Bombardier Inc.'s (TSE:BBD.B) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Bombardier will host its Annual General Meeting on 25th of April
• Salary of US$883.5k is part of CEO Éric Martel's total remuneration
• Total compensation is similar to the industry average
• Bombardier's EPS grew by 94% over the past three years while total shareholder return over the past three years was 152%

We have been pretty impressed with the performance at Bombardier Inc. (TSE:BBD.B) recently and CEO Éric Martel deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 25th of April. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Bombardier

Comparing Bombardier Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Bombardier Inc. has a market capitalization of CA$5.5b, and reported total annual CEO compensation of US$6.5m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$884k.

In comparison with other companies in the Canadian Aerospace & Defense industry with market capitalizations ranging from CA$2.8b to CA$8.8b, the reported median CEO total compensation was US$6.7m. From this we gather that Éric Martel is paid around the median for CEOs in the industry. Furthermore, Éric Martel directly owns CA$7.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$884k	US$884k	14%
Other	US$5.6m	US$5.8m	86%
Total Compensation	US$6.5m	US$6.7m	100%

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Bombardier pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Bombardier Inc.'s Growth

Bombardier Inc. has seen its earnings per share (EPS) increase by 94% a year over the past three years. It achieved revenue growth of 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Bombardier Inc. Been A Good Investment?

Boasting a total shareholder return of 152% over three years, Bombardier Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in Bombardier we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.