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uwaterloo.ca/innovation-arena FP1322 Contents

WOMEN LEAD HERE 2 EDITOR’SNOTE OUR ANNUAL BENCHMARK STUDY 4 SEVEN THINGS OF WOMEN IN CORPORATELEADERSHIP It’s not just you—two- thirds of Canadians are ABOUT TIME holding on to meh jobs It’s Rania Llewellyn’s job to fix during the pandemic. Laurentian Bank. As the first woman Plus, whywomen often to leadamajor Canadian bank, she’s settle fornot-so-dream jobs and howgrey up to the task. /ByJoanna Pachner skies could sink your startup Meet the 71 companies thatmade our list, plus fiveCEOs on moving 7 NEED TO KNOW diversityand inclusion beyond gender Aradical idea for improving drug development: quit sooner

9 BIG IDEA

Connecting with a SON different sort of mentor TRICK AS

11 ASK AN EXPERT CC Canyou lose your job forflouting public- ION REBE

health guidelines AT outside of work? (Spoiler: absolutely)

12 THE EXCHANGE Two-time central bank governor and AHDESMAKI; ILLUSTR first-time author Mark UL Carneyhas stared into the abyssofseveral financial crises. Nowhe’sleading

Brookfield’scharge to RD; (RIGHT) MARKK save the planet (and WA makemoneydoing it)

52 WEALTH O’SHANE HO

Andrew Simpson’s BY funds onlyinvest in companies thatmeet AZINE AG sociallyresponsible BM

How Anne of criteria—which is RO

Green Gables whyhe’ll take the OR helped launch FAANG stocks, minus YF John Hamer’s 36 44 Facebook VC career page 41 SAYEHHHH GREATEST SHOWONEARTH 56 TURNING POINT Canada has produced some of Formuch of its existence, ForTop Hat’sMike the biggest names in biotech bitcoin could be dismissed as Silagadze,being CEO (including the guywho financed apeculiar butpassing fad. But GRAPHED EXCLUSIVEL

meant awhole lot of TO COVID-19 vaccine maker now, the worldoftraditional stress—which is why Moderna). Toobad theyall left financeisscrambling to he decided to hand the job to someone else VER PHO

forthe U.S. /BySeanSilcoff catchup. /ByJason Kirby CO

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Butdriverswill need places to plug in afterthe upgrade.

CANADIANS WHO BELIEVE…

CHARGING CARMAKERS STATIONS SHOULD 83% SHOULD BE 89% HELP PAY AT EVERY 04/21 FORELECTRIC GASSTATION, CHARGING PLUS MALLS AND INFRASTRUCTURE GROCERYSTORES

Driving ranges ONLINE BOOZESHOPPING arethe hottest 3 IS TAKING OFF sports venues TheUnited States will replaceChina as the largest market foronline alcohol sales 2.“Off-course”golf,including driving in the world within the next two years, according to IWSR,adatafirm. rangesand similar venues, is the fastest growing physical activity, 2019 $7 BILLION according to the Sports and Fitness $3.1 CHINA Industry Association. $8.6 2020 $5.6 UNITED STATES TOP5SPORTS WITH HIGHEST 2021 $8.8 GROWTH IN PARTICIPATION $9.4 (2015-2020) 2022 $12.4 OFF-COURSE GOLF: 72% PICKLEBALL 67% AMAJORITY OF 5 SKATEBOARDING 38% CANADIANS ARE TENNIS 21% Women often get 6 “SHELTERING” badcareer advice IN THEIR JOBS FLAG FOOTBALL “Female students 68% of respondents to aLinkedIn survey are 20% prioritizing asteady paycheque overwork they aremore find rewarding or career growth. dissuaded from their preferred career path than male students, and Burgers arestill king While Popeye’sfried chicken sandwich 4 this differenceis has spurred anew trend in fast food, INVESTORS in part explained hamburgerswerestill the toppick among Canadians lastyear, according 7 GIVE LESS ON by professionals’ to the NPD Group. greateremphasis CLOUDYDAYS SERVINGSSOLD IN 2020 on work-life “Do investors’ moods influencetheir contributions to riskyinvestments balancewhen in equitycrowdfunding?Yes.…Our resultsindicatethatchange in sky responding to HAMBURGERS BREADED CHICKEN BBQCHICKEN cloud coverfromzerotofull reduces female students.” 739MILLION SANDWICHES SANDWICHES each investor’s contribution amount 228MILLION 18 MILLION by about 10% to 15%.”—Kourosh —Yana Gallen and Melanie Shafi and Ali Mohammad, Journal of Wasserman, University CorporateFinance of Chicago working paper

4 APRIL 2021 /REPORTONBUSINESS Advisory Board

Pandemic Effects turning the industry on its head. Over the past severalissues, we’veinvited executives from the Solutions born out of necessity arethe newnormal. But, just as important, this Report on Business list of Canada’sTop Growing Companies past year has prompted us to renew to sharehow the pandemic has permanently changed their our pledgeofcommitment to our business. Here, moreoftheir responses. community. Giving back has always been acore value,but the pandemic MARC LAFLEUR disruption to shipping and packaging has reallyelevated that. CO-FOUNDER AND CEO, truLOCAL material. I’dhighlyencourage Operates amarketplace forlocal meat businesses to audit and implement SHELBYTAYLOR supplierstosell their products online aplan A, Band Cwhen it comes to CEO, CHICKAPEA Ithink with the pandemic there’s shipping and packaging material. Manufactures organicpasta made of chickpeas and lentils been obvious changes that will affect every type of business regardless of ELIZABETH WOOD While we always expected to see industry.Things such as dailyZoom EXECUTIVE VICE-PRESIDENT,CMI our online grocery sales grow over calls and WFH areheretostay, but FINANCIAL GROUP time,that trend has certainlybeen one newprocess that we’veadopted Offers privatemortgagefinancingand accelerated due to the pandemic and alternative investments arefull audits of our packaging supply has pushed afairly tech-resistant chain. When people think about supply Theobvious answeristechnology. industry into the future. Ibelieve the chain, they usuallyjust think about It conveys apowerful competitive waypeople shop has been permanently the products they sell, but as adirect- advantagetonimble companies like affected, and we will continue to to-consumer business, the threat of CMI. Changes implemented to keep see online grocery sales grow as a lockdowns during the early days of people safe—electronicsignatures, percentageofour revenue,which will the pandemic had us realizing how no-contact appraisals—were expedited continue to see our marketing dollars vulnerable we all were if therewas a due to the pandemic and arenow shift from in-storetodigital programs. WE EMBRACETHE PHILOSOPHY THAT THEBES LEADERSHIPIS DIVERSELEADERSHIP.

H&R REIT is proud to have earned aspot on the ReportonBusiness "Women Lead Here" list for asecond year in arow.Werecognize the achievements and talents of our people and we have been able to create adynamic executive team which is afoundation to our success.

www.hr-reit.com Need to know

Abooster shot forproductivity Newresearch suggestsanovel way forpharma companiesto bolstertheir work:Giveupsooner

When Ottawa announced last year it would makeamultimillion-dollar invest- ment in the development of aCOVID-19 vaccine production facilityinMontreal, to be owned and operated by U.S.-based Novovax, the decision represented not onlyabid to repair asupply chain problem butalso abet on acompanythathas long struggled to turn its scienceintoprofits. The33-year-old Maryland pharmaceu- tical firm dnha ever managed to win FDA approval forany of the drugsinits pipe- line—a record of strike-outs thatattracted short-sellersand even the threatofde-list- ing from Nasdaq, as the Financial Times reported recently. Butthen came the Trump administration’s push to finance vaccine development, giant cash infusions, successful clinical trials and, ultimately, amassive bounceinboth revenues and Novovax’sstock price, which nowtrades in the $200range, up tenfold in the past year. Though nowamoot point, it’sworth considering what would have happened if Novovax hadpulled the plug on its vaccine development program when the scienceseemed to be ION ANSON CHAN AT ILLUSTR

APRIL 2021 /REPORTONBUSINESS 7 Need to know going sideways.After all, in the worldof grand productivitydilemma from astra- both big and little pharma, drug develop- THERE ARE tegic management perspective, scientists ment programs fizzle taou ll the time. In and R&Dmanagersknowthe decision to fact, according to manyassessments, only discontinue the development of acom- about5%ofdrugsget from the lab to phar- REASONS pound involvescountlessvariables. macy shelvesorhospital formularies—a Before theygotoclinical trials, drug bracing statistic thatexplains both the THAT development projects maybehalted extravagant cost of drug R&D (as much as because the compound is not safe,not $3 billion per medication thatsurmounts PROGRAMS effective, or would requiremassive doses all the clinical and regulatory hurdles) to achieve atherapeutic result. “I’veseen and the perennial industry hand-wringing all of those play out,”saysindustry veteran aboutproductivity. SHOULD BE Les Brail, amedical biophysicist. “You can Pharmaceutical companies should be always go back and do morechemistry. morepreparedtoactuallyreject the kind KILLED Butatsome point, unlessyou can makea of stick-with-it-nessthatNovovax demon- very good argument forwhy youcan solve strated forall those yearsinthe wilderness, the problems you’ve run into, thereare according to anew study. Afterreviewing reasons thatprograms should be killed.” 1,274 early-stagedrug development programs, the paper,published At the same time,emerging technolo- late last year in the Journal of Production and Operations Manage- gies mayoffer newapproaches. Sarah ment,concluded thatpharma companies should give up sooner on Dion-Marquis, aspokesperson forInnova- floundering projects, redeployresourcestoensurethatlater-stage tive Medicines Canada, an industry body, drugsget acrossthe regulatory finish line,and look, well, clinicallyat notes, “Developments in artificial intelli- the amounts rivalfirms areinvesting in comparable products. gencemay further changethe natureand “If all theydoisemergent drugs[i.e. brand newtreatments], they development cost structurewherethera- face avery large risk,”saysco-author MorenLévesque,aprofessor peutic candidatescan be moretargeted of operations management and information systems at the Schulich and identified earlier.” School of Business, as well as the CPAOntario Chair in International Lévesque and othersalso arguefor fur- Entrepreneurship.(Hercollaboratorsare Annapoornima M. Subra- ther structural changes in the drug sec- manian of the National UniversityofSingapore,and Vareskavan de tor—morecollaborations and data shar- Vrande of the Rotterdam School of Management.) ing between big and little pharma, or with In some cases, theynote, drug companies maybepushing long-odds academic institutions, to spreadout risk. projects because their scientists areoverly invested in anew com- “Such initiatives,”writeLévesque,Sub- pound or,moreproblematically, because C-suiteexecutivesare anx- ramanian and vandeVrande,“will not ious thatinvestorswill bail if theydisclose thatone of their pipeline onlyhelp biopharma firms allocate their projects has been discontinued. resourcesmoreeffectively…byextending Pharmaceutical industry managersand research team leaders, the [discovery and development] initiatives authorsargue,should discontinue early-stagedrugsnot just because beyond firm boundaries, butalso help theyaren’tpanning outasexpected, butalso forbusinessreasons firms to combine [their] expertise and relating to their overall portfolios—an approach, theyobserve, that efforts acrossthe entireindustry.” AstraZeneca adopted afterashake-up of its R&D operations in 2011. These aregreat high-levelfixes, but Yet, Lévesque cautions, if research is contained to asmall team work- the latest X-factor in the ongoing pharma ing on an early-stagediscovery processwithin alarge firm with lots of productivitysagaishow COVID-19 has other development drugsnearing approval, “the opportunitycost is impacted drug development pipelines— small enough to warrant taking the risk of hitting awinner.” something we won’tknowfor afew years. While Lévesque and her collaboratorsapproach the industry’s TheLancet reported thatthe National InstitutesofHealth found thathundreds of clinical trials hadbeen halted or sus- pended due to workplacerestrictions, lab DON’T MAKE FRIENDSWITH MR.POPULAR closures, and the re-deployment of medi- cal stafftothe front lines of the pandemic. Both Lévesque and Brail expect thatthe In this eraofviral marketing, companieswork hardtoget their messagesto pandemic mayalso servetostreamline high-profile individuals to sharewith their networks. Brands think theycan some of the logistics involvedinR&D that sell to an entiresocial group or company, justbycatching the attention of have soaked up hugesums overthe years, someone popular (orpowerful). Butnew researchled by Gabriel Rossman, forexample the practiceofflying teams of aUCLA professorofsociology,suggeststhatwhen even asmall amountof drug companypersonnel to hospitals all advertising exists,itdoesn’t matter whether youconnect with the centre overthe worldtooversee clinical trials. of anetwork or an individual at itsmost distant edges. As Rossman putsit: Consider it the pandemic’sbooster shot “It’s notthatword-of-mouth doesn’t matter—it’s thatnobody is particularly forBig Pharma’schronic productivity important forthe word-of-mouth process.” condition. /John Lorinc

