Shareholders Would Not Be Objecting To Bombardier Inc.'s (TSE:BBD.B) CEO Compensation And Here's Why

Key Insights

• Bombardier to hold its Annual General Meeting on 1st of May
• Salary of US$903.0k is part of CEO Éric Martel's total remuneration
• The total compensation is similar to the average for the industry
• Bombardier's total shareholder return over the past three years was 182% while its EPS grew by 81% over the past three years

We've discovered 4 warning signs about Bombardier. View them for free.

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. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 1st of May. 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. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Bombardier

How Does Total Compensation For Éric Martel Compare With Other Companies In The Industry?

According to our data, Bombardier Inc. has a market capitalization of CA$8.3b, and paid its CEO total annual compensation worth US$7.5m over the year to December 2024. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$903k.

In comparison with other companies in the Canadian Aerospace & Defense industry with market capitalizations ranging from CA$5.6b to CA$17b, the reported median CEO total compensation was US$7.6m. So it looks like Bombardier compensates Éric Martel in line with the median for the industry. Furthermore, Éric Martel directly owns CA$17m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$903k	US$884k	12%
Other	US$6.6m	US$5.6m	88%
Total Compensation	US$7.5m	US$6.5m	100%

Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. Bombardier pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Bombardier Inc.'s Growth Numbers

Bombardier Inc.'s earnings per share (EPS) grew 81% per year over the last three years. Its revenue is up 7.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

Most shareholders would probably be pleased with Bombardier Inc. for providing a total return of 182% over three years. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Bombardier you should be aware of, and 2 of them are a bit unpleasant.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.