Power Corporation of Canada
Power Corporation of Canada is a major Canadian holding and management company with global interests concentrated in the financial services sector. Founded in 1925, the corporation has evolved from its origins in electric utilities into a diversified international group with significant holdings in insurance, wealth management, investment funds, and alternative assets. Headquartered in Montreal, the company is a substantial presence in the Canadian economy, influencing sectors from life insurance to fintech through its controlled subsidiaries. Its history is closely intertwined with prominent Canadian business families and has included associations with several former political figures.
Founding and Early Expansion in Utilities
Power Corporation of Canada was established in 1925 by stockbrokers Arthur J. Nesbitt and Peter A.T. Thomson, with Nesbitt serving as its inaugural president. The company was created as a holding entity to manage investments in public utility businesses, with a particular focus on the electrical power industry in Quebec's Eastern Townships and other provinces including Ontario, Manitoba, New Brunswick, and British Columbia. During the late 1930s, the corporation expanded its portfolio by acquiring a controlling interest in Bathurst Pulp and Paper Company Ltd. In 1938, it purchased Canadian Oil Companies Ltd., an asset it would later sell to Shell Oil Company in 1962. The presidency passed to Arthur Deane Nesbitt, son of the founder, in 1952, marking the continuation of family leadership for another sixteen years.
The company's early strategy was firmly rooted in the industrial and resource sectors that were central to Canada's mid-century economic growth. Its investments in pulp and paper and oil reflected a broader trend of Canadian holding companies diversifying within the resource and industrial space. This period established Power Corporation's operational model of acquiring controlling stakes in companies rather than managing them directly on a day-to-day basis. The sale of Canadian Oil Companies to Shell in 1962 represented one of the company's first major divestitures, generating capital that would later facilitate a shift in strategic direction under new ownership.
The Desmarais Acquisition and Corporate Transformation
A fundamental change in control occurred in 1968 when the Nesbitt family sold most of its interest to a group led by Paul Desmarais, concluding the family's operational involvement by 1970. Under Desmarais's leadership, Power Corporation began a significant transformation from a utility-focused holding company into a diversified conglomerate. In 1975, the company attempted a takeover of the Argus Corporation, a major holding company with interests in sectors including brewing, retail, farm implements manufacturing, and paper products. While the proposed takeover was not completed because Argus’s controlling shareholders retained their voting shares, Power Corporation acquired approximately 50 percent of the non-voting shares. In 1976, ten percent of the voting shares were sold by E. P. Taylor to Desmarais, further increasing the company's stake before Argus was sold to a Conrad Black-controlled firm in 1978.
A key structural development came in 1984 with the creation of Power Financial Corporation, a management and holding subsidiary that would become central to the group's financial services expansion. This move institutionalized the shift in focus from industrial utilities to finance. The group's geographic and sectoral growth accelerated from this foundation, with expansion into European markets beginning in the 1970s, followed by a push into Asia during the 1990s. The turn of the millennium saw major acquisitions that solidified its financial services core, including Canada Life, Mackenzie Financial, and Putnam Investments in 2000. A major corporate simplification was completed in February 2020, following a reorganization that resulted in Power Corporation owning 100 percent of Power Financial's common shares.
Leadership Evolution and the 2020 Reorganization
Leadership of Power Corporation transitioned through distinct phases following the Desmarais acquisition. A significant leadership change was implemented in February 2020 as part of a corporate simplification. The Desmarais brothers stepped down from their executive roles, with Paul Desmarais Jr. becoming Chairman of the Board and André Desmarais becoming Deputy Chairman. R. Jeffrey Orr, who had been president and chief executive officer of Power Financial Corporation since 2005, assumed the roles of president and CEO of Power Corporation, effective February 13, 2020.
This structure was updated again in July 2026, following an announcement made in February of that year. Jeffrey Orr moved to the role of Vice-Chairman of Power Corporation and James O'Sullivan was appointed as the new President and Chief Executive Officer. The board itself underwent a rationalization in 2008, when the number of directors was reduced from 21 to 12, aiming for a more streamlined governance structure. Henri-Paul Rousseau, the former president and CEO of the Caisse de dépôt et placement du Québec, served as vice chairman of both Power Corporation and Power Financial Corporation from 2009 until January 2018, bringing significant pension fund expertise to the leadership team.
Modern Financial Services Structure and Fintech Strategy
Today, Power Corporation operates as the ultimate parent company of a global network focused primarily on financial services. Its core holdings are channeled through Power Financial Corporation, which in turn controls major subsidiaries like Great-West Lifeco and IGM Financial. IGM Financial serves as the holding company for the group's investment fund companies, including Mackenzie Financial and Investors Group. By 2007, IGM Financial had been established as this dedicated vehicle for the group's investment fund operations. The corporation has actively diversified its investment strategies through specialized arms like Sagard Holdings, which began as Sagard SAS in 2002 and was later named Sagard Holdings in 2004 for its United States operations.