8 APRIL 2021 /REPORTONBUSINESS at the Oakville SoccerClub with either atraditional or apeer mentor (in this case,peership wasdetermined by the individu- als’ Ontario SoccerAssociation certification vele l). Thementors BIG IDEA provided feedback before, during and afterthree games wheretheir Don’t forcethe mentorship chargeswereofficiating. Each time,the advicefocused on adif- Traditional mentoring relationshipsinvolveaneophyteand amuch, much ferent area, such as game duties older adviser.But guidancefromapeer has itsown benefits or communication. Aftereach session, mentees completed sur- veys abouttheir sense of social ristina Makxam wasworking as erees, including Makxam, for support, “voicebehaviours” areferee with the Oakville Soc- his graduate work at the Smith (howfrequentlytheyspokeup cerClub in Oakville,Ont., last School of BusinessatQueen’s and shared recommendations to year when she wasoffered an University. “The thinking is betterthe organization) and how opportunitytodevelop her skills often thatyou need the most likelytheyweretoquit or look for through amentorship program. senior or experienced person in another job.Mentorsalso filled She hadbeen mentored by a the room driving the learning. outsurveysabouttheir mentees’ much older and moreexperi- Butwe’ve found thatthere’sa professionalism, communica- enced soccerofficial in the past, certain opportunitycost with tion and strength in the technical butthis time she waspaired with thatapproach.” aspects of their role. acolleague with the same level Peer mentorship eliminates Mentees paired with their of certification from aprovin- the powerdifferential inherent peersoutperformed those cial association. This peer men- to traditional programs by pair- in hierarchical relationships in toroffered writtenand verbal ing mentees with someone of all ways.Theyperceived having feedback abouther refereeing of similar age, status or tenure. moresocial support, were less three matches. To explorethis dynamic, likelytoconsider quitting, spoke “Working with apeer wasless Aslett, assisted by associate up moreoften and scored higher intimidating,”Makxam says.“I professor Matthias Spitzmuller, on their performanceasreferees. wasmorereceptive to learning teamed 74 referees-in-training In his ownlife, Aslettrecalled sinceitfelt morelikeatwo-way collaboration and lesslikean assessment, which can be nerve- wracking. Plus, it wasjust easier to communicate with someone I could relate to.Ifelt morecom- fortable asking questions, and my peer mentor explained things in away Itrulyunderstood.” Newresearch highlights that peer mentorship offers benefits overamoretraditional approach forboth parties in the relation- ship.Pair amentee with amentor theycan relate to and they’ll per- form better—and be lesslikelyto quit—than when working with amoreexperienced colleague. “There’ssome resistancetohav- ing, forinstance, young people teach other young people,” says GRAPH AP MatthewAslett, whostudied TO mentorship among soccerref- PHO

APRIL 2021 /REPORTONBUSINESS 9 HAVING A FRIENDLY, NO-PRESSURE SOUNDING being verballyabused by an older tors aremorewidelyavailable coach while officiating his first BOARD WAS within most organizations. The soccergame at 16.Hewanted to trick, of course,ismaking sure quit. Butapeer on anearbyfield those teaching othersknow encouraged him, saying he’d had IMPORTANT what they’redoing. “The chal- the same thing happen to him lengeofpeer mentorship is mak- and wastheretosupport Aslett. AT THAT ing surethe knowledgebeing “Having afriendly, no-pressure passed on is of high quality, or sounding boardwas important yourisk getting intoablind- at thatmoment,”hesays. “If I MOMENT leading-the-blind situation,” went to asupervisor and said the says Spitzmuller.Thus, hierar- game gotout of control, Iwould chical mentorship still has arole be worried they’dthink Iwas willing othersare to help them— to play,the researcherssuggest. unqualified and wouldn’t give aproblem compounded by the In practice, this could look like me anymoreassignments.” possibilityofreputational dam- acombination of both styles Theimprovedperformance agewhen powerdynamics areat within an organization, with forpeer mentees is likelypartly play.“We can reducethe reluc- some fluiditybetween the roles. drivenbyanenhanced feeling tancetoask forhelp by assigning That is, the same person could of security. “In traditional men- apeer mentor,wherethe per- be amentor in one contextand torship,there’soften not the ceived costs of reaching outare amentee in another,amounting psychological safety one needs lower,”saysSpitzmuller. to scaffolded layers of peer and to be honest aboutany issues or Research shows thatmentors traditional mentorship pairs. shortcomings,”saysSpitzmuller, stand to gain much from guiding Spitzmuller’s four-year-old whose research focuses on team apeer,too.Michael Morrison, daughter attends aMontes- motivation and non-traditional Makxam’s mentor,said the men- sori school, wherechildren as leadership hierarchies. In an torship experiencereignited his young as five areresponsible organizational context, he says, love of soccerand forced him to forteaching younger kids skills ajunior employeemay not share hone his communication skills. like placing boots in cubbies or fearsand limitations with a This translatedtobetterrelation- putting on snowpants. Everthe senior mentor if it might jeopar- ships at work and home. In addi- researcher,Spitzmuller noticed dizetheir standing. “Butiftheir tion, the experienceoffeeling howmuch smoother this type of mentor is of similar status, age competent and providing helpful learning seemed to go between or livedexperience, theyhave advicetoothersseems to boost children compared with when moreofanopportunitytobe confidenceinmentors. Astudy teachersare involved. “With vulnerable and receivefeedback on peer mentorship in nursing our peers, there’sthis willing- preciselyinthe areastheyneed it pointed to enhanced leadership nesstolearn from each other most,”explains Spitzmuller. skills in mentors; individuals in and grow together,” he says.“I Peer mentorship has also been another studyonengineering think that’sconsistent withour shown to improve knowledge students hadimprovedgrades basic desires forautonomyand transfer within an organization. and retention rates. belongingness, which we know Tacit knowledge—think unwrit- Freeing up the time of higher- arepowerful drivers of motiva- tenrules, likehow to speak up tier executives, whoneed to tion.”Ultimately,peer mentor- in ameeting or phrase an email mentorlessoften, is another ship is aboutharnessing social to aclient or senior employee— potential benefit. Unliketheir relationships to benefit anga- or flows moreeasilybetween peers, senior counterparts, peer men- nization as awhole. /LizaAgrba according to astudybyScott E. Bryant at Montana StateUni- versity. This experience-based Big Idea is produced with the support of our advisorypanel know-howisoften difficult to acquireand tends to be taken forgranted by those whohold it. Ensuring thattacit knowledgeis made explicit to mentees seems Yrjo Koskinen,AssociateDean, Research; Yolande Chan,AssociateDean, Haskayne School of Business Research at Smith School of Business to be aparticular strength among Stephane Massinon,Director, Public NancyEvans,Executive Director, mentorsofsimilar standing. And Relations; Haskayne School of Business Marketing and Communications, research shows thatpeople dra- Smith School of Business. maticallyunderestimatehow

10 APRIL 2021 /REPORTONBUSINESS Need to know

give up.Theyfigure they’ll sell when theyneed to or let someone else deal with it when theydie,” she says.But sudden death as abest-case scenario is likelyworst-case foreveryone else. Lots of responsibility comes with being aleader,but youdon’t have to carry it alone; it’sokayand even preferable to involve your toppeople with the planning process. That ensures thereare no surprises when the time comes. “Likeeverything else,ifyou plan forit, everything will probably be fine,” says Guenther.“When youdon’t plan, ASK AN EXPERT the wheels come off.”

My employees have really Regrets only embraced working from home. Should we downsizethe corporate One of my executiveshosted alarge dinner party—in violation offices or wait to see howpeople of pandemic-relatedpublic health guidelines. It wasn’t awork feel post-pandemic? event, butother employees found outand arevery angry. Manycompanies have been Is it none of my business, or should Idiscipline the individual? pleasantlysurprised abouthow happyand productive workers have been at home; no wonder Youcan and should, says David J. followed.”Ideally, thatmessage some firms ekar een to cuttheir Doorey,aprofessor of work law includes awrittenapology from rent payments. Butdon’t be at York University. “This person the offender. hasty, says human resources is in aposition of authorityand consultant Janet Salopek. What is supposed to showleadership,” Idon’t have asuccession plan mayseem likeabudgetary says Doorey.“At minimum, it to determine whowill replaceme no-brainer is amajor upheaval demonstrates asignificant lack as CEOofmyfamilycompany. foryour firm. “Going entirely of judgement.”The effects of the Who should create one? virtual is acompletecultural partycould have been disastrous Janine Guenther is the newly shift, and forcultureshifts to be and deadly. That’s agood enough appointed president of Dixon well thought out, it takestime,” reason to take this infringement Mitchell; RobMitchell is the says the founder of Salopek seriously. Butdon’t dismiss investment firm’s founder,who &Associates. She suggests lingering consequences at the graciouslystepped aside. Years considering manyscenarios: office, either.“If execs can ignore earlier,Mitchell hadbegun back-to-the-office,work- health and safety guidelines, planning his departure, on his from-home and afew hybrids. then so can regular employees. terms, hand-picking the new “Exploreother options rather And now, youcan’t take action bossand integrating her intothe than all-or-nothing,”she says. against employees without company. Butthis ideal situation And solicit employees’ feedback being ahypocriteand inflating is rare,eveninanindustry that’s via surveysand continuing even moreanger.” Countless supposed to knowbetter. “We communication (you’redoing factorsgointodetermining an often advise clients to have a thatalready,right?). “Remember appropriate punishment—up succession plan in place—we’re thatevenifpeople saytheylove to and including firing. But on them all the time,actually— working at home,theymight at the very least, youshould and still onlysix of 10 business think totallydifferentlyinayear, officiallyand publiclywritethem ownersdo,”saysGuenther.Like so it’swise to keep the door

KENDRY up forunbecoming conduct. awill, it’syour responsibility. open,”Salopek says.Remind Doorey suggests “a noticeto Yetalso likeawill, psychological yourself of other savingsyou’re employees saying the behaviour barriers(family, legacy, enjoying—overhead, utilities, ION JOE M C wasunacceptable,disciplinary mortality, conflict, uncertainty) supplies—and treatpaying AT actions arebeing takenand can hold youback. “It’sso rent as an investment in future health guidelines will be overwhelming thatsome people options. /Rosemary Counter ILLUSTR

