View source for Power Corporation of Canada

{{Short description|Canadian conglomerate company}}
{{Undisclosed paid|date=February 2021}}
{{Infobox company
| name = Power Corporation of Canada
| logo = Power-Corporation-of-Canada-Logo.svg
| type = [[Public company|Public]]
| traded_as = {{tsx|POW}}
| location = [[Montreal]], [[Quebec]]
| founded = {{start date|1925|4|18|df=y}}
| founders = [[Arthur James Nesbitt|Arthur J. Nesbitt]]<br />Peter A. T. Thomson
| industry = [[Conglomerate (company)|Conglomerate]]
| products = [[Financial services]], [[insurance]] and [[wealth management]]
| revenue = {{increase}} [[CA$]]64.61 billion (2020)<ref name="Annual Report 2020">{{Cite web |title=Annual Report 2020 |url=https://www.powercorporation.com/media/uploads/reports/annual/pcc-ar-2020-en.pdf |publisher=Power Corporation of Canada}}</ref>
| aum = {{gain}} [[CA$]]260.4 billion {{small|(Q1 2023)}}<ref>{{cite web|url=https://www.powercorporation.com/en/investors/highlights|title=Assets under management and advisement|website=www.powercorporation.com}}</ref>
| assets = {{increase}} [[CA$]]629.10 billion (2020) <ref name="Annual Report 2020" />
| net_income = {{increase}} [[CA$]]1.99 billion (2020)<ref name="Annual Report 2020" />
| num_employees = 30,000+ employees (2020)<ref name="Annual Report 2020" />
| subsid = [[Power Financial]]
| homepage = [http://www.powercorporation.com PowerCorporation.com]
}}
'''Power Corporation of 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.<ref>{{Cite web|url=https://www.powercorporation.com/en/|title=Power Corporation of Canada &#124; Home}}</ref>

==History==
Power Corporation of Canada was formed in 1925 by two [[stockbroker]]s – [[Arthur James Nesbitt|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 Power and Paper Company|Bathurst Pulp and Paper Company Ltd.]], and in 1938, [[Canadian Oil Companies|Canadian Oil Companies Ltd.]], selling the latter to [[Royal Dutch Shell|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<ref name="www.nytimes.com" /> and by 1970, no longer had any involvement.{{when|date=May 2018}}

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.{{sfn|Rohmer|1978|p=338}} In 1976, ten percent of the voting shares were sold by [[E. P. Taylor]] to Desmarais.{{sfn|Rohmer|1978|p=338}} Argus was eventually sold in 1978 to a [[Conrad Black]]-controlled firm.
In 1989, corporation began supporting the Imagine Canada program.<ref name="Imagine Canada">[https://www.imaginecanada.ca/en Imagine Canada]</ref>

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.<ref name="www.nytimes.com">[https://www.nytimes.com/2007/01/26/business/26fund.html The name is Power and it fits], [[The New York Times]], January 25, 2007.</ref> 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.<ref name="www.powercorporationhistory.com">{{Citation |title=History |url=http://www.powercorporationhistory.com/en/2001-present/ |publisher=Power Corporation}}</ref> R. Jeffrey Orr was named Power Financial Corporation CEO in 2005.<ref name="www.powercorporationhistory.com" /> By 2007, IGM Financial was the holding company for Power Corporation's investment fund companies.<ref name="www.nytimes.com" /> Power Corporation also by 2009 had interests in the parent company of ''[[La Presse (Canadian newspaper)|La Presse]]'', [[Mackenzie Financial]], [[London Life Insurance]], [[Canada Life Assurance]], [[Great-West Life]], and [[Putnam Investments]].<ref name="www.cbc.com/news/caisse"/>

