BRP executives saw their total compensation jump to $ 20.8 million in 2018, the last full year in which Laurent Beaudoin chaired the Recreational Vehicle Builder’s Board of Directors.
The son-in-law of Joseph-Armand Bombardier will not seek a new mandate at the annual meeting scheduled for May 30 in Valcourt and will give way to José Boisjoli, who will serve as Chairman of the Board and Chief Executive Officer.
On the verge of celebrating his 81st birthday, Mr. Beaudoin, who had chaired BRP’s board since December 2003, when the Bombardier Recreation Division was spin-off, will be named President Emeritus.
“The time has come to leave my present job,” the businessman said on Tuesday. I will, however, remain a mentor and advisor to the management team. ”
Mr. Beaudoin, who has been at the heart of the company’s growth since its inception in 1963, also stepped down on Bombardier’s board of directors last year.
At present, BRP has more than 12,500 employees worldwide and generates annual sales of $ 5.2 billion by selling its products in more than 120 countries.
Although he no longer chairs the Board of Directors, Mr. Beaudoin will continue to have a say in BRP, since Beaudier Holding, which he controls, holds close to $ 16.8 million. shares with multiple voting rights, representing 27.4% of the total voting rights of the company.
In addition, a holding company owned by the Bombardier family also controls 18.3% of the voting rights.
By email, the company explained that Mr. Boisjoli, 61, who has been with the company since 1989, was selected by the board of directors because of his “comprehensive knowledge of the industry”.
However, the choice of the multinational established in Valcourt surprised observers who specialize in corporate governance, who believe that we should have opted for another candidate.
“The board’s function is to supervise executives, including the president and chief executive officer,” Michel Nadeau, director general of the Institute for Governance of Private and Public Organizations (IGOPP), told AFP a telephone interview. It is desirable that the chair of the board is not a manager. It’s strange. ”
By email, the governance expert and professor at Concordia University Michel Magnan also expressed his surprise, pointing out that in Canada, it was less and less common that the functions of President and Chief Executive Officer and President of the board of directors are occupied by the same person.
As for the total remuneration, the amount of 20.8 million includes a sum of approximately 5.5 million to which Bertrand Thiébaut was entitled, even if he was less than 10 months at the head of the division motorized sports.
In 2017, the emoluments of BRP senior executives were $ 13.2 million. Excluding Mr. Thiébaut’s salary, the employers’ overall salary would have been 15.3 million.
For 2018, BRP achieved normalized earnings – which excludes non-recurring items – of $ 308.6 million, or $ 3.10 per share, up 25.7% from the previous fiscal year.
Mr. Boisjoli’s total compensation, which includes base salary, bonuses and other benefits, was $ 8.8 million last year, up 12% from 2017. His base salary was $ 1.07 million, while its annual premium jumped 26.3% to $ 2.4 million.
In addition, the value of the grants on options granted to Mr. Boisjoli was approximately 4.5 million, compared to 4.2 million in 2017.
Since he is a non-independent director, the latter will not be entitled to additional remuneration even though he will chair the board of directors at the end of the annual meeting.
Global Compensation for Senior Executives at BRP:
– José Boisjoli, President and Chief Executive Officer: 8.8 million (+ 12%)
– Sébastien Martel, Chief Financial Officer: 1.9 million (+ 15.7%)
– Sandy Scullion, Vice President, Marketing and Global Services – Motorsports: 1.9 million (+ 34%)
– Denys Lapointe, Senior Vice President, Design, Innovation and Creative Services: 1.5 million (+ 17%)
– Martin Langelier, Senior Vice President, Legal Services and Public Affairs: $ 1.2 million (+ 22%)
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