APRIL 2021 /REPORTONBUSINESS 11 Need to know

Howdoesitfeel to be back in Canada? It’s great. We’vebeen back in Ottawa sincemid-August. Same house we left. Likeeverything, though, it’sstrange, because for asubstantial proportion, it’s been semi-lockdown, if not full lockdown. I’vebumped intovery few people in the six months I’ve been home. It’s minus 15.You gottacall someone up and meet them forasociallydistanced walk. Butit’sgood to be back and feels...integrated. Youled the Bank of England for sevenyears.How do youthink it THE EXCHANGE changed in those years? My utilitywas as an outsider. Effectively,the systemhad failed Aman forall crises there. Most of the major banks hadbeen rescued, and aseries Thefinancial crash. Brexit.The early days of the pandemic. of scandals emergedinthe Through it all, Mark Carneyhas been asteady hand. market. (1) It’s hardtochangea Now, back in the corporaterealm (and with anew book out), 325-year-old institution steeped he’s tackling the biggest crisis of all: climate change in history.But therewerea couple of advantages. One was, BY TREVORCOLE thingshadn’tworkedthatwell. Secondly, the structurehad changed. Prior to the crisis, the If Thomas More wasthe man forall seasons, Mark Bank of England waslikethe Carneymight be the man forall crises—the finan- Bank of Canada. It hadmonetary cial ones, at least. History will record thatCarney, policy responsibilityasasort of born in the Northwest Territories 56 yearsago,rode educated-observer role on the good fortune and intellect from the margin of the financial system, butnopower world, through Harvard, Oxford, Goldman Sachs on the financial system. George and the Canadian department of finance, intothe Osborne’s (2) reforms were middle of the most tumultuous economic events of to makeitthe bank regulator, recent times. As Governor of the Bank of Canada, the regulatorofinsurance, the he hadanintimate viewofthe financial crisis of regulatorofall the financial 2008-09.AsGovernor of the Bank of England, he marketinfrastructure. It’s helped steer thatcountry’sfinancial systemthrough 1. Prior to changed alot because of bedding the 2016 Brexit referendum and its immediate fall- Carney’sarrival, down those reforms; thatwas part the Bank of out. And he wasstill thereasthe first tremorsof England had been of the job.And culturallywithin the COVID-19 pandemic were being felt. At every criticized for the organization—the diversity stage, he helped mitigatethe damage. Nowback in failures during of the personnel, howdecisions the corporateworld, havingparlayedhis status as the financial crisis were made. All central banks and, in 2012, the UN special envoyfor climate action and finance wascaughtup arehierarchical, butthe Bank of intothe leadership of Brookfield Asset Manage- in arate-fixing England, being the second oldest, ment’senvironmental, social and corporategover- debacle known as wasashierarchical as youcan the Libor scandal. nanceinvestment strategy,Carneyhas produced a (Libor stands for get. That needed to change. And book. At adense 531 pages, Value(s) covers avast London Interbank Ithink it has shiftedalong way. rangeofissues, from the history of moneyand the OfferedRate.) Nowyou’ve landed at Brookfield RELLO ZA foundations of the modern financial systemtothe Asset Management.Why 2. George banker’s experiences at the lip of the world’seco- Osborne was Brookfield? nomicabyss. It also offers adetailed blueprint for Chancellor of Ihad takenaninterest in purpose-drivenleaderswho see the value in doing the Exchequer in sustainabilityasamoral good while doing well in aworld beset by existen- Prime Minister imperativeand fundamental

David Cameron’s GRAPHS ALEXA MAZ tial challenges. With much to discuss, Carneyspoke issue,soIwanted to do cabinetfrom TO to us via Zoom from his home in Ottawa. 2010 to 2016. something to advancethat. PHO

12 APRIL 2021 /REPORTONBUSINESS APRIL 2021 /REPORTONBUSINESS 13 Need to know

Secondly, I’veknown the senior BROOKFIELD RENEWABLE PARTNERS partners, I’veknown BruceFlatt, for25years. Ihaveimmense respect forthem personally, but EUROPE NORTH AMERICA $11 BILLION also forwhatthey’vedone with $29BILLION 4,100 MW the organization. And therewas a 9,400 MW ASIA 17 $1 BILLION unique coming together,because 1,400 MW theywerethinking abouttheir COUNTRIES impact-investing strategy.I’m TOTAL SOUTH AMERICA POWER ASSETS thinking aboutclimate,putting $11 BILLION actions to my words, if you $52BILLION 4,500 MW 19,400 will. I’vebeen doing it as a 5,318 MEGAWATTS regulator, butthis is achance OF CAPACITY to addresssustainabilityfrom GENERATING FACILITIES an opportunityperspective with one of the biggest private HYDRO7,900 MW ownersofrenewables in the WIND 4,700MW world. Brookfield understands SOLAR 2,600 MW decarbonization. It understands DISTRIBUTED GENERATION 850 MW howtotransform companies. STORAGE2,700 MW It’s gotglobal reach. And when it focuses on something, it really preparefor what wascoming, interest of the system, not just focuses on it. So,the opportunity butyou couldn’t stop it. One of their owninstitution. to set up astrategy to accelerate the challenging thingswas the Arethereenough protections in the transition toward anet-zero emergency rate cutinOctober placetoprevent thatkind of thing economywas very attractive. 2008. At the time,itwas an from happening again? Howdoyou define impact election campaign. And wrongly, Thereare manymore investing? Iwas concerned thatuscutting protections. Financial history In effect, impact investing has a rates, when the narrativewas suggests younever should say double bottomline. It’s looking thateverything wasfine,would there’senough. Ithink we’realot at contributing measurable be seen as political. And then farther down the road thatalarge social and environmental good, Ihad asmall epiphany: Wait institution could fail without alongside afinancial return. The aminute—if the onlyreason bringing the systemdown. And impact funds thatexist, anchored Idon’t do it is because it’s it would be quitevaluable if that in sustainable development in the middle of an election happens, in terms of the lessons goals, have targeted investment campaign, then that is political. it would teach to others. thatimprovesclean wateror And of course,asIdetail in the Yousay thatthe waytoprevent gender parityineducation or soil book, if anything, it helped the acrisis likethis is notmore health or the oceans. My view government, as it turned out. (5) regulation. Why? was, if we’regonna do something In the aftermath, do youthink Did Isay that? Idon’t think Isaid there, whydon’t we take on the enough wasdone to hold people that. biggest issue,which is climate? accountable? Youwrote thatitpromotesa Go to wherethe emissions are, Idon’t think the systemwas set cultureofcomplying with the take companies and assets and up to hold people accountable. letter of the law, notthe spirit reducetheir emissions, and put Theaccountabilitywas of the law. them on this trajectory to net basicallycentred on criminal Yes, you’re right. So,there zero.It’srelevant to the set of activity. Imean, massive aretwo broad approaches to issues I’m trying to tease outin incompetence—youshould regulation. And the pendulum my book, Value(s). also be held to account for 3. He took over swingsback and forth between Thebook walksusthrough a that, and fornot acting with a from David Dodge light touch—“let the markettake on Feb. 1, 2008. number of crises youexperienced sense of responsibilityfor your responsibility”—tovery strong firsthand. You’djuststarted as institution, and some sense of 4. Theinvestment regulation thattries to anticipate Bank of Canada governor when the responsibilityfor the system, as bank filed for every contingency.And, of financial crisis began. (3) What well. Ihavetosay,when Iwas bankruptcy course,you can’t anticipate protection on wasyour worstday,personally? Governor,the major Canadian Sept. 15,2008. every contingency.Look, I’m From the spring of 2008 through financial institutions took a abelieverinregulation in the to Lehman Brothers, (4) Ididn’t series of decisions—and we 5. Theincumbent financial sector.Asinall things, knowwhen the meltdown were part of those decisions, Conservative thereare degrees. If I’m running Party, led by wasgonna come,but Iknew encouraged some of them— Stephen Harper, a50,000-person bank, those this wasimploding. Youcould that, to their credit, were in the wonaminority. people should understand what

14 APRIL 2021 /REPORTONBUSINESS theyshould and shouldn’t do. shock, and so the right monetary Thereshould be acompliance policy response wasinthe effort. Thereshould be direction they’vetaken. As well, protections in place. And there I’dagree,given thattheyhave should be accountabilityifthings fewer and fewer options to go wrong in terms of somebody’s provide stimulus when needed, compensation being clawedback thatthe shiftinthe Fed’sreaction afterthe fact. And afterthe fact function (9) toward this flexible is important, because sometimes averageinflation targeting—so it takesthree yearsfor the risk they’dhaveabit of an overshoot to crystallize, forthe scandal coming outofthis—is also to come out. And that’spart of something that’ssupported for this accountabilitymechanism. adurable recovery.We’re gonna It also changes the horizon of getaquick bounceback as things the individuals. They’renot reopen. Thequestion is, does just trying to getthrough to the it extend? And Ithink the Fed’s year end, take their bonus and policy will help it extend. On potentiallywalk. No,they’re fiscal, one of the core thingsI’m gonna live with the decisions trying to sayis, just because rates thatare made foryears. arelow and youcan borrow alot China is starting to adopt some of of moneyand spend it doesn’t the shakydebt practices thatgot in COVID-19.Canadians mean youshould. And while us intotrouble.How concerned are and others—people who there’sanimportant role for youthatChina could be the source hadrelatively lowpersonal fiscal support e,her there’salso a of the next financial crisis? risk—made the choicetotake need fordiscipline and making Yousee similar dynamics in 6. Structured measures seriouslyinthe sureithas the impact it needs to. placeinmanyjurisdictions. investment interest of others. Secondly, you Youmentioned the inequalities It has been aconcern the past vehicles— hadthis wave of volunteerism the pandemic has surfaced. Where the kind of severalyears. Most crises have funds whose come out. (8) There’slots of do youstand on the notion of their origin in fundamentally widespreaduse evidencethatvirtue begets guaranteed basic income? positive developments. So,you contributed virtue. Charitybegets charity. It Governments have taken have aChinese growth miracle, greatly to the also putareal spotlight on the extraordinary steps to support financial crisis. youhavefintech innovations, inequities in our society. This is a individuals and companies, as which spreadnew financial 7. An crisis thathas affected racialized abridgetowardthe return to a products to amuch broader set international Canadians worse, it has affected normal economy. In the U.K.,the of people. These are, by and body that women worse, it has affected the deficit, basically, will be cutin monitors large,positive developments. But and makes least well-off worse. On every half when the economyreturns theycan take on an extrapolative recommenda- metric, it has widened those to normal. In other words, the characteristic, which builds up tions about the fissures. ,tSo he expectations government is standing in forthe leverage,trees grow to the sky, world economy. around fairnessand equityin activitythatwould otherwise youborrow on the anticipation 8. In the U.K., society, Ithink, have shifted. And be there. It underscores the of futureprofits, and those Carneynotes, then twoother thingshavebeen importanceofasafetynet. risks build. Threeorfour years the National reinforced. Firstisresilience. Whether aguaranteed basic Health Service ago, anumber of aspects of wasdeluged We did not have—in Canada, income is the first, best use of the Chinese shadow-banking with offers the U.K.,elsewhere—resilient limited fiscal capacityisanopen sector were not dissimilar to the from 750,000 protections forthis type of event. debate.We’re going through asset-backed commercial paper volunteersto And secondly, sustainability. It’s what’s often called the fourth help transport sector in Canada, the SIVs (6) patients,conduct reinforcedthe issues around the industrial revolution. In parallel, in the U.S.—a point that, in my wellness checks, need to addressclimate change. we’regetting these big structural role on the Financial Stability and do errands We’ll gettoclimate in asecond. changes thatwill come with forCOVID-19 Board, (7) we and othersmade sufferers. In the book, youtalk about being the move to sustainability, and to the Chinese. They’vetaken a worried about the amount of income support alone is not number of measures since, which 9. Reaction public debt and purchases by going to support aworkerinto have reduced those risks. But function central banks. Whatconcerns those newroles. Maximizing describeshow theyare there, and we all have to monetary policy youthe most? the prospects of employment, as be vigilant. is adjusted Idefinitelyagree with the opposed to onlydealing with the Let’smove to COVID-19.How do as aresponse stancethatthe major central consequences of unemployment, youthink the pandemic might to evolving banks have takeninterms of is important. To govern is to conditions and change our values? expectations in support. Thepandemic is ahuge choose,and choosing the balance Therewererevealed values the market. disinflationary,ifnot deflationary on thatiscritical.

