| Type | Public (TSX: POW) |
|---|---|
| Industry | Conglomerate |
| Founded | (1925) |
| Headquarters | Montreal, Canada |
| Key people | James Burns and Michael Pitfield, (CEO) |
| Products | media, pulp and paper, and financial services |
| Revenue | CAD 32.8 Billion (2010) |
| Net income | CAD 907.0 Million (2010) |
| Employees | 15,500 |
| Website | www.powercorporation.com |
Power Corporation of Canada (TSX: POW) is a Canadian company with assets in North America and Europe in a number of industries. These industries include media, pulp and paper, and financial services.
The corporation is known for its active participation in Canadian politics through its relationships and the relationships of the Desmarais family with prominent politicians of all political stripes.
The company was criticized for its links with Canadian politics,[1] and specifically for its commitment to the defense of federalism in Quebec. Indeed, several former Canadian prime ministers have worked on staff: Brian Mulroney, Jean Chrétien, Paul Martin, etc.
Contents |
Power Corporation of Canada was formed in 1925 by stockbrokers Arthur J. Nesbitt and his partner Peter A. T. Thompson. 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, and British Columbia. In the latter part of 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 family sold most their interest in Power Corporation to the Paul Desmarais group in 1968 and by 1970 no longer had any involvement.
Power Corporation owns 100% of Gesca Ltee, 66.4% of Power Financial Corporation and 7.1 % of CITIC Pacific.
While it was originally established as an electric utility holding company, under the control of politically connected Paul Desmarais, Sr., the company became a conglomerate with major interests in publishing and the finance industry.[2] Power Corp is widely described as the power behind the Canadian government and influential elected officials.[3]
Current members of the board of directors of the company are: Laurent Dassault, André Desmarais, Paul Desmarais, Paul Desmarais, Jr., Anthony Graham, Robert Gratton, Don Mazankowski, Jerry Nickerson, James Nininger, Robert Parizeau, Michel Plessis-Bélair, John Rae, Amaury-Daniel de Seze, and Emöke Szathmáry.
Directors Emeritus of the company are: James Burns and Michael Pitfield.
A U.S. investigation into the UN Oil-for-Food scandal determined that Power Corporation had extensive connections to French bank BNP Paribas, which was selected in 1996 to broker the Oil-for-Food program. Power owned a stake in Paribas through its subsidiary Pargesa Holding SA.[4] Pargesa Holding SA’s investment portfolio also includes Imerys, a mining entity majority owned by the Desmarais family and Belgian tycoon Albert Frère.[5]
The Desmarais family and Frère are also the largest shareholders in oil company Total SA, France’s largest oil company.[6] Total was the subject of a formal investigation by the United Nations in February 2010 for bribery charges concerning oil deliveries from Iraq during the rule of dictator Saddam Hussein.[7][8]
The company is controlled by Paul Desmarais, Sr.. Paul Desmarais, Jr. is one of thirty members of the North American Competitiveness Council, a group whose advice directs the policies of Security and Prosperity Partnership of North America (SPP). Additionally, the company has long been a close ally of the Liberal Party of Canada, although former or current members of other Canadian political parties have also worked for Power Corp. A brief summary of the connections between Power Corp. and those with political power in Canada is below.
In 2005, the board consisted of : Laurent Dassault, André Desmarais, Paul Desmarais, Sr., Paul Desmarais, Jr., Anthony Graham, Don Mazankowski, Jerry Nickerson, James Nininger, Robert Parizeau, Michel Plessis-Bélair, John A. Rae, Amaury-Daniel de Seze and Emöke Szathmáry.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
