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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRXF | BDRAF | BDRBF | T.BBD.B | T.BBD.PR.B | T.BBD.PR.C | T.BBD.PR.D | BDRPF | BOMBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Bullboard Posts
Comment by jammerhon Aug 26, 2010 10:37am
421 Views
Post# 17385603

Pierre's Experience - Jammerh

Pierre's Experience - Jammerh"What is upsetting is his selling of shares in the $3 range - what was that for?"

It's pretty much par for the course. Many executives are paid stock options as an incentive to attract goog people. Bombardier has to compete with other companies in the industry doing the same things.

I don't see it as a big problem. If you do it's a relatively simple thing to look for companies where the incentives aren't quite so generous. Of course, you then run into greater risk that those companies may not be competitive in attracting the best managers.

Executives who continually receive stock options as an incentive are generally advised to diversify out of the company they work for by selling those shares on an ongoing basis. The rationale being that they already have a lot tied up in their employer.

Yes, it creates a continual drain on the share price, but it is pretty much standard practice, and the amounts are really very small in comparison to the overall profits of the company.

So, it seems pretty clear to me. It's pretty much the norm in North American business culture. There are still some companies which don't do this, and if it is important to you, you probably should invest elsewhere.

At the same time, this isn't anything new. You should have known about this practice when you originally decided to purchase your Bombardier shares - assuming you did your homework thoroughly. So, why all the consternation now?

I mention the Embraer 190/195 since that is the aircraft which Bombardier itself has publically indicated CSeries is designed to to target.

Bullboard Posts