APRIL 2021 /REPORTONBUSINESS 15 Need to know

Let’smove to climate.Big picture, and recognizing these bigger howdowemarshal the forces of forces is part of howwecould commerce to gettonet zero? (10) accomplish it. Is it about making it somehow Do yousee yourself being a profitable to reduceemissions? participant in this process on the Thefirstthing is being absolutely business or political side?Isthere clear on the objective.Itseems one youwould prefer? we needed aSwedish teenager Imean, youknow, right nowI’m (11) to point outthe basic climate focused on sustainability, both in messinaway thatwas digestible. terms of the work forthe UN and Butifyou understand we have a forBrookfield. Pretty healthyset limited carbon budget, it means of challenges there. Part of what thatcertain investments today theycan take outalot of the Iwas trying to do with the book will not be fullydepreciatedby emissions, begin their transition is to getsome of these ideas out the time we have to be at net toward net zero,and preserve there. zero.Secondly, recognizing that and extend thatcarbon budget So you’re notruling out apolitical if the world’sgonna gettonet Is the onus on political leadersor role in the future? zero,itmeans every company on business leaderstomanage the [Laughs] I’m not surethatwas in every sector—it’sarewiring coming challenges? in the transcript, butIsaid what of the economy. So the question As in manyofthese things, it is Isaid. youask yourself in abusiness shared. Ithink thereisanonus, No,I’m asking. is, do Iplan to be around in the though, on the political side Oh, is thataquestion?Okay. next decade? Or am Igonna run to reallygrasp the scale of the Look, Trevor,you’ll be the first to my businessoff and redeploythe changeand what’s needed. The know. Youand everyone else. capital somewhereelse? Or do I fourth industrial revolution is Part of your job as abank governor think I’m separatefromsociety, going to involve aseries of mid- wastoanticipatethe future. So I and Idon’t carethatthis is what life, mid-career adjustments. want to cast forward30years and societywants?Those areyour Arewegoing to integrate our ask youfive rapid-firequestions. onlythree options. education systemand our social First, in 30 years, is theremore Your question, in thatcontext, support systemtothatbig economic inequalityorless? is aboutprofitability. And this retraining that’scoming?Those 10. TheParis More,unlessweact. is acritical point. As we shift arefundamental government climate Doesphysical moneyexist? agreement to “This is what societywants,” questions. Then with industry, established the As an anachronism. solving the problem becomes one of the questions is, how goal of reaching Have we experienced another profitable. And it’snot just do we use AI? Iuse this phrase net-zerocarbon financial crisis? because the carbon priceisgoing in the book: Arewedigital by emissions by Yes. 2050.Carney to rise overtime. It’s also because default, or arewedigital by believesthatto Have China and India consumersare increasingly design?And areweconsciously reach the target surpassedthe U.S. as economic focused on sustainability. It’s looking to empowerjobs with of a1.5 Crise superpowers? (12) in temperature because the providersofcapital knowledgeortoreplacethose above pre- [Carney is silent for14seconds] areincreasinglyrepricing the jobs?And then ameeting of the industrial levels, No. provision of capital based on two, when youlook at something netzeromustbe It took youawhile. whether you’re perceived as likethe tradearchitecture. I’ll achievedwithin I’m not fullyconvinced. The 10 to 18 years. part of the solution or part of the use the example of Shopify, easyanswerisyes. Theweight of problem. All of thatisdriving which createsanentrepreneurial 11. Greta demographyand history would toward profitability. platform forsmall and medium- Thunberg, the suggest thatwould be the case. Youanticipatethe formation of sized enterprises. They can be 18-year-old ButIdon’t think it’saforgone environmental whatyou call anew “transition” part of what could be asort of activistwho has conclusion forpositive reasons asset class. Canyou define that? globalization forSMEs. And garnered two thatcould happen in the U.S. but It’s taking assets thatare not then all of asudden youhave consecutive arenot assured. Nobel PeacePrize on the path to net zero and something thatisreducing nominations. And have we achievednet-zero putting them on thatpath. It’s inequality. It’s reinforcing emissions? judging companies and assets on dynamism in the economy, and 12. TheUnited Yes. whether theyare profitableina it’sknitting together the system. Stateshas a GDP of US$19.5 (This interviewhas been edited low-carbon economy. Thereason Shopify and companies likethat, trillion—still 30% and condensed.) to call it a transition as opposed forall their brilliance, can’t do larger than both to a green asset classisbecause, it by themselves. Governments China Trevor Cole is the award-winning author in manyrespects, green is the can’t do it by themselves, (US$12.2 trillion) and India of five books, including TheWhisky destination. Thereare aseries ’cause theydon’t have the (US$2.7trillion) King,anon-fiction coac unt of Canada’s of industrial processes where brilliance. Butworking together combined. most infamous mobster bootlegger.

16 APRIL 2021 /REPORTONBUSINESS Our commitment to equity starts at the top.

BMO is proud to be recognized as a 2021 Report on Business Magazine’s Women Lead Here honouree.With women making up more than 40% of our senior leadership roles, we areboldly demonstrating our commitment to gender equality everyday.Because, to us, leading by example starts with equity in leadership.

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discriminatedagainst based on religion. Buthere, Isaw tional programfor associates, which involvedtrain- [racial bias] clearly articulated: All the Blacks live on this ing in the Maritimes beforeheading to aforeign side of town, the whites live here, the Chinese run the Chi- posting. That year,while volunteering at the bank’s nese restaurants.” annual meeting in Halifax, she wasinvited to adin- Although she looked Caucasian and spokeEnglish fluently nerfor executives. She hesitated, worried it would (she also speaks Arabic), when she graduatedfromSaint be inappropriatetoattend an event forsenior man- Mary’sUniversity(she recalls being the youngest gradu- agement, buther male colleagues didn’t hesitate, ateinher class, at 18)and applied forjobs, the onlyposi- so she went. Thenextday,her boss, awoman who tion she could getwas minding aTim Hortons counter.The hadnot been invited to the dinner,called her into problem, she concluded, washer name: Rania Zakaria Guindi heroffice to expressher displeasure.“It led to me (when she married, she took her husband’slast name to “stop getting an averageperformancereview, with com- people asking me what my background was”). Through her ments aboutmycommunication stylebeing too dad’sbusinessaccount manager at Scotiabank, she eventu- pointed,”Llewellyn reports. Worsestill, she was allyscoredapart-time teller position while she pursued her notified thatshe wasdeemed unready forher inter- MBA. Butevenwith thatdegreeinhand, she couldn’t getso national posting and had90daystofind another much as an interview. position within the bank. Herfirst break happened at the family’scitizenship Why, afterall these setbacks, did she stay?“That’s swearing-in ceremony, whereScotiabank’sleadexecu- agood question,”she says.“I’vetaken risks within tive forthe Atlantic region wasaguest. Hermom pushed theorganization, butasanimmigrant…,”she trails her to “goask him forajob.” So at agathering thatfollowed, off, hesitates. “Mydad always said banks aresecure. Llewellyn marched up to the executive and said, “Scotiabank Iwas the primary breadwinner and youfeel that is Canada’smost international bank. Iaminternational. Iwas pressureofneedingastableincome.”But the inci- born in Kuwait and Ilived in Egypt. This is the onlybank I dent convinced her it wastime to leave the East Coast. With her husband, whoalso workedatSco- tiabank, shemovedtoTorontoand networkedfuri- ously, and in late 1999,secured an interviewfor a jobincorporatebanking. Theexperiencewith her “I MOVED INTOCORPORATE previous manager affected her so much thatshe BANKING AND IWAS AROCK STAR. told the female executive whointerviewedher,“I ICOULD BE ENTREPRENEURIAL, reallydon’t want to work forawoman. If possible, Iwould liketoworkfor aman.”Thatexecutive was AGGRESSIVE, OUTSPOKEN. IDIDN’T Marian Lawson and she told the young upstart, in HAVE TO BE SOMETHING IWASN’T” politeterms, to deal with it. “I said, ‘I reallylikeyour energy and I’ll hireyou, butIdon’t want it to turn want to work for.”Heasked her if she spokeSpanish. She outtobeamistake,’” recalls Lawson. She became retorted, “I’ll speak whatever languageyou want me to speak, Llewellyn’s mentor.“She changed my perspective as long as youpay forit.”She hadbeen ashy kid, butfrustra- on howyou can be apowerful, confident woman tion gave her chutzpah. “This is what lifedoes to you,”she and support other women,”saysLlewellyn. says on reflection. “You realizethatifyou don’t speak up, Part of the difficultyconfronted by women was youwon’t be heard.”She made enough of an impression to thereweresofew of them, according to Lawson. securea10-minute meeting. Theexecutive asked her where “Onone of my early teams in the early 1990s, we she wanted to be in 10 years, and she responded, “I want your hadthree women, and thatwas unheardof,”she job.” He laughed and sent her to HR.“I’venever forgotten recalls. That has changed overtime. “Corporate thatmoment,”saysLlewellyn. “This is whyIgiveeverybody banking has morediversitythan others, likeinvest- 10 minutesofmytime.” ment banking.” She joined the bank’scommercial development training With the move to corporatebanking, Llewellyn program, butreceivednojob offers afterwards. When she found her place. “I hadbeen an averageperformer heardofaninteresting position, she asked the hiring manager before,” she says.“Imovedintocorporatebanking whyshe wasn’t being considered. He told her,“I’m looking and Iwas arock star.Icould be entrepreneurial, foraman, and I’m looking forsomeone older.” She replied, aggressive, outspoken. Ididn’t have to be something “Well, you’ve gotme.”Hegaveher the job,but when aclient Iwasn’t.”She stayedseven years, advancing rapidly subsequentlyrequested an older,male account executive, and closing one of the division’s biggest deals, For- the manager took the account away from Llewellyn. As hap- tis’sacquisition of Aquila Networks. pens with manywomen, the pattern continued: being asked Llewellyn’s next step up the ladder wasaprogram in internal interviews whether she planned to have kids, forhigh-potential employees thatteamed them on being passed overfor apromotion in favour of aman with projects reporting to senior executives. She opted lessexperience. Thefeedback she gotwas thatshe wastoo to work on amulticultural banking programunder outspoken and aggressive, butshe says being direct is simply the bank’svice-chairman, Sarabjit Marwah (nowa part of her culture. “The challengeI’vehad throughoutmy senator).Their first interaction could have ended career is that, because Idon’t have an accent and don’t look badly. He asked her pointed questions aboutthe likeavisible minority, people assume Ifitacertain mould. financial products forimmigrants she washelping ButIthink and approach thingsdifferently.” develop,and she challenged him right back. Buthe Herhopes rose when she wasaccepted intoaninterna- wasimpressed. “Insteadofsaying, ‘I’ll look intoit,’

