Wikipedia

Power Corporation of Canada

Power Corporation of Canada(French:Power Corporation du Canada) is a management andholding companythat focuses onfinancial servicesinNorth America,EuropeandAsia.Its core holdings are insurance, retirement,wealth managementand 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,insuranceandwealth management
RevenueIncreaseCA$64.61 billion (2020)[2]
IncreaseCA$1.99 billion (2020)[2]
AUMIncreaseCA$260.4billion(Q1 2023)[3]
Total assetsIncreaseCA$629.10 billion (2020)[2]
Number of employees
30,000+ employees (2020)[2]
WebsitePowerCorporation

History

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Power Corporation of Canada was formed in 1925 by twostockbrokers–Arthur J. Nesbittand his partner, Peter A.T. Thomson. Nesbitt served as the company's first president. Power Corporation was created as aholding companyto manage their substantial investments inpublic utilitycompanies involved in theelectrical power industryin Quebec'sEastern Townships,plus in the other Canadian provinces ofOntario,Manitoba,New BrunswickandBritish Columbia.In the latter part of the 1930s, the company acquired a controlling interest inBathurst Pulp and Paper Company Ltd.,and in 1938,Canadian Oil Companies Ltd.,selling the latter toShell Oil Companyin 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 thePaul Desmaraisgroup in 1968[5]and by 1970, no longer had any involvement.[when?]

In 1975, Power Corporation attempted a takeover of theArgus Corporationholding 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 byE. P. Taylorto Desmarais.[6]Argus was eventually sold in 1978 to aConrad 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 ofCanada Life,Mackenzie FinancialandPutnam 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 ofLa Presse,Mackenzie Financial,London Life Insurance,Canada Life Assurance,Great-West Life,andPutnam Investments.[9]

The company reduced its number of board directors in 2008 from 21 to 12.[8]Power Corporation acquired a stake inChina Asset Managementin 2011, purchasing 10% fromCITIC SecuritiesCo.[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 emergingfintechindustry. 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 theNew York Timesin 2007.[5]The company has been known to defendfederalism in Quebec.

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

Several formerCanadian prime ministershave 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.Retrieved2018-09-30.
  2. ^abcd"Annual Report 2020"(PDF).Power Corporation of Canada.
  3. ^"Assets under management and advisement".powercorporation.
  4. ^"Power Corporation of Canada | Home".
  5. ^abcdeThe name is Power and it fits,The New York Times,January 25, 2007.
  6. ^abRohmer 1978,p. 338.
  7. ^Imagine Canada
  8. ^abcHistory,Power Corporation
  9. ^abCaisse 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. ^abA 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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