The company reduced its number of board directors in 2008 from 21 to 12.<ref name="www.powercorporationhistory.com" /> Power Corporation acquired a stake in [[China Asset Management]] in 2011, purchasing 10% from [[CITIC Securities]] Co.<ref name="www.globeandmail.com">{{Citation |title=Power Corp. buys into big China asset manager |url=https://www.theglobeandmail.com/report-on-business/streetwise/power-corp-buys-into-big-china-asset-manager/article616570/ |newspaper=[[The Globe and Mail]]|date=11 August 2011 |last1=Kiladze |first1=Tim }}</ref> 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 [[financial technology|fintech]] industry. This fintech strategy is achieved through Portag3 (which created Canada’s largest fintech investment fund),<ref>{{cite news| url = https://www.theglobeandmail.com/business/article-portag3-ventures-affiliate-of-power-corp-creates-canadas-largest/| title = Portag3 Ventures, affiliate of Power Corp., creates Canada's largest fintech investment fund - The Globe and Mail| website = [[The Globe and Mail]]| date = 3 December 2019| last1 = Silcoff| first1 = Sean}} </ref> 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.<ref>{{Cite web|url=https://www.powerfinancial.com/en/news/press-releases/2019/power-corporation-and-power-financial-announce-reorganization-simplified-corporate-structure-and-refocused-strategy-122595/|title = Power Corporation and Power Financial Announce Reorganization, Simplified Corporate Structure and Refocused Strategy - Press Releases}}</ref><ref>{{Cite web|url=https://www.powerfinancial.com/en/news/press-releases/2020/power-corporation-and-power-financial-announce-completion-of-reorganization-and-the-determination-of-the-final-offer-price-for-the-pre-emptive-right-122598/|title = Power Corporation and Power Financial Announce Completion of Reorganization and the Determination of the Final Offer Price for the Pre-Emptive Right - Press Releases}}</ref><ref>{{Cite news|title=Power Financial shareholders vote in favour of reorganization plan|url=https://www.theglobeandmail.com/business/article-power-financial-shareholders-vote-in-favour-of-reorganization-plan/|website=The Globe and Mail|date=11 February 2020}}</ref><ref>{{Cite news|title=Power Financial Corp. shareholders vote to approve reorganization plan|url=https://www.thestar.com/business/2020/02/11/power-financial-corp-shareholders-vote-to-approve-reorganization-plan.html|website=The Toronto Star|date=11 February 2020}}</ref>

==Politics==
The corporation has been criticized for its influence on Canadian politics through its relationships with prominent politicians, including several prime ministers and provincial premiers.<ref name="www.nytimes.com" /> Critics "occasionally charge that the family’s political connections give it unfair advantages," says the ''[[New York Times]]'' in 2007.<ref name="www.nytimes.com" /> 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|date=January 2022}}

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 :

* Former [[Prime Minister of Canada]] [[Paul Martin]] was hired in the 1960s to work for [[Paul Desmarais Sr.]] by [[Maurice Strong]]. Martin became president of [[Canada Steamship Lines]], a subsidiary of Power Corp., and in 1981, Desmarais sold the company to Martin and a partner. Martin went on to make his personal fortune as an owner of CSL.
* Former prime minister of Canada [[Jean Chrétien]] sat on the board of Power Corp. subsidiary Consolidated Bathurst in the late 1980s, before he became the leader of the [[Liberal Party of Canada]]. Chrétien's daughter [[France Chrétien|France]] is married to the son of [[Paul Desmarais]], [[André Desmarais|André]].
* Chrétien's long-time aide<ref name="www.cbc.com/ignatieff" /> and chief policy advisor [[Eddie Goldenberg]] also worked in the past for Power Corp. [[John A. Rae|John Rae]], strategist for Chretien, served as Power Corp.'s executive vice president.<ref name="www.theglobeandmail.com">{{Citation |title=The players behind the scenes |url=https://www.theglobeandmail.com/news/national/the-players-behind-the-scenes/article4135950/ |newspaper=[[The Globe and Mail]]|date=4 June 2002 }}</ref> His is the brother of former interim [[Liberal Party of Canada]] Leader [[Bob Rae]].<ref name="www.cbc.com/ignatieff">{{Citation |title=A new guy and the Nervous Nellies |url=https://www.cbc.ca/news/canada/ignatieff-s-new-guy-and-the-nervous-nellies-1.843505 |publisher=[[Canadian Broadcasting Corporation|CBC]]}}</ref>
* Former prime minister of Canada [[Pierre Trudeau]] served in the mid-1990s, on Power Corp.'s international advisory board. Trudeau's assistant [[Edward Johnson (lawyer)|Ted Johnson]] also worked for Power Corp. During the Trudeau administration, [[Michael Pitfield]] held a variety of positions in government, but during his time in the private sector, he was at one time a vice-chairman of Power Corp.
* Former prime minister of Canada [[Brian Mulroney]] also has a relationship with Power Corporation. Mulroney's friend [[Ian MacDonald (politician)|Ian MacDonald]] described Desmarais as "Mulroney's mentor in the business world", and it is believed that Mulroney has done legal work for Power Corp. since the end of his term as prime minister. Additionally, former Mulroney Minister of Transport [[Don Mazankowski]] served as Power Corp.'s company director.
* Former premiers of Ontario [[Bill Davis]] and [[John Robarts]] of the [[Progressive Conservative Party of Ontario|Progressive Conservatives]] have both sat on Power Corp.'s national advisory board.
* Former premier of Quebec [[Daniel Johnson Jr.]] worked for Power Corp. from 1973 to 1981, and in the last three years of this term was a vice president of the company.
* Former member of the Liberal Party of Canada [[Maurice Strong]] became president of Power Corp. by his mid-thirties. He had a role in the creation of the [[Canadian International Development Agency]], and in 1976, he was appointed to run [[Petro-Canada]]. He later worked for the United Nations.
* Power Corp.'s international advisory board has featured individuals such as former [[German chancellor]] [[Helmut Schmidt]], former oil minister of Saudi Arabia Sheikh [[Ahmed Zaki Yamani]], former head of the [[US Federal Reserve]] Board [[Paul Volcker]], and the previously mentioned former prime minister of Canada Pierre Trudeau.
* The former [[Caisse de dépôt et placement du Québec]]'s president and CEO, {{ill|Henri-Paul Rousseau|fr}}, acted as the vice chairman of both Power Corporation and Power Financial Corporation starting in 2009 until January 2018.<ref name="www.cbc.com/news/caisse">{{Citation |title=Caisse de dépôt president leaving to join Power Corp. |url=https://www.cbc.ca/news/business/caisse-de-dépôt-president-leaving-to-join-power-corp-1.754387 |publisher=[[Canadian Broadcasting Corporation|CBC]]}}</ref><ref>{{Cite web|url=https://www.powercorporation.com/en/news/press-releases/2017/power-corporation-announces-the-retirement-of-henri-paul-rousseau-122568/|title = Power Corporation announces the retirement of Henri-Paul Rousseau - Press Releases}}</ref>