APRIL 2021 /REPORTONBUSINESS 23 she immediately offeredthoughtful arguments,”Marwah business. To winnowdownthe unit’snumerous ini- says.“Youdon’t often see thatkind of pushback to senior tiatives, Llewellyn staged an internal Dragons’ Den– executivesbyarelatively junior employee.”When the proj- stylesession whereeach team hadtogiveapitch for ect resulted in the creation of amulticultural banking divi- their project. “If you’re going to transform abusi- sion, Llewellyn gotthe chancetoleadit, but, givenshe would ness, youneed to be clear and crisp around prioriti- be reporting to awoman, she interviewedeverybodywho zation,”saysAdam Swinemar,who led digital bank- workedfor her potential boss. “I actuallytold her,‘If you’re ing and customer experienceinthe division and looking forayes person, please don’t hireme,’” Llewellyn recentlyjoined Llewellyn at Laurentian as senior VP recalls. “‘Butifyou’relooking forsomeone whowillshake of digital banking. “Four yearslater,Ican still tell thingsup, challengethe status quo,Ithink we can have some youthe three thingsthataproject can deliverthat fun.’” areimportant forthe customersand forthe bank.” It wasapivotal career point, offering her an opportunity When Lawson retired in 2018,Llewellyn took to build abusinessfromscratch with adiverse team she overpart of her role. Asubsequent boss, James selected. Nowthatshe wasmoving in higher executive ech- Neate, gave her something beyond mentorship and elons, she became moreaware of howshe came acrosstooth- coaching: sponsorship.“It wasamazing howsome- ers, with the help of acoach. “Itwas likeshe putamirror up one whohas credibilityand influenceinthe organi- to me: ‘When youhear something thatpushes your button, zation can changepeople’s perspective of you,”says here’swhatyou think and this is what people see.’” Llewellyn Llewellyn. As asenior male executive, he knewhow wasgrateful forthe insights. “Atsome point, when youget the institution workedand could give her exposure manyconsistent data points, it’snolonger aboutthem, it’s and opportunities. “Hewas very direct with me, aboutyou. I’vetaken thatintomycoaching and mentoring and Istarted to learn what Ineeded to do around of others.” thattable with the big boys and what Ineeded to Llewellyn performed well and when she wasready to move hold back on.” on, opportunities abounded. She took time to makeadeci- By this point, her aspirations were unbounded, sion, leading amale executive to say, “Rania, it’slikewetook buteach time she considered leaving foraposition youshopping fordresses and youdon’t likeanything you elsewhere, an interesting opportunityatScotiabank see.”This wasjust 10 yearsago.She opted forarole at Roynat came along. Butwhen she gotacall from ahead- Capital, alow-profile subsidiarythatprovidesalternative hunter forLaurentian in August, she wondered if business financing. Within 18 months, she wasthe division’s thatmight be achallengetoo far. president and CEO,and finallyhad the powertoput her con- Founded in 1846 as the Montreal City and Dis- victions aboutdiversityand inclusion intopractice. All new trictSavingsBank by agroup of prominent resi- recruits hadtobeevenlysplit between males and females. dents, Laurentian has long been alargely regional Themanagersknewthatiftheynominatedaman, Llewellyn institution offering banking services to individuals would be calling to understand howtheyreached the deci- and businesses. Butasbranch banking declined sion.Identifying and grooming diversetalent is her special and Laurentian’s shareofthe consumer market strength—her “superpower,”she calls it. “Mybrand [atSco- dwindled, the bank found its profits fluctuating. tiabank] wasthatIwas an amazing talent magnet. If Ilet Thereturn on equity, akey metric forinvestors, had someone leave, Iwould getcalls asking, ‘Is theresomething been stuck around 12% between 2011 and 2015,com- wrong with thatperson?’” paredto16%-plus forthe Big Six. Llewellyn’s owncareer-long experiencehas made her François Desjardins, wholikeLlewellyn started keen to avoid gender- or ethnic-based assumptions. “Putting as apart-time bank teller and workedhis wayup men and women intoboxesactuallyannoys me,” she says.“It for29years, took the helm in 2015 and promptly starts at such ayoung age.”When her daughter came home announcedanoperational overhaul. “Laurentian one dayexcited because her gym teacher said agirlwho has been saying it will do manythingsinthe past scored agoalwould gettwo points while aboy would get and not necessarilycoming to the Street with the onlyone,Llewellyn wasirked. This, afterall, is awoman who results theypromised,”Desjardins told investors, playscompetitive squash and notes she wasthe first woman assuring them he would end thatfrustrating record. to play forthe men’s team at Toronto’sposh GraniteClub. He set aboutexpanding commercial banking and Llewellyn is abig believerinhashing outsuch issues. “To the B2B Bank, which provides retail banking prod- battle unconscious bias, we need to have open conversa- ucts to financial professionals—the businesses tions,”she says.“People have started shying away from that responsible forthe bulk of Laurentian’s profits. But because they’resoworried abouthurting someone’s feelings, the big job wasfixing retail banking by moving away butIcan’t challengeyour wayofthinking if Idon’t knowwhat from teller services to digital platforms and simpli- you’re thinking.” fying the portfolio of consumer offerings. He shut- Back in 2007,when Llewellyn leftcorporatebanking, Law- teredroughlyhalf the branches and transformed son jokinglyextracted apromise thatLlewellyn would come the otherstoadvice-only“financial clinics.”Other back to work with her again. That opportunitycame in 2015 banks aremaking similar shifts, butLaurentian’s when Lawson took overglobal transaction banking, aunit transition wasuncommonlyrapid. “Heset areally thathelps businesses managepayments. An area within the aggressiveplan, butit’snot likeaswitch thatyou division needed arevamp and Lawson wanted someone she turn on andoff,”saysLemar Persaud, an analystat could trust. “Rania dug in,”Lawson recalls, reassessing the CormarkSecurities. “Thathurt them.”Laurentian numbers, spending time with junior employees and cus- lost marketshareindeposits and loans, including tomers, and travelling to branches to betterunderstand the mortgages.

24 APRIL 2021 /REPORTONBUSINESS SPONSOR CONTENT Advertising feature produced by Globe Content Studio with .The Globe’seditorial department was not involved. Changestarts at the top: Advancing gender equality

TransAlta Corp. has “Weknow that by raising set ambitious goals to awareness about equity, diversity promote diversityand andinclusion at work, we inclusion across its create space for our employees to unlock their potential, to be workplace highly engaged, and to reflect the diversity in the communities MORE CANADIAN in which we operate, which COMPANIES are realizing ultimately leads to an enhanced the broad benefits of gender employee experience,”says diversity across their operations Jane Fedoretz, executive vice- —including in decision-making president of people, talent and roles on boards and in senior TransAlta is helping women advance their transformation at TransAlta. careers at the company including the management —and taking action. appointments of Shasta Kadonaga (top left) In February, TransAlta received Arecent KPMG study shows to senior vice-president of its shared services recognition from Diversio’s women made up more than a business; KerryO’ReillyWilks (top right) to globally recognized certification third of all new appointments to executivevice-president of legal, commercial platform for its equity, diversity and external affairs and Jane Fedoretz (bottom the boards of Canada’s100 largest right) to executivevice-president of people, andinclusion activities.The publicly traded companies since talent and transformation. certification recognizes the the “comply or explain” gender company’sefforts to measure, diversity mandate came into effect track and continuously improve its in 2014. The KPMG survey shows executive officer Dawn Farrell, commitment to enhance equity, equity, diversity and inclusion. 96 per cent of boards have at least who steps down on March 31 after diversity and inclusion for all The advancement of women onefemaledirector, up from 67 almost adecade in the role. people,”says KerryO’Reilly Wilks, and diversity will continue to be percentin2014. The company uses gender data executive vice-president of legal, acore value and top priority for TransAlta Corp., one of to identify gaps, develop solutions commercial and external affairs. TransAlta under new president Canada’slargest publicly traded and measure impacts to meet its “This includes having the tough and CEO,John Kousinioris. renewable independent power diversity and inclusion goals. It conversations to address how “The persistent inequities producers, sees gender diversity has committed to achieving 50 to eliminate systemic barriers around the world underscore and inclusion as acompetitive per cent female membership on that prevent diverse groups from the urgent need to address and advantage and part of its broader its board by 2030, up from 42 per thriving.” alleviate racial, ethnic and other environmental, social and cent today. It also has atarget for In 2020, TransAlta also started tensions, to remove barriers that governance strategy. its entire workforce of about 1,475 measuring its equity, diversity and perpetuate these inequalities, and “TransAlta firmly believes people to be 40 per cent female by inclusion practices by conducting to promote an inclusive working that true diversity is good for the 2030, up from approximately 22 avoluntarysurvey that collected environment for all employees economy; it improves corporate per cent today. data on diversity demographics of where everyone belongs and can performance, drives growth and “InOctober 2020, TransAlta its people and their thoughts on bring their authentic selves to enhances employee engagement,” adopted aDiversity and Inclusion equity and inclusion within the work,”says Mr.Kousinioris. says TransAlta’soutgoing chief Pledge to emphasize our company.

VP,IT, PEOPLE &CULTURE

CFO &EVP,OPERATIONS

WOMEN IN LEADERSHIP VP,PLANNING &ANALYSIS

HAVE ALWAYS VP,MARKETING BROUGHT OUR COMPANY TO DIRECTOR, SUPPLYCHAIN NEW HEIGHTS. &SOURCING

DIRECTOR, CONSUMER Fire &Flowerisproud to be included on MARKETING the Women Lead Here list. Here’s to all the strong and talented women on the team who help makeFire &Flowerwhat it is,and to all the other recipients of this honour. DIRECTOR, MERCHANDISING

DIRECTOR, SHOPPER MARKETING

About Fire &Flower LEAD PROJECT MANAGER Fire &Flower’s leadership team combines extensive experience in the cannabis industry with strong capabilities in retail operations.And some truly remarkable women. CORPORATE CONTROLLER “IT’S JUSTT NOT

JODY Kuzenko TOREX GOLD RESOURCESINC. “Let’sbehonest: Mining has been asuper- ENOUGH sexist industry.But 30% of our board, 40% of our executive team and half of our corporate FIVE CEOS ON WHAT officestaff arewomen. We didn’t set outtodo THEIR COMPANIESARE DOING that. We set outtohirethe best and the bright- TO ADVANCE DIVERSITY est—people whocome at thingswith different AND INCLUSION—NOTJUST perspectives. AROUND GENDER That’s whycompanies need to hirefor com- petenceand capabilityand curiosity, insteadof INTERVIEWS BY from ‘the club.’ That’s what we’redoing at our DAWN CALLEJA,A, mine in Guerrero, Mexico. Right now, we have ROSEMARYCOUNTER,UNTERUNTER,, SUSAN KRASHINSKYY 16%female representation. Butthere’samajor ROBERTSONAND opportunitythere. Theplayfor an organiza- STACYLEE KONG tion likeoursistoworkongetting female lead- ership in the production area, in the operation area—atthe front end of the pipeline. Give me some truck drivers,operators, maintenance ILLUSTRATIONS people,because that’swhereour next supervi- BY REBECCA sorsand managersare.It’ll take abit longer,but STRICKSON they’ll be so much moreready and effective by

28 APRIL 2021 /REPORTONBUSINESS ANNE Fandozzi RITCHIE BROS. AUCTIONEERS “I’m an engineer by training—bachelor and mas- ter’s—and that’safairly male-dominatedfield, still. Theindustries Ikeep getting attracted to arealso male-dominated. Igot my MBA, and Ispent 11 years in automotive, at Ford and Chrysler.Then Idid a ride-sharing startup.The last companyIwas CEO of wasincollision repair.And nowRitchie Bros. It is an incredible company. That said, there’sa lot of work to be done. Evenonthe gender side,we knowwehavealong waytogo. Theworkaround the time theyget there. gender diversitystarted along time ago. Canada Iwould also sayyou’vegot to find some wasvery much focused on this issue at the board heroes. In our case,wefound two. One is a leveland took it much moreseriouslythan other truck drivernamed Estella, whotook the job, countries did. Our long-time chair is female—Bev- erleyBriscoe. When my predecessor,RaviSaligram, lovedit, raised her twoyoung daughters, and came in, he took gender diversityvery seriously. He nowshe tells other young women in the com- recruited our CFO, Sharon Driscoll, and appointed munity,‘Youneed to be atruck driveratthis Kari Taylor as president of U.S. sales. And as I build outthe management team, we’veadded more company.’Our other heroisatrainer named women. Butifyou look down in the organization, as Jonathan. He took it upon himself to work with in anymale-dominatedfield, thereare gaps. So we these women and say, ‘No, youbelong here. I have along waytogo. want youtobehere.’Now,about20% of our Last year,when the Black LivesMattermovement gained momentum, we hadconversations about haul truck drivers on-siteare women. That’s whyweweregoing to prioritizediversity. And we what Imean when Italk aboutfilling the pipe- formed a100-person volunteer Black LivesMat- line from thatend. Thereare lots of women in terEmployeeResource Group,who Igivesomuch credit fordriving this forward. We just hadBlack mining whoworkinfinanceand HR,but the History Month, and it kicked offwith an incredible credible jobs arethe ones thattouch the metal learning session. Iused it as arallying cry to say, and the money—the operations. So,mygoal ‘Look, we started on the journeyofgender acouple is always to getyoung women intothose jobs, yearsago.Now we’recelebrating cultural diversity.’ We arenot yetatthe measurement stage, can- because those arethe futureleadersofmining didly, because our internal people systems arenot companies.” great. They need aspiffing .Sorup ight now, it’s

APRIL 2021 /REPORTONBUSINESS 29 moreigniting people’s passion and understand- ing of what’s right. Asking thatinterviewslatesbe diverseinnature—doing the basic blocking and tackling, if youwill. Formeasawoman, as an immi- grant, it’ssecond nature. It’s critical. TheBlack LivesMattermovement hit me,eventhough I’m a whitewoman, very personally, very deeply.AsJews, we were political refugees when we leftRussia. The idea thatsections of the population arenot treated as othersare—it spoketomeonapersonal level. Itry to give back whereIcan. Ivolunteer as a mentor with aprogram called Signature, aimed at women leadersone rung belowthe C-suite attempting to break through the glassceiling. A woman reached outtomerecentlybecause she’s DARRYL considering acareer change. She’s lookingatthis opportunity, and she’s perfect forit. Butshe’s like, ‘I don’t know—Ifeel likemaybe Ishould take aclass.’ Isaid to her,‘This is aclassic gendered approach. Yo udon’t even realizeit’shappening. Yo uare per- White fect forthis job.’ So howdoyou break through? BANK OF MONTREAL And men have their blinderson. We all have these biases thatwebring forward. Onlybytalking about “I think we should recognizethat We said we’d have 40% women in them can we bring them outofthe shadows.” progress on diversityand inclusion senior leadership rolesby2016— is being made.The pointI’m trying and we achievedthatgoal. Other- to makeisit’sjustnot fast enough. wise, youcan alwaysmakeexcuses Howdoweget there? By setting forwhy it’ll be next year,nextyear, targets and measuring results. next year. Let’sstart in the early 1990s, In 2017,weset whatwecalled our when one of my predecessors,Tony Vision 2020 DiversityStrategy—to Comper,established atask force have 40% to 60% representation on the advancementofwomen of women in senior leadership. at the bank. That wasabig deal. By the end of 2020,itwas 41.1%. Then, in 2012, Ithink we were the Now, 45%ofmydirect reports are first to set the goal of 40% women women, including the heads of two in leadership rolesby2016. One of of our four operating groups, and the things Ifound really important 45%ofthe board. Whereare we is thatwedidn’t say40% one day. going tomorrow?Ithink gender par-

