Bombardier Establishes Automatic Securities Disposition Plan

Bombardier Establishes Automatic Securities Disposition Plan

Bombardier Establishes Automatic Securities Disposition Plan

The FINANCIAL -- Bombardier announced  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 effected 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.