A significant modern strategic focus has been on financial technology, or fintech. The Power Corporation group participates in this emerging industry through partnerships and investments facilitated by its subsidiaries Great-West Lifeco and IGM Financial. This fintech strategy is achieved through Portage Ventures, which launched a fintech-focused investment fund, as well as direct investments in companies like Wealthsimple and Personal Capital. The group also uses the entity Diagram for its fintech initiatives. In parallel, the corporation has expanded its global asset management footprint, purchasing a 10 percent stake in China Asset Management from CITIC Securities Co. in 2011 and founding the Sagard China fund that same year.
- Great-West Lifeco: A leading insurance and financial services holding company with operations in Canada, the U.S., and Europe.
- IGM Financial: Holds Investors Group and Mackenzie Financial, managing retail wealth and asset management.
- Sagard Holdings: Multi-strategy alternative asset manager for private equity, credit, and venture capital.
- Portage Ventures: Fintech-focused investment fund launched by the group.
- Wealthsimple: Canadian robo-advisor in which the group holds an investment.
- China Asset Management: 10 percent stake acquired in 2011.
Detailed Associations with Political Figures
Power Corporation has been the subject of sustained media commentary regarding its relationships with Canadian political figures, with critics at times alleging that these connections may provide advantages. According to a 2007 report by The New York Times, such criticisms have been periodically levelled at the Desmarais family. The company and the Desmarais family have been known as defenders of federalism in Quebec. Several former prime ministers and senior officials have held roles within the company, its subsidiaries, or its advisory bodies. Paul Martin, who later became Prime Minister, was hired in the 1960s under Paul Desmarais Sr., reportedly through Maurice Strong, and later became president of Power Corporation subsidiary Canada Steamship Lines.
Former Prime Minister Jean Chrétien served on the board of Consolidated Bathurst, a Power Corporation subsidiary, in the late 1980s prior to becoming leader of the Liberal Party of Canada. Chrétien’s daughter, France Chrétien, is married to André Desmarais, creating a direct familial link. Chrétien’s longtime aide Eddie Goldenberg and strategist John Rae, the brother of Bob Rae, also held positions at Power Corporation. Pierre Trudeau served on the company’s international advisory board in the mid-1990s, and his assistant, Ted Johnson, was also associated with the company. During and after Trudeau’s tenure, Michael Pitfield held roles in the public sector and later served as a vice-chairman of Power Corporation.
Former Prime Minister Brian Mulroney has also been associated with the company, with media accounts describing his relationship with Paul Desmarais Sr. and reporting that Mulroney undertook legal work for Power Corporation after leaving office. Former Minister of Transport Don Mazankowski later served as a director of the company. On the provincial level, former Ontario premiers Bill Davis and John Robarts served on Power Corporation’s national advisory board, and former Quebec premier Daniel Johnson Jr. worked at the company from 1973 to 1981, including a period as vice president. Maurice Strong, who served as president of Power Corporation at a relatively young age, later held roles in establishing the Canadian International Development Agency and leading Petro-Canada.
Historical and Current Investment Portfolio
The Power Corporation group's portfolio has shifted dramatically from its original utility base to a vast array of financial and alternative investments. The attempted Argus takeover in the 1970s signalled an interest in a broad conglomerate model spanning brewing, retail, and manufacturing. The definitive turn to financial services was marked by the 1984 creation of Power Financial and accelerated with the acquisitions of Canada Life, Mackenzie Financial, and Putnam Investments in 2000. By 2009, Power Corporation's interests included the parent company of the Montreal newspaper La Presse, alongside its core financial holdings like Great-West Life, London Life Insurance, Canada Life Assurance, and Putnam Investments. The company has also been an early supporter of corporate philanthropy programs, beginning its support for the Imagine Canada program in 1989. Its investment in media through La Presse reflected a historical pattern of Canadian conglomerates holding media assets, though this was a non-core holding. The group's strategy now emphasizes control over large financial services platforms complemented by strategic minority stakes in areas like Chinese asset management and a growing portfolio of fintech and alternative investments through its dedicated arms.