“Mining has areputation forbeing an old, anti- MARIE quatedindustry,but formostofmytime at Lundin, the headoffice has hadlots of women. Maybe that’sfromour Swedish roots—because in Sweden, even the mines have 20%women. Inkster Butour inclusion policy neverhad targets LUNDIN MINING before, and last year we asked, whydon’t we? Nowwe’re introducing atargetof30% women on the board. We just added Karen Poniachik, whoused to be Chile’s minister of mining. In the mines, manypeople aretrying to improve their gender ratios, so there’salot of competition to hirewomen with techni- cal backgrounds. We have training programs and workshops, forexample,inheavy truck- ing licensing, and we encouragewomen to enrol so thatwhen positions open, theyhave the qualifications to apply.Insome locations,

30 APRIL 2021 /REPORTONBUSINESS ityand inclusion will continue to be on the awareness side.But here, afocus through our Zero Barriersto we’resaying awareness isn’t any- Inclusion strategy,which includesa whereneargood enough. We need lotofother,moregranular ruleson to actually raisethe bartoaccount- the topic of intersectionality. We ability. talk about representation of Black, As formandatedquotas, Ithink Indigenous,people of colour,Latino the problem with regulation is that and LGBTQ+ employees,and we reporting canend up being more setspecific objectives foreach. In important than actually getting the MEGHAN some cases,theyare nowherenear cultureand performanceright. And wheretheyneed to be.Inother Ithink you’ll effectively getamini- cases,we’redoing pretty well. mum bar. Ithink it’s moreimpor- I’ve had conversations with com- tant to letpeople aim higher and paniesthatare stymied by diversity notlet the ethosbecome,‘We do Roach and inclusion. We don’t pretend to this becausewehave aregulatory have the answers foreverybody. requirementtoget over.’ ROOTS ButI’ll giveyou one example: If Ialsodon’t find finger-wagging “I spent the bulk of my career in private equity, and your head of human resources is to be particularly inspiring. Itend to it wasastruggle to find role models. Ihavetwo the spokespersonfor an ideal we go back to the science, and remind young daughters, and it’svery difficult to find your mayormay notachieve,then what people thatdiverse teams are career path if youdon’t have someone to look up to you’ve gotisanHRproject.We stronger teams and producebetter have aperformancecommittee— results. We canprove thatinour and think, Howdid they getthere? the 50 most senior leadersatthe organization. We canprove thatin Before Igot to Roots, the C-suitewas 75%male. bank—thatmeets every quarter. other organizations.It’snot justthe Now, 75%ofour management team arewomen. Therewas amomentafew years rightthing to do—it actually pro- It’s nicetobepart of abrand whereyour team is ago when Ilooked at our scorecard duces better outcomes. Without reflective of the customer base. We still have alot and said, ‘Wait aminute—it doesn’t question. of work to do,but we’retrying to lean intoitand have anything on equity, diversity And it’s important to recognize go beyond gender.WehaveaDiversity, Equality, or inclusion. If this is really abusi- progress,and to recognizethat Equityand Inclusion Council thatincludes not only ness priority, it has to showuphere, progress is notyet good enough. me and other senior leaders, butalso people from too, notjustinour purpose state- Otherwise, youget companiessay- our stores and distribution centre. So it’smadeup mentand notjustinthe narrativeof ing, ‘Gee,this is justtoo big of ahill the chiefHRofficer.’All of asudden, to climb,and all Ican seeisfailure. of employees from very different backgrounds and people one,two,three levels down So whybother trying?’ That’s not places in the company, and thatbringsthis newand aresaying, ‘This is serious.’ Notall very inspirational. Instead, recog- different decision-making to the table. of those reports arebeautiful. But nizethe progress you’ve made, When roles come open, we’retrying to levelthe they’re specific and transparent. then ask:Why isn’t it good enough? playing field in terms of hiring by using case stud- We’reasignatory to the Black- Whatcan we do differently?Ifyou ies. At manycompanies, the interviewprocess is North Initiative. Ithink the work don’t do that, you’re probably not personality-driven—chatting with acandidate to they’re doingisreally important, in going to getbetteratit. Which is,of makesuretheyfitfromacultural perspective.The part becausethere’ssomuch to do course,the objectivefor all of us.” real question is, can theydothe job?Case studies puteveryone on an equal footing. So if I’m hiring somebodyfor finance, Imight ask them to look at there’snot alot of turnover, so when youdo my financial atst ements or analystreports and give have an opportunity, youhavetotakeadvan- me feedback on howtheymight do thingsdiffer- ently. You’re reallyfocusing on what theycan do, tage.Wemakesurepeople knowwe’re open to as opposed to potentiallyfocusing on what school hiring women, thatwewant women. theywent to or whotheyknow. People have to make Younot onlyhavetohirenew women, but an effort to think abouttheir ownlimitations and the limitations of their network.DoIhavepeople youalso have to keep the ones youhave. We within my network whoare diversefromagender try to offerflexible work arrangements that perspective, from aracial perspective?Ifyou don’t, aresupportive of women and parents. Some- youshould reallybelooking at working with some times it’sthe basic things: If you’re in an under- of the agencies and companies thatare focused on helping youfind them. ground work environment, youneed facilities. Manyofmytop executiveshavekids. So dur- Therehas to be enough bathrooms. And zero ing the pandemic, we’retrying to give people the tolerancefor discrimination or harassment— flexibilitytobalancetheir livesand their work.It’s respected if youcan’t take acall because youhave everyone says theyhavethat, butnot everyone to pick up your kids or pause because your child follows through. We won’ttolerateit. needs help with school. We’reall struggling with We want women to see thatifyou work hard the same issues. And we owe it to other people to at Lundin Mining, youcan achieve the highest showthatit’sokaytosay you’re not okay. Iwon’t pretend Ihaveall the solutions, butIthink officeinthe company. If youcan see it, youcan the morewemakeitanormal part of the conversa- be it.” tion, the moregreat ideas will come up.”

APRIL 2021 /REPORTONBUSINESS 31 METHODOLOGY To create the 2021 Women LeadHerelist, Report on Businessmagazine evaluatedpubliclytraded companies in Canada with annual revenues greaterthan $50 million. Assessments were done during November WITH AN and December of 2020,and represent the stateofeach companyduring AVERAGEOF thattime. Our researchersevaluatedeach company’stop three tiersof executive leadership (Tier 1: CEO or equivalent; Tier 2: C-suite, presi- 44% WOMEN dent or equivalent; Tier 3: generallyEVP,SVP or equivalent), measur- COMPRISING ing the ratio of female-identifying to male-identifying individuals at THEIR EXECUTIVE each tier.Wecontacted each evaluatedcompanybyemail to confirm RANKS, THESE the accuracy of the data.Wethen applied aweighted methodology.We COMPANIES also took intoaccount the company’sprofitability, revenue growth and OFFER A three-year return using the most recent financial tada available. The BENCHMARK diversityofanexecutive team wasalso considered, as wasthe year- FOROTHERS over-year improvement in female representation, whereapplicable. We then assigned each companyascore and applied afinal screen to the topquintile: Companies with fewer than 30% of overall executive roles held by women were excluded, as were companies with onlyone woman-identifying executive.

TOTAL % OF WOMEN HONOURED YEAR-OVER-YEAR % COMPANY INDUSTRY FEMALE CEO EXECUTIVES LAST YEAR WOMEN CHANGE

AbsoluteSoftware Technology Yes 33 No Increased

AcuityAds Holdings Communications No 31 No Increased

Algonquin Power&Utilities Utilities No 33 No Increased

Amerigo Resources Mining Yes 100 No Increased

Aritzia Retail No 67 Yes Decreased

Atrium Mortgage Investment Financial Services No 43 No N/A

BallardPowerSystems Industrial Products No 33 Yes Flat

Bank of Montreal Financial Services No 41 No Increased

Bank of Nova Scotia Financial Services No 40 No Increased

BMTCGroup Retail Yes 40 Yes Flat

Boardwalk REIT Real Estate No 45 Yes Increased

Capital Power Utilities No 43 Yes Increased

CIBC Financial Services No 34 No Increased

Cineplex Media No 36 No Increased

Co-operatorsGroup Financial Services No 46 No Increased

Corus Entertainment Media No 46 Yes Increased

Dollarama Retail No 33 Yes Flat

Dream Real Estate No 44 Yes Decreased

Finning International Industrial Distribution No 30 No Flat

Fire &FlowerHoldings Cannabis No 36 No N/A

32 APRIL 2021 /REPORTONBUSINESS TOTAL % OF WOMEN HONOURED YEAR-OVER-YEAR % COMPANY INDUSTRY FEMALE CEO EXECUTIVES LAST YEAR WOMEN CHANGE

First Capital REIT Real Estate No 63 Yes Increased

First Majestic Silver Mining No 31 Yes Decreased

First Quantum Minerals Mining No 50 No Increased

Fortis Utilities No 38 Yes Flat

Golden Star Resources Mining No 44 Yes Increased

H&R REIT Real Estate No 42 Yes Increased

Indigo Books &Music Retail Yes 50 Yes Decreased

Intact Financial Financial Services No 34 Yes Increased

ISC Business Services No 44 Yes Flat

K-BroLinen Business Services Yes 67 Yes Flat

Killam Apartment REIT Real Estate No 55 Yes Decreased

Torex Gold is leading the way on diversity: 40% of our Executive Team and 30% of our Board of Directors are women.

We are proud to recruit the best and brightest who have the drive and capability to create positive change. Team members across the company are becoming the next generation of leaders. Not because they are female, but simply because they are great.

Torex Gold is aCanadian gold producer, responsibly mining in Mexico.

TSX TXGtorexgold.com TOTAL % OF WOMEN HONOURED YEAR-OVER-YEAR % COMPANY INDUSTRY FEMALE CEO EXECUTIVES LAST YEAR WOMEN CHANGE

Laurentian Bank of Canada Financial Services Yes 50 Yes Increased

Lucara Diamond Mining Yes 75 Yes Flat

Lundin Mining Mining Yes 36 Yes Flat

Magellan Aerospace Aerospace No 33 Yes Flat

MainstreetEquity Real Estate No 50 Yes Flat

MavBeautyBrands Packaged Goods No 50 No N/A

MCAN Mortgage Financial Services Yes 60 Yes Increased

MDF Commerce Technology No 45 Yes Increased

Melcor Developments Real Estate No 38 No Increased

MiravoHealthcare Health Care No 33 No N/A

Morneau Shepell Business Services No 43 No N/A

Mountain ProvinceDiamonds Mining No 38 No Increased

MTY Food Group Restaurants No 50 Yes Increased

National Bank of Canada Financial Services No 36 No Increased

Northland Power Utilities No 31 No Increased

Organigram Holdings Cannabis No 38 No N/A

PasonSystems Energy No 30 No Increased

Perpetual Energy Energy Yes 33 Yes Decreased

PointsInternational InteractiveMedia No 42 No Increased

PollardBanknote Leisure No 33 No Increased

Prairie Provident Resources Energy No 40 Yes Flat

PrairieSkyRoyalty Energy No 50 Yes Flat

Reitmans (Canada) Retail No 57 Yes Decreased

Ritchie Bros. Auctioneers Business Services Yes 33 No Increased

Roots Retail Yes 70 Yes Increased

Shopify Technology No 31 No Increased

Slate Asset Management Real Estate No 40 Yes Increased

SmartCentres REIT Real Estate No 30 No Increased

Sportscene Group Restaurants No 36 Yes Flat

34 APRIL 2021 /REPORTONBUSINESS TOTAL % OF WOMEN HONOURED YEAR-OVER-YEAR % COMPANY INDUSTRY FEMALE CEO EXECUTIVES LAST YEAR WOMEN CHANGE

Summit Industrial Income REIT Real Estate No 40 No Increased

Sun LifeFinancial Financial Services No 43 Yes Increased

Telus Telecommunications No 36 No Increased

Timbercreek Financial Financial Services No 67 No N/A

TorexGold Resources Mining Yes 45 Yes Increased

Total Energy Services Energy No 33 No Increased

TransAlta Utilities Yes 38 Yes Decreased

Transcontinental Business Services No 46 No Increased

Urbana Financial Services No 67 No N/A

YellowPages Communications No 33 Yes Decreased

ZoomerMedia Media No 64 No Increased

Leaders should be defined by what they do, not what they are.

