CEO's Departure Heralds Shake-Up Of Transportation Giant

Paul Tellier (right) is out as president and CEO and a new troika will run Bombardier, according to Canadian news reports. The stunning announcement came Monday, triggering a sell-off of Bombardier stock, which reached a new one-year low within the first 45 minutes of the opening bell on the TSX.

Bombardier's future now lies in the hands of three people who will divide Tellier's duties as company leader. At the head of that group is Laurent Beaudoin. His son, Pierre, and Andre Navarri (president of Bombardier Transportation) will hold the other two seats.

Although Bombardier has suffered some setbacks over the past year, the company gave no indication that Tellier had been ousted. Instead, he released a statement saying he was planning to leave at the end of the year anyway.

"I understand the board's concern that I would not be there for the long term to develop and execute strategies, and the need to reshape the management structure at this time," the statement said, as quoted by the Canadian Broadcasting Corporation (CBC).

In fact, the whole thing appears, at first glance, to be quite civil. "The corporation hired Mr. Tellier as an agent of change and he has delivered" Laurent Beaudoin told the CBC. "Considering the evolution of the business and our challenges at this point, the corporation has come to an agreement with Mr. Tellier and I am pleased that we are parting ways on good terms."

FMI: www.bombardier.com