Pressure had mounted ahead of Pierre Beaudoin's re-election
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(Reuters) — Canadian plane and train maker Bombardier said executive chairman Pierre Beaudoin would step down, following shareholder outcry over controversial executive pay hikes, and reported a smaller-than-expected adjusted net loss.
Beaudoin — a former chief executive and a scion of Bombardier's founding family, which controls the company through its dual-class share structure — will continue to serve as non-executive chairman.
The Canada Pension Plan Investment Board, the country's largest pension fund manager, withheld its vote for the re-election of Beaudoin at Bombardier's annual meeting on Thursday.
The Ontario Teachers' Pension Plan also withheld its vote on his re-election on Tuesday, echoing similar moves by Quebec and British Columbia funds.
Beaudoin agreed to forgo the pay hike and other executives agreed to defer.
Strength in the company's train-making unit helped the company report a smaller-than-expected adjusted net loss.
Adjusted earnings before interest and taxes in the company's transportation, or rail, business jumped to $134 million in the first quarter from $23 million, a year earlier.
The company's order intake in the business rose 83.3 per cent to $2.2 billion in the three months ended March 31.
Adjusted net loss attributable to Bombardier shareholders was $1 million, smaller than analysts' estimate for a loss of $22.8 million, according to Thomson Reuters I/B/E/S.
On a per share adjusted basis, the company broke even. Analysts on average had estimated a one cent loss.
Montreal-headquartered Bombardier reported an 8.6 per cent fall in revenue to $3.58 billion, missing estimates of $3.84 billion.