ISC is proud to be among those companies recognized for leading the wayfor the next generation of female executives. We’re committed to ensuring strong representation across the board, and on the Board.

ISC is the leading provider of registry and information management services for public data and records.

company.isc.ca TSX: ISV When it comes to the lucrativeU.S. drug

36 APRIL 2021 /REPORTONBUSINESS By Sean Silcoff PHOTOGRAPH BY LYNDON FRENCH

SayEhhhh .S. drug discovery market, Canadians areeverywhere

Canadian biotechnology is hav- dent of StanfordUniversityand ing amoment: Last year sawthe the former chief scientific officer three largest IPOs ever by domestic of Genentech—is Canadian, too. therapeutic developers, including (NiceOrder of Canada pin, Marc.) AbCelleraBiologics. TheVancou- Well, so areJohn Hamer and Kier- verstartup is nowthe country’s sten Stead, managing partnersof most valuable biotech company SanFranciscoventurecapital firm ever.Victoria’sAurinia Pharmaceu- DCVC Bio,which recentlyturned ticals received regulatory approval aUS$18.2-million investment into in the United States foralupus aUS$1.1-billion-plus fortune. The drug this year,becoming one of the companytheybet on?Canada’sown few Canadian developerstotakea AbCellera. treatment to marketwithoutaBig There’sSylvie Gregoire, past Pharma partner in the lucrative president of ShirePLC’s rare-dis- Americanmarket. Canada finally ease unit, and Sanofi SA’s former has severalcompanies with poten- CEO Chris Viehbacher,plus at least tial to grow intopharma giants and adozenother Canadians in top turn our lifesciences sector intoa roles with U.S. biotechs. Thereare global contender. moreinEurope,likeJames Sabry, As it turns out, Canadians have global head of pharma partnering been part of the biotech revolution with Roche Holding AG. foralong time,just not…here. Youget the picture. We’renot South of the border,Canadians talking aboutabrain drain, buta occupymanysenior roles in one of full-scale brain transplant. the world’sleading value-creating “The worldofbiotechnology and sectors. Wall Street’stop biotech health care, and franklyWall Street investment banker is Canadian, as itself,isbuilt with Canadians,”says Born and is its top-ranked analyst. Thechair- MarcHarris, an American who educated in man of COVID-19 vaccine maker heads research at Wall Street invest- Quebec,Thomas Moderna? Canadian. So is the chief ment bank EvercoreISI and employs Hudson is now scientific officer of biopharmaceu- twoCanadian biotech analysts, Liisa chiefscientific officerfor tical giant AbbVie. Bayko and Josh Schimmer. AbbVie in Perhaps youwereaware that Canadians “areprobablyover- Chicago MarcTessier-Lavigne—the presi- represented [in senior U.S. biotech

APRIL 2021 /REPORTONBUSINESS 37 her clients areprimarilyoutside NewYork, being aflight away from the cityisn’t reallyaproblem. In fact, it took Chutterlessthan aday to convinceher bossthatmoving to Torontowouldn’t be an issue. She wasright: Chutterhas workedon mergersand acquisitions worth a totalofUS$85 billion, and another US$70billion in capital raises. She’s also highlyregarded by cli- ents. “Todayshe is the topofthe top people in this industry,” says fellow Canadian Noubar Afeyan (moreon him on page 40), whose Flagship Pioneering has tapped her forat least sevenIPOsofportfolio com- panies, including Moderna, as lead or co-leadbanker. “She’s agreat companypicker,” says Clarissa Desjardins, former CEO of Montreal rare-disease drug developer Clementia Pharmaceuti- cals, which used Morgan Stanleyto leadits 2017 IPOand advise on its 2019 sale to Ipsen SA.“Within Mor- ganStanley, her name echoes in the Jessica Chutter hallways,and all the junior bankers roles], butIthink that’sbecause Chair,biotechnology investment arethrilled to work on her team. youget attracted to greatopportu- banking, Morgan Stanley When you’re thatgood, youdon’t nities, and there’sbeen the fluidity Jessica Chutterisararityfor aWall have to move to headoffice—you in terms of one’s abilitytogotothe Street banker.For one,she’s worked can live whereyou want.” U.S.,”saysOttawanativeJessica forthe same company, Morgan Similarly,Chuttersaystop inves- Chutter, Morgan Stanley’schair Stanley, formorethan 30 years. tors areindifferent to wherethe of biotech investment banking. In Despiteofferstocoverhigher-pro- opportunities arelocated. That other words, when it comes to bio- file sectors, she stuck with biotech, bodes well forCanadian biotechs. tech, Canadians ownthe podium— even when it wasamuch quieter In the past four years, she has led butmostcompetefor Team USA. field, because she wanted to do IPOs forthree of them, which were Whatfollows is an introduction to good in society. “I knowitsounds a backed by big foreign investors: some of the most successful Cana- bit schmaltzy,but it’swhatI’vebeen Clementia, Repare Therapeutics dians operating at the topechelons most excited about,”she says. (ran by Desjardins’ husband, Lloyd of American biotech. Canadians can Most surprisingly, forthe past Segal) and Fusion Pharmaceuticals be proud thatsomanycompatriots 26 years, Wall Street’stop biotech- Inc. “I think we’reatapoint where, have reached the pinnacles of suc- nology investment banker—a key fortunately,capital is blind to geog- cess in the dynamic sector.Inrecent adviser on seminal industry deals raphy,”Chuttersays. years, the field has deliveredsignifi- including Centocor Inc.’s US$5- Chuttergrew up in Ottawa’s east cant gains in human health—along billion sale to Johnson &Johnson end, the middle-classdaughter of a with shareholder returns—thanks in 1999 and Moderna’s2018initial construction consultant father and

to developments in areas such as public offering—hasn’t actually aDutchmother whohad come to NDON FRENCH monoclonal antibodies, precision workedonWall Street. Instead, Canada on an assignment with the LY oncology and gene therapy. she’s been based in Toronto, where Netherlands embassy.Chutterwas RIGHT)

Butitshould also give us pause, her husband, Derek Berghuis, ran anationallyranked tennis player ;( particularly afteraslowvaccine radio station 680 News forRogers in her teens, and studied econom- TS rolloutthathighlighted Canada’s Communications. ics and businessatMcGill Univer- BER RO meagre domestic manufacturing Howdoes she do it? In non- sity, whereaprofessor encouraged capabilityand lack of anchor phar- COVID-19 times, it involvedalot of her to work on Wall Street. She maceutical giants. Whatcaused travel, typicallythree days aweek, started at Morgan Stanleyinthe manyofour best and brightest to to Morgan Stanley’sManhattan early 1980s, working in NewYork move away?Whathas the Canadian offices and to see her manyBoston- and SanFranciscobeforemoving to economylost with their departures? based clients (a colleague oversees Torontoin1995. “The opportunity And, perhaps moreimportant, can Morgan Stanley’sWest Coast bio- wasinthe U.S. at the time—there we getthem back? tech group). When youconsider wasjust reallynoquestion,”she PHOTOGRAPHS (LEFT) JENNIFER

38 APRIL 2021 /REPORTONBUSINESS says.“Iwould not have been able to continue acareer if Iwerefocused on Canadian biotech.” Biotechnology wasstill an early- stageindustry.Thatmeant she han- dled financingsfor arangeofhealth sciences companies, including clini- cal research organizations and med- ical devicemakers. Butasresearch- ersmapped the human genome and made other breakthroughs, inter- est in early-stagedrug developers heatedupinthe late 1990s. She’s been afull-time biotech investment banker ever since. Chutterconsidersherself asto- ryteller.Her job is to translate deep scienceand the potential of break- To mHudson came calling again. through drugsintoacompelling, Senior vice-presidentofR&D and chief Hudson nowoversees 11,000 easilyexplainable tale forinvestors. scientific officer, AbbVie Inc. employees as chief scientific offi- “Youshould be able to reduceevery TomHudson is one of Canada’stop cerofAbbVie,the U.S. biophar- vision and every businessplan to a biotech exports to the U.S., buthe maceutical giant thatwas spun out very succinct articulation of what has imported some of thatknowl- of AbbottLaboratories eight years acompanyisdoing,”she says.”If edgeback to his home country. ago. Everthe builder,Hudson has youcan’t do that, there’sprobably Afterearning amedical degreeat overseen the expansion of AbbVie’s something flawedaboutthe busi- Université de Montréal and doing franchise in cancer treatments nessplan.” post-graduate work in immunology and immunology,splitting time Forher,the deal thatchanged at McGill University, the native of between his home in SanFrancisco everything wasadvising Phar- Jonquière, Que., movedtothe Bos- and AbbVie’s headquartersinthe masset during its US$11.1-billion tonareainthe early 1990s to join the Chicagoarea. acquisition by GileadSciences. most exciting scienceproject of the He could have continued to do Until then, biotech companies typi- day: mapping the human genome. discovery work in Canada, “but callybecame takeovertargets only He did post-doctoral studies and Iwas also interested in learning oncetheir drugswereapproved served as assistant director of the moreaboutthe laterphases of drug and commercialized. By contrast, WhiteheadInstitute forGenome development,”Hudson says.For Gileadwas willing to payhand- Research at the Massachusetts the most part, thatworkhappens somelyfor acompanyjust entering Institute of Technology in the 1990s. outside Canada. He wasn’t sureif late-stagehuman efficacy trials for Then he came back, keen to apply Big Pharma would be constraining ahepatitis Ctreatment. Thedeal some of the lessons from his pio- compared to academia, “but actu- was“abig wakeup call” because neering work to drug discovery allyitwasn’t the case,” he says. it meant investorscould expect and commercialization. “Hesaw He’s optimistic aboutCanada’s potentialtakeovers much earlier in problems butwith neweyes, and he opportunitytocompeteinbiotech the livesofyoung drug companies. became areal major playerinevery butsays“it takesalong-term invest- Chutterisoptimistic aboutCana- fashion,”saysPhil Gold, apioneer- ment in thatecosystemand being dian biotech, butadvises found- ing cancer researcher and past chair able to identify strong players to ersand fundersheretothink big. of McGill’smedicine department. take every opportunity.”But AbbVie “We’re nowataplaceinCanada In 2003,Hudson founded and is also on the hunt forCanadian bio- wherewe’ve gotfearlesssenior ranagenome innovation centrein tech firms and veuni rsityresearch- executiveswho recognizehow big partnership with McGill to apply erstopurchase or partner with. their platforms can be,how big the his knowledgeoftreating genetic “The thing with Tomisit’sthe opportunitycan be and, as aresult, diseasetodrug development pro- happiest story of aguy whoistruly considerable capital is coming in to grams. Threeyearslater,hewent to an intellectual leader in his field enable that,”she says. Torontotoleadthe Ontario Insti- finding arole at the pinnacle of his She’s also hoping to see more tute forCancer Research (OICR). practiceindrug discovery,” says Canadian institutional investors Finding adequate research funding Lloyd Segal, the veteranbiotech startbacking the biotech sector.“It fordrug development has been a entrepreneur and investor based in is obviouslygenerating significant chronic problem in Canada. But Montreal. “The onlysad part is Can- returns, and to date it has not been with determination and an infusion adacan’t keep someone likethat, as prominent an area of focus fora of dollarsfromthe Ontario govern- becausethere is no platform that number of Canadian institutions,” ment, OICR helped create 20 com- big fordrug discovery and develop- she says.They’remissing outona panies during his tenure. ment in Canada. It’s not acomplaint; greatstory. Then, five yearsago,America it is what it is.”

