- Plan permits sales of vested shares earned by certain senior executives in accordance with predetermined instructions
- Plan reinforces the incentive effect of performance-based compensation by allowing for the sale of shares on the open market over a period of up to two years at prevailing market prices, regardless of any subsequent material non-public information participants may receive
- Plan participants must satisfy Bombardier’s minimum stock ownership guidelines for senior executives
MONTRÉAL – BUSINESS – Bombardier announced today that it has established an automatic securities disposition plan (“ASDP”) in accordance with applicable Canadian provincial securities legislation. The ASDP allows for the exercise and sale of vested securities earned by certain senior executives of Bombardier as part of their overall performance-based compensation.
Under Canadian securities laws and the Company’s trading policies, senior executives of Bombardier are subject to limits on their ability to sell shares in the Company. The ASDP addresses this issue by permitting trades to be made in accordance with pre-arranged instructions given when participants are not in possession of any material undisclosed information.
Sales of shares under the ASDP will be affected by an independent securities broker in accordance with the trading parameters, price and volume limits and other instructions set out by participants in the ASDP. Participants will not exercise any further discretion or influence over how dispositions will occur and are subject to restrictions on their ability to modify, suspend or terminate their participation in the ASDP. In accordance with best practices, the ASDP also includes a waiting period of 30 days from the date of adoption for the first dispositions under the plan.
The ASDP plan reflects sound corporate governance and compensation policy. It allows for the realization of earned long-term incentive compensation in an organized manner and avoids concerns about initiating transactions while in possession of material non-public information.
Senior executives subject to Bombardier’s minimum stock ownership guidelines may only sell shares through the ASDP in excess of the required ownership threshold applicable to them, ensuring further alignment of the financial interest of company’s executives and its shareholders.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction. This press release does not constitute an offer to sell or the solicitation to buy securities in the United States. The securities mentioned herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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