Bombardier (BBDb.TO) faced fresh pension fund opposition to the re-election of its executive chairman and the Quebec government said the plane and train maker should listen to the growing number of institutional shareholders citing governance concerns.

The Canada Pension Plan Investment Board (CPPIB), the country’s largest pension fund manager, withheld its vote for the re-election of Pierre Beaudoin at Bombardier’s annual meeting on Thursday.

The Ontario Teachers Pension Plan (OTPP) also withheld its vote on his re-election on Tuesday, echoing similar moves by Quebec and British Columbia funds.

“Our assessment of recent events confirms the need for independent board leadership,” the OTTP, which does not disclose its position, said on its website.

Beaudoin, a former chief executive, is a scion of Bombardier’s founding family, which controls the company through its dual-class share structure. The shareholders’ decision follows a recent outcry over controversial executive pay hikes at Bombardier, which Beaudoin later agreed to forgo and other executives agreed to defer.

Beaudoin is expected to stay on this week despite the opposition, two company sources said. The family’s controlling stake means the pension funds’ moves are largely symbolic.

Full Content: Reuters

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