APRIL 2021 /REPORTONBUSINESS 39 Noubar Afeyan Founder and CEO, Flagship Pioneering, and chair,Moderna Inc. As he wasfinishing his PhD in bio- chemical engineering at the Mas- sachusetts Institute of Technology in 1987,Noubar Afeyan spent six months travelling back and forth to Montreal to see if he should set up his first companythere. He hadstrong ties to Montreal; his familyhad arrivedin1975, when he was13, afterfleeing the civil war in Lebanon, wherehewas bornto Armenian parents. Within months of the family’sarrival, he hadafed- erallyfunded job whereheinter- viewedfellowArmenians about their experiences in Canada, and scored free tickets to events at the 1976 Summer Olympic Games. He went to high school and college in Montreal and earned adegree in chemical engineering at McGill Universitybeforegetting intoMIT. Afeyan waslooking to start abio- tech instrument company. “I was pretty interested in actuallydoing it in Canada,”hesays. Butafter meet- ing potential investorsand partners in Montreal, he concluded “there weren’tquitethe conditions, the people,the support thatIthought one needed to create abiotech- nology company. Theonlymoney severalhaveachievedmultibil- he has successfullychallenged the available wasgovernment money,” lion-dollar valuations, including a entiremodel of companycreation which came with stringsattached, companyyou might have heardof: in the biopharmaceutical sector,” and he didn’t want to end up “a COVID-19 vaccine maker Moderna. says Montreal biotech mavenLloyd semi-government employee.” Moderna, whose messenger RNA Segal. So he went back to Cambridge, treatment starts achain reaction Afeyan stresses thatthe unfa- Mass. “If we could turn back the thatresults in the bodyproducing vourable conditions he spurned in clock and therehad been avibrant virus-fighting antibodies, started Canada are“ancient history.” It has private-sector funding mechanism at Flagship in 2009 and completed topuniversities and an “increas- [in Canada], Ithink the odds would the largest biotech IPOinhistory in ingly” favourable funding land- have been formetobeinMontreal, 2018.Its stock marketvalue soared scape. “I see no reason whyCanada not Boston. My familywas there, my to morethan US$60 billion afterit can’t have multiple active vibrant comfort wasthere, the sciencewas produced its COVID-19 vaccine last hubs of biotechnology innovation, there. Butateam of us were going year,which has been shown to be soon and foralong time,” he says. to invent no matterwherewewere.” 94.5%effective in clinical trials and His advicetogovernments here Of the Canadians whowent south is nowbeing distributedglobally. is to provide not just support to foracareer in biotech, Afeyan’s In addition to the tens of millions the sector butalso “figureout how departuremight have hurt Canada’s of shares held by Flagship funds, to be catalytic” by taking steps that industry the most. Consider what Afeyan’s 2.1million shares were can have asignificant impact in he’s done since. Afterselling his worth morethan US$320 million at stimulating Canadian biotech. And first company, PerSeptive Biosys- the end of February. there’snotime likethe present to tems, in 1998, he founded what is Just imagine what the 58-year- getstarted. Afterthe pandemic, todaycalled Flagship Pioneering. old Afeyan might have contributed he believesbiotech “will undergo That firm has created, incubated to the Canadian economyhad he amassive increase in impact, in and financed dozens of biotech stayedand incubated companies investment and in global notoriety companies, often based on nascent hereinstead. “The legacy of Nou- as aprovider of health solutions, and way-out-therescientific ideas. barAfeyanisthathe’snot just and Canada should be abig benefi- Twenty-four have gone public, and challenging pharma and biotech; ciary of that.” PHOTOGRAPH (LEFT) SIMON SIMARD

40 APRIL 2021 /REPORTONBUSINESS Josh Schimmer fledgling industry.Hedid stints at John Hamer Senior managing director,biotech team, Leerink Partners, LazardCapital Managing director, Evercore ISI Markets and Piper Jaffray, and made DCVC Bio Last November,shares of Bellus astopatabuy-side investment firm John Hamer haddecided it was Health Inc. jumped nearly 30% beforejoining EvercoreinJuly2017. time to come home. Afterearning to close at US$3.08onthe Nasdaq He wasabletodothe job while liv- degrees at the UniversityofWind- stock market. Thereason?Ever- ing in SanDiego, wherehis family sor in the early 1980s, the Toronto- core ISI analystJosh Schimmer had hadmovedfor quality-of-liferea- nian went to the UniversityofCali- just initiatedcoverage on the Mon- sons. It turns outSan Diegoalso fornia, Davis, near Sacramentofor treal developer of cough medica- has ateeming biotech sector—and his PhD in microbiology,then took tion, issuing an outperform rating serious Canadian representation. aresearch job with E.I. du Pont de and apricetargetofUS$12. That One of the area’stop biotechs, Nemoursand Co.inDelaware. prompted investorstotakeasecond MiratiTherapeutics, started as a Butwhen he interviewedCana- look at acompanywhose stock had Montreal-based companycalled dian universities forpost-doctoral crashed four months earlier,after MethylGene,and Faheem Hasnain, assignments, he wasunimpressed. some disappointing trial results. CEO of Gossamer Bio,hails from Therewas scant startup money. One Schimmer’scalls carry more Windsor,Ont. school offeredhim alab thatneeded cloutthan those of the averageana- Having dual citizenship (his par- to be renovated—outofhis own lyst: He’s been Institutional Inves- ents areAmerican) made going to pocket. As he pondered the meh cir- tor’stop-rated analystfor small and school and working in the U.S. “a lot cumstances in his home country,he mid-sizebiotech stocks forthe past easier,” Schimmer says.Though he gotacall from Purdue Universityin three years. “Hestands outuniquely has considered returning to Can- Indiana. In contrast to indifferent in terms of his almost philosophical ada, “therewas little placeelse to go Canadian schools, Purdue rolled out approach to howhelooks at bio- forbiotech than the U.S.,”hesays. the redcarpet. “Theyactuallytold technology,” says his bossand Ever- “For what interested me,which me Ididn’t have astartup budget— core’s headofresearch, MarcHar- wascutting-edgeinnovation and Ishould just keep spending until I ris. “Hebelieveshis work is helping its intersection with finance, it was gotagrant. It wasalmost ablank the world.”Harris adds Schimmer clear it would be hardtofind that cheque,” Hamersays. He took the is fuelled by an intense work ethic. path in Canada.” Purdue post in 1988 and wassoon Notbad forakid from the Greater Schimmer probably made the promoted to full professor,becom- TorontoAreawho realized early right call not moving back home. ing aDavid and Lucille Packard on he wasn’t cutout forthe family Afterthe credit crisis, Canadian Fellow, winning national awards, business: medicine. His father was banks retreatedfromthe biotech meeting U.S. President Bill Clinton, amolecular genetics and pharma- sector,and the number of Bay and editing agenetics and biology cology research professor at the Street analysts covering the field journal. UniversityofToronto, his uncle declined sharply.“My sense was Hamer could have carved out is arheumatologist, and his older thatifIwanted to build askill set asuccessful career in academia. brother heads research at Toronto’s thatwould give me longevityinthe Butone night in his late thirties, he PrincessMargaretHospital. Schim- industry,” he says,“then the best wasreading Anne of GreenGables mer wasstudying internal medi- placeand lowest-risk waytofind it to his daughter.Hecame upon the cine and rheumatology at UofT, would be in the States.” passage whereAnne describes butafter realizing he didn’t have the her futureasastraight road that chops to be aresearcher,hedecided has come to abend: “I don’t know to try something else. “I thought the what lies around the bend, butI’m intersection of scienceand busi- going to believe thatthe best does.” nesscould prove quiteinteresting,” Hamer realized he needed abend he explains. in his ownroad.Atthe time,the Schimmer earned an MBAfrom genomics boom wasstarting, and HarvardBusinessSchool in 2003, he wanted in. butfound himself “frustrated and He leftPurdue in 1998 to join an disappointed” with the lack of agriculturebiotech startup in North opportunities. “Therewerealot of Carolina called Paradigm Genetics career paths whereIwas still way as chief scienceofficer.Paradigm underqualified because Ididn’t went public in 2000 and sold three have anyrelevant businessexperi- yearslater to Monsanto. Paradigm ence, and othersfor which Iwas boardmember and prominent ven- overqualified.” turecapitalist SteveBurrill (who Afteraseries of introductions, he yearslater would be jailed forfraud landed an associate job at Deutsche and taxevasion) persuaded Hamer Bank and became afull biotech to join his firm in SanFrancisco. analystayear lateratCowen& Hamer didn’t knowmuch about Co., while biotech wasarelatively early-stageinvestment. “I hadto

APRIL 2021 /REPORTONBUSINESS 41 antibodycompany. Butthe twohit it off, and Hamer gotexcited as he learned more aboutAbCellera’sunique technol- ogy.Using artificial intelligence and acredit card–sizedevicefilled with hundreds of thousands of tiny chambers, AbCelleracould simulta- neouslytest manyantibodies from blood samples. It could then deter- mine which hadthe potential to be disease-fighting treatments, dramat- icallyspeeding up drug discovery. AbCellerahad participated in one project funded by the U.S. Defense Department’sDefense Advanced Research Projects Agency (DARPA) to rapidlyfind medical responses to futurepandemics and wasembark- ing on asecond. It also partnered with drug makersondozens of drug discovery programs. “You could see the technology could really, really scale,” says Hamer. He invested US$7.7 million in August 2018.DCVCprovided another US$10.5million in the next twoyearsasother investors, includ- ing Silicon ValleybillionairePeter Thiel, signed on. Theonset of COVID-19 was showtime forAbCellera. Three days afterreceiving ablood sample from arecoveredpatient on Feb. 28, 2020,its researchersisolated hundreds of antibodycandidates. Within months, theyfound their antibody, which could provide tem- porary immunitytosome patients; it partnered with drug giant Eli Lilly &Co. and putthe treatment into clinical trials. By year’s end it was authorized foremergency use by regulators in the U.S. and Canada. go to Amazon to order books on back: “The fact he wasCanadian That set up AbCellerafor the big- venturecapital,”hesays. Buthedid wasacoincidence,”saysAbCellera gest IPOeverbyaCanadian biotech well at Burrill &Co. foreight years, CEO Carl Hansen, whohad started this past December,giving it amar- beforedecamping to co-leadMon- the companywhile running the bio- ketcapitalization north of US$10 santo’sventurecapital arm. engineering group at the Univer- billion—and DCVC astake valued AfterBayerbought Monsanto, sityofBritish Columbia’sMichael at morethan US$1.1 billion. Hamer and partner Kiersten Stead, Smith Laboratories. Hansen had Having struck gold in his home another Canadian, lefttoset up previouslyworkedwith California and native land, Hamer thinks Can- their ownbiotech fund, joining San Institute of Technology professor adahas “a hugerole to play”inpro- Francisco’sData Collective Venture SteveQuake. When Hansen needed ducing moresuccess stories. “If one Capital (DCVC), adata science– funding, Quakeconnected him with thing has been proven, it’sthatthis

oriented technology fund they’d DCVC,wherehewas an adviser. entiresector could turn on adime AHDESMAKI backed. Thefirstinvestment from Hansen waswary of venturecapi- and deliverthingsfor the health of UL DCVC Bio’s inaugural, US$210-mil- talists, butheappreciatedHamer the planet,”hesays. “Canada can lion fund wasaVancouvercompany forhis shrewdnessand depth of take advantageofall that, whether called AbCelleraBiologics. experience. Hamer,for his part, it’stogeneratereturns or generate This wasnot acase of one Cana- admits he was“underwhelmed” employment, and attract firms to dian scratching another Canadian’s when he heardAbCellerawas an Canada rather than Boston.” PHOTOGRAPH MARKK

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Enteryourbusiness at tgam.ca/TopGrowingEntry 44 APRIL 2021 /REPORTONBUSINESS REBEL INVESTORS HAVE DRIVEN THE PRICE OF BITCOIN SO HIGH THATTHE FINANCIAL ESTABLISHMENT HAS BEEN FORCED TO JUMP ON FORