Bombardier Inc. T.BBD.PR.B

Buybacks vs LTD repayment or a teeny tiny dividend

[Letsmakemoredol]

anyone really care about buybacks when most of the shares are then given to executives at an ~80% discount? Might as well just cut a check direct to the executives. For the few shares that are cancelled, is the long term debt not more important to deal with? Even a teeny tiny dividend is more important IMO.

[Nordico]

You know they need to, and are going to do those buybacks regardless - would you rather they do them now in the low-mid $90s, or $100+? Also they bought back something like 450k shares in last year's program for executive compensation purposes. This year's (April to April '25) buyback program is for up to 1.75 million shares, of which I think they'll buy back a bit over 1 million

[Letsmakemoredol]

Nordico, why do they need to?  Just cut a check to the executives for fair market value and be done with it. So you are saying buybacks and canceling shares are a bigger issue than paying back the long term debt?  With BBD's debt and negative equity?

[Nordico]

No point in me debating the reasoning of executive share-based compensation; that's just the standard practice in North America, so doesn't matter whether I support it or not. I'm saying a company should prioritize defending shareprice when shorts bring a valuation down to unreasonable levels (and may push it further if a company doesn't do buybacks), over spending that specific

[Letsmakemoredol]

since it appears that 99% of executives immediately sell their shares, it would make it easier just to give them the cash in lieu, no difference from a tax perspective. I have zero issues with them receiving compensation, either in shares or in cash.   I think every dime, outside of executive compensation should be used to pay back debt or give shareholders a teeny tiny dividend

[BBDB859]

I beg to differ Lets. I think a small dividend is useless. I think that Nordico's point, and even mine, on buybacks, which discussion started 2 years ago on this board is a better idea. To do buybacks is also a way to keep some of these shorts honest, and if they can cancel some shares along the way, then that's even a bonus. Your idea about paying off Long term debt is good. No one here

[Letsmakemoredol]

859, my point is there are much bigger priorities than buyback for cancelation.  All that money should be going on LTD and I hope you agree.  Fine, skip my 2nd idea for a microscopic dividend, let's get rid of the negative equity! Also if you weren't aware naked shorting is 100% legal in Canada, they don't need shares to short.

[BBDB859]

Lets Naked shorting is the problem, and that's why having a small buyback program keeps the share price up, and scares a few of these players off. The Market Makers are smart, and control the SP if they are active in the Market. Remember that the MM's work at keeping the SP up, so that management can get a higher SP for their compensation when they sell in the open market. Just saying, we

[Letsmakemoredol]

859, it doesn't keep the share price up with 99% of the shares given to executives are immediately sold back into the market.  Tell me how buying shares one month and then the next month or so selling them keeps the price up? you are also saying buying shares for cancellation is more important than paying off the LTD?

[BBDB859]

Lets. I'm not saying that buying shares for Cancellation is better than paying off LTD. Tell me where you got that? All I am saying is that it makes sense to use the share buyback program with the compensation process, because they are already paying compensation to the executives. Why not use that compensation money to control some of the SP by using the Market Makers (or who ever they use),

[Letsmakemoredol]

859, fair on the comment on buying shares for share cancellation, but to me there are only 2 logical things to do with the extra money.  Either put the money on LTD which to me is the smartest thing given BBD's negative equity (and I think is driving/keeping some investors away IMO) or buying back shares for cancellation.  Any other ideas?  To me its LTD by a long shot. Sure

[Shamhorish]

off course  put the money on LTD must be a priority who decide to give all those bonuses to exectives, it is the exec. them selves if exec, prefer paying themselve than paying LTD then they are part of the market scavengers theater,,,,,\ as if it is not enough the saralies they are getting  bbd ececs. are paid in multi million per year, still not enough, they need bonus, they can

[Letsmakemoredol]

Sham, no one at BBD gets paid "multi millions per year"  Eric Martel's salary last year was $883,500 and I have no problem paying bonus/shares to give them an incentive to perform

[Shamhorish]

Mar 27, 2024 · Le grand patron de Bombardier a touch une rmunration de 6,5 millions en 2023, La rmunration du PDG de Bombardier grimpe de 1 million $ ric Martel a gagn 8,66 millions $ en 2022 https://www.journaldequebec.com/2023/03/24/la-remuneration-du-pdg-de-bombardier-grimpe-de-1-million

[BBDB859]

Hey Lets. One more time to you question. " Why not just write a check?" Because it's way smarter to use the compensation money, which they were going to pay anyway to their management, and bolster the price of the stock. 2 Birds with 1 stone. Can you picture a buyer out there (Bombardier) buying shares out in the open market to bolster the SP, to the tune of around $100M

[Letsmakemoredol]

859, agreed it boosts the SP when BBD buys, and its the exact opposite when execs flood the market with ~300,000 share in one month Have you looked at my table provided? most immediately sell their shares usually the same day

[Nordico]

Fyi you're looking at stock option exercising (which results in receiving the underlying shares); they of course then sell the shares immediately as that's why they exercised the options. They would have received the stock options as compensation several months prior though.