Description: In an intriguing display of public outrage, approximately 200 protestors gathered outside Bombardier headquarters in Montreal to decry the bonuses granted to company executives while taxpayers have been bailing out the company. With both the federal and provincial governments kicking in over a billion dollars, citizens were outraged that the company opened up the cash box for its management. In response, Bombardier announced they would defer the bonuses until 2020.
Date: April 2, 2017
1) Were you familiar with the government assistance to Bombardier? Do you agree with this as a wise use of taxpayers’ money?
2) If you were a senior executive at Bombardier, how would you have responded to this protest?
3) What does accounting theory teach us about structuring compensation for executives?