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Power Corporation of Canada

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Power Corporation of Canada (French: Power Corporation du Canada) is a management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are insurance, retirement, wealth management and investment management, including a portfolio of alternative investment platforms.[4]

Power Corporation of Canada
Company typePublic
TSX: POW
IndustryConglomerate
Founded1925; 99 years ago (1925)[1]
FoundersArthur J. Nesbitt
Peter A. T. Thomson
HeadquartersMontreal, Quebec, Canada
Key people
ProductsFinancial services, insurance and wealth management
RevenueIncrease CA$64.61 billion (2020)[2]
Increase CA$1.99 billion (2020)[2]
AUMIncrease CA$260.4 billion (Q1 2023)[3]
Total assetsIncrease CA$629.10 billion (2020) [2]
Number of employees
30,000+ employees (2020)[2]
WebsitePowerCorporation.com

History

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Power Corporation of Canada was formed in 1925 by two stockbrokers – Arthur J. Nesbitt and his partner, Peter A.T. Thomson. Nesbitt served as the company's first president. Power Corporation was created as a holding company to manage their substantial investments in public utility companies involved in the electrical power industry in Quebec's Eastern Townships, plus in the other Canadian provinces of Ontario, Manitoba, New Brunswick and British Columbia. In the latter part of the 1930s, the company acquired a controlling interest in Bathurst Pulp and Paper Company Ltd., and in 1938, Canadian Oil Companies Ltd., selling the latter to Shell Oil Company in 1962.

In 1952, Arthur J. Nesbitt was succeeded as president by his son, Arthur Deane Nesbitt (1910–1978). The Nesbitt family sold most of its interest in Power Corporation to the Paul Desmarais group in 1968[5] and by 1970, no longer had any involvement.[when?]

In 1975, Power Corporation attempted a takeover of the Argus Corporation holding company which had substantial interests in brewing, food retailing, farm implements manufacturing, paper products and other businesses. The Argus owners rejected the takeover attempt and decided to retain their voting shares, while 50% of the non-voting shares were purchased by Power Corp.[6] In 1976, ten percent of the voting shares were sold by E. P. Taylor to Desmarais.[6] Argus was eventually sold in 1978 to a Conrad Black-controlled firm. In 1989, corporation began supporting the Imagine Canada program.[7]

While Power Corporation was originally established as an electric utility holding company, the company became a conglomerate with interests in the finance industry, as well as interests in other business sectors such as sustainable and renewable energy.[5] 1984 saw the creation of a management and holding company, Power Financial Corporation. Expansion for the group began in the 1970s, in Europe and followed in the 1990s, in Asia. The group's involvement in the finance sector continued in 2000, with the acquisition of Canada Life, Mackenzie Financial and Putnam Investments. Following the 2020 reorganization, Power Corporation owns 100% of Power Financial’s common shares.

In 2002, Power Corporation created the Sagard SAS fund, then Sagard Capital Partners, later named Sagard Holdings, in 2004, in the United States.[8] R. Jeffrey Orr was named Power Financial Corporation CEO in 2005.[8] By 2007, IGM Financial was the holding company for Power Corporation's investment fund companies.[5] Power Corporation also by 2009 had interests in the parent company of La Presse, Mackenzie Financial, London Life Insurance, Canada Life Assurance, Great-West Life, and Putnam Investments.[9]

The company reduced its number of board directors in 2008 from 21 to 12.[8] Power Corporation acquired a stake in China Asset Management in 2011, purchasing 10% from CITIC Securities Co.[10] Also that year, Power Corporation's new fund Sagard China was founded. Through a number of recent initiatives, in partnership with its subsidiaries Great-West Lifeco and IGM Financial, the Power Corporation group has been actively participating in the emerging fintech industry. This fintech strategy is achieved through Portag3 (which created Canada’s largest fintech investment fund),[11] Wealthsimple, Personal Capital and Diagram.

In connection with the reorganization, Paul Desmarais Jr. and André Desmarais retired as co-chief executive officers of Power Corporation after 24 years in the roles and continue to serve as chairman and deputy chairman, respectively, of Power Corporation's board of directors. R. Jeffrey Orr, president and chief executive officer of Power Financial, become president and chief executive officer of Power Corporation, effective February 13, 2020.[12][13][14][15]

Politics

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The corporation has been criticized for its influence on Canadian politics through its relationships with prominent politicians, including several prime ministers and provincial premiers.[5] Critics "occasionally charge that the family’s political connections give it unfair advantages," says the New York Times in 2007.[5] The company has been known to defend federalism in Quebec.

Paul Desmarais Jr., was one of thirty members of the North American Competitiveness Council, a group whose advice directed the policies of Security and Prosperity Partnership of North America (SPP).[citation needed]

Several former Canadian prime ministers have occupied a position on the management team or on the board of Power Corporation, of one of its group companies or of its international advisory council :

See also

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References

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  1. ^ "Federal Corporation Information". Corporations Canada. Retrieved 2018-09-30.
  2. ^ a b c d "Annual Report 2020" (PDF). Power Corporation of Canada.
  3. ^ "Assets under management and advisement". www.powercorporation.com.
  4. ^ "Power Corporation of Canada | Home".
  5. ^ a b c d e The name is Power and it fits, The New York Times, January 25, 2007.
  6. ^ a b Rohmer 1978, p. 338.
  7. ^ Imagine Canada
  8. ^ a b c History, Power Corporation
  9. ^ a b Caisse de dépôt president leaving to join Power Corp., CBC
  10. ^ Kiladze, Tim (11 August 2011), "Power Corp. buys into big China asset manager", The Globe and Mail
  11. ^ Silcoff, Sean (3 December 2019). "Portag3 Ventures, affiliate of Power Corp., creates Canada's largest fintech investment fund - The Globe and Mail". The Globe and Mail.
  12. ^ "Power Corporation and Power Financial Announce Reorganization, Simplified Corporate Structure and Refocused Strategy - Press Releases".
  13. ^ "Power Corporation and Power Financial Announce Completion of Reorganization and the Determination of the Final Offer Price for the Pre-Emptive Right - Press Releases".
  14. ^ "Power Financial shareholders vote in favour of reorganization plan". The Globe and Mail. 11 February 2020.
  15. ^ "Power Financial Corp. shareholders vote to approve reorganization plan". The Toronto Star. 11 February 2020.
  16. ^ a b A new guy and the Nervous Nellies, CBC
  17. ^ "The players behind the scenes", The Globe and Mail, 4 June 2002
  18. ^ "Power Corporation announces the retirement of Henri-Paul Rousseau - Press Releases".

Bibliography

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