| Era | Sector Focus | Key Holdings/Initiatives |
|---|---|---|
| 1925 to 1960s | Electric Utilities & Resources | Quebec power utilities, Bathurst Pulp and Paper, Canadian Oil Companies (sold 1962) |
| 1970s-1980s | Conglomerate Diversification | Argus Corporation shares, Consolidated Bathurst, creation of Power Financial (1984) |
| 1990s-2000s | Financial Services Consolidation | Acquisition of Canada Life, Mackenzie, Putnam (2000). Expansion in Europe/Asia |
International Advisory Boards and Global Profile
Power Corporation has long maintained international advisory boards to guide its global strategy, featuring a roster of prominent former statesmen and financial experts. The company’s international advisory board has included figures such as former German Chancellor Helmut Schmidt, former Saudi Arabian Oil Minister Ahmed Zaki Yamani, and former U.S. Federal Reserve Chairman Paul Volcker. Pierre Trudeau's service on this board in the mid-1990s is one of the most noted examples of a former Canadian leader contributing to the company's international counsel. These boards provided strategic insights into global economic and political trends, supporting the company's expansions into Europe and Asia.
The existence of these high-profile advisory bodies points to Power Corporation's ambition to operate as a globally connected financial group. The North American Competitiveness Council, of which Paul Desmarais Jr. was a member, was another forum linking corporate and policy leaders, providing recommendations related to the Security and Prosperity Partnership of North America. This external networking at the highest levels has been a consistent feature of the company's approach to business, complementing its internal management and its direct associations with former Canadian political figures. The blend of domestic political connections and international advisory expertise has shaped its navigation of regulatory environments and market opportunities worldwide.
Questions about Power Corporation of Canada
Who owns Power Corporation of Canada?
Power Corporation of Canada is a publicly traded company. Control shifted in 1968 when the founding Nesbitt family sold most of its interest to a group led by Paul Desmarais. The Desmarais family has maintained control since that time, with family members holding key leadership roles such as Chairman and Deputy Chairman. While there are public shareholders, the Desmarais family's controlling stake directs the corporation's strategy over its subsidiaries in insurance, wealth management, and other financial services.
What companies does Power Corporation of Canada own?
Power Corporation owns 100 percent of Power Financial Corporation, which in turn holds controlling stakes in major financial services firms. These include Great-West Lifeco, a large insurance holding company, and IGM Financial, which owns wealth management firms like Investors Group and Mackenzie Financial. Historically, the group's holdings have also included Canada Life, London Life, Putnam Investments, and a stake in China Asset Management. The corporation also has alternative investment platforms like Sagard Holdings and fintech investments through Portage Ventures and companies such as Wealthsimple.
Is Power Corporation a Canadian company?
Yes, Power Corporation of Canada is a Canadian company, founded in Montreal in 1925. Its global headquarters remain in Montreal, Quebec. While the corporation has significant international operations and investments across North America, Europe, and Asia, it is incorporated and based in Canada. It is a major player in the Canadian financial services sector and is listed on the Toronto Stock Exchange, making it a fixture of the Canadian corporate landscape and a significant holder of domestic financial assets.
What is the relationship between Power Corporation and Power Financial?
Power Financial Corporation is a wholly-owned subsidiary of Power Corporation of Canada, following a reorganization completed in February 2020. Power Financial acts as the primary management and holding company for the group's core financial services operations. It consolidates the ownership and oversight of key subsidiaries like Great-West Lifeco and IGM Financial. This structure simplifies corporate control, with Power Corporation as the ultimate parent company and Power Financial as the main operational vehicle for its financial holdings, a relationship formalized in the 2020 corporate simplification.
Who is the CEO of Power Corporation of Canada?
As of July 2026, the President and Chief Executive Officer of Power Corporation of Canada is James O'Sullivan, following an appointment announced in February of that year. He succeeded R. Jeffrey Orr, who had served as President and CEO since the 2020 reorganization. Orr transitioned to the role of Vice-Chairman of the corporation in July 2026. The previous long-term leaders were Paul Desmarais Jr. and André Desmarais, who served as co-CEOs for 24 years until stepping down into chairman roles in 2020.
Why is Power Corporation often mentioned in Canadian politics?
Power Corporation is frequently mentioned in political commentary due to the numerous connections between its leadership and former Canadian political figures. Several former prime ministers, including Paul Martin, Jean Chrétien, and Pierre Trudeau, have held roles at the company or its subsidiaries or advisory boards. The Desmarais family is also related by marriage to the Chrétien family. These associations, along with roles for former aides and ministers, have led to periodic media scrutiny and criticism from those who suggest the relationships could confer influence, though the company operates as a private commercial entity.
Sources and further reading
- Power Corporation of Canada (Wikipedia)
- Power Corporation of Canada (POW.TO) (ca.finance.yahoo.com)
- About | Power Corporation of Canada (powercorporation.com)
Checked by the Yadude Books desk. Last updated 2026-11-07.