== Leadership ==

=== President ===

# [[Arthur James Nesbitt]], 1925–1954
# Peter Alfred Thomas Thomson, 1954–1957
# [[Arthur Deane Nesbitt]], 1957–1962
# Peter Nesbitt Thomson, 1962–1965
# [[Maurice Strong|Maurice Frederick Strong]], 1965–1966
# William Ian Mackenzie Turner Jr., 1966–1970
# Jean Parisien, 1970–1972
# Peter Duncan Curry, 1972–1978
# [[James W. Burns|James William Burns]], 1978–1986
# Arthur Francis Knowles, 1986–1991
# [[André Desmarais]], 1991–2020
# [[R. Jeffrey Orr|Robert Jeffery Orr]], 2020–present

=== Chairman of the Board ===

# James Blain Woodyatt, 1957–1962
# Peter Nesbitt Thomson, 1962–1968
# [[Paul Desmarais]], 1968–1996
# [[Paul Desmarais Jr.]], 1996–2020

== See also ==
* [[List of United States insurance companies]]
* [[List of Canadian insurance companies]]

== References ==
{{Reflist}}

===Bibliography===
* {{Cite book |last=Nesbitt |first=A. R. Deane |title=Dry Goods & Pickles: The Story of Nesbitt, Thomson |publisher=Nesbitt |year=1989 |isbn=0-9694148-0-3 |location=Toronto |author-link=A.R. Deane Nesbitt}}
* {{Cite book |last=Rohmer |first=Richard |title=E. P. Taylor : the biography of Edward Plunket Taylor |publisher=[[McClelland & Stewart]] |year=1978 |isbn=0-7710-7709-2 |author-link=Richard Rohmer}}

==External links==
*[https://www.powercorporation.com/en/ Official website]

{{Power Corp}}

{{S&P/TSX 60}}
{{Morningstar National Bank Québec Index}}
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{{DEFAULTSORT:Power Corporation Of Canada}}
[[Category:Power Corporation of Canada| ]]
[[Category:Conglomerate companies of Canada]]
[[Category:Insurance companies of Canada]]
[[Category:Investment companies of Canada]]
[[Category:Newspaper companies of Canada]]
[[Category:Pulp and paper companies of Canada]]
[[Category:Companies based in Montreal]]
[[Category:Morningstar National Bank Québec Index]]
[[Category:Energy companies established in 1925]]
[[Category:Financial services companies established in 1925]]
[[Category:Conglomerate companies established in 1925]]
[[Category:Canadian companies established in 1925]]
[[Category:1925 establishments in Quebec]]
[[Category:Companies listed on the Toronto Stock Exchange]]
[[Category:S&P/TSX 60]]