golden parachute would have reached 5,67 million americans (or 8.2 million CA$).
The spokesperson of the company, Jessica McDonald, did not want to come forward.
“The details are not known for the moment. They should be found in the management proxy circular of the company, ” she said.
Bombardier has also withdrew its financial forecast for the year 2020 due to the crisis of the COVID-19, which plays with the economy.