Power Corp.’s outgoing CEO Jeffrey Orr, left, with chairman Paul Desmarais Jr., centre and deputy chairman André Desmarais in 2019. James O’Sullivan replaces Mr. Orr as chief on July 1.Chris Young/The Canadian Press
Power Corp. of Canada POW-T named James O’Sullivan as its next chief executive officer on Wednesday, succeeding Jeffrey Orr as head of the Montreal-based financial services powerhouse.
Mr. O’Sullivan, currently CEO of Power-controlled Investors Group parent IGM Financial Inc. IGM-T, will take over for Mr. Orr, aged 68, on July 1. He is the second CEO from outside Montreal’s Desmarais family, who have controlled Power since 1968.
Mr. O’Sullivan, aged 62, joined IGM, one of the country’s largest asset managers, in 2020 after a 29-year career at Bank of Nova Scotia.
On Wednesday, Winnipeg-based IGM Financial announced Damon Murchison will succeed Mr. O’Sullivan as CEO of the company, and retain his as CEO of IG Wealth Management. Mr. Murchison joined IGM Financial 11 years ago.
“We view today’s CEO announcement as a natural succession evolution with the Power Corp. ecosystem, which ensures continuity and a smooth transition,” said analyst Bart Dziarski at RBC Capital Markets in a report.
In the 1960s, the Desmarais family transformed their ownership of a Sudbury bus company into control of the Power financial conglomerate. The company holds stakes in insurer Great-West Lifeco Inc., Canada Life, Mackenzie Financial, Wealthsimple Financial Corp. and a number of European and U.S. financial services companies.
The company has $3.6-trillion in assets under administration and 40,000 employees. Power’s market capitalization is $42-billion. Subsidiary IGM Financial has $316-billion of client assets under management.
“I am enormously proud of the work we have done at IGM Financial, and I am honoured to take on this new role in the Power Corp.,” Mr. O’Sullivan said in a press release on Wednesday.
Mr. Orr became the first Power CEO from outside the Desmarais family when he took the top job in 2020. Prior to that, he was CEO of IGM Financial and Power Financial Corp. On his watch, Power expanded its U.S. insurance and asset management operations and bought, then sold, U.S. mutual fund company Putnam Investments.
Before joining IGM Financial, Mr. Orr was CEO of BMO Nesbitt Burns Inc., the investment dealer arm of Bank of Montreal and a candidate to be the bank’s next CEO.
In July, Mr. Orr will become vice-chairman of Power and remain on the company’s board.
“These changes reflect the depth of talent across both groups and the continuity of the existing strategies,” said analyst Jaeme Gloyn at National Bank Financial in a report. “We don’t expect any meaningful strategic changes at either IGM Financial or Power Corp.”
Paul Desmarais Jr., formerly co-CEO of Power, continues in his role as chair of the company and his brother André Desmarais, also former co-CEO, remains the company’s deputy chair.
“Jeff’s contribution has been extraordinary. He has been instrumental in building and strengthening Power’s businesses for many years,” Paul Desmarais Jr. said in a press release on Wednesday.
Over the past five years, Power’s share price has more than doubled, rising by 110 per cent. Early Wednesday, the price of Power shares fell slightly, by 1.2 per cent, to $64.47 on the Toronto Stock Exchange.
“James is the best person to build on our very strong performance,” said André Desmarais. “He is an exceptional and highly capable leader who has significantly strengthened IGM Financial.”