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Bombardier Showdown Looms as Investors Abandon a Family Scion

  • Chairman loses support after ‘lapse of governance’ on pay plan
  • Tensions rise with outside shareholders amid turnaround effort
A Bombardier CS300 C Series aircraft, manufactured by Bombardier Inc., performs a flying display on day two of the 51st International Paris Air Show in Paris, France, on Tuesday, June 16, 2015.
Photographer: Jasper Juinen/Bloomberg

Bombardier Inc.’s family owners are on a collision course with outside shareholders. In the middle is Executive Chairman Pierre Beaudoin, scion of the company’s founders.

An array of institutional investors is set to withhold support from Beaudoin in a Thursday proxy vote. Caisse de Depot et Placement du Quebec, the biggest outside shareholder and a crucial business partner, criticized Bombardier on Monday for a “lapse of governance” after the manufacturer raised executive compensation despite announcing plans to cut more than 14,000 jobs and relying on taxpayer support for a $6 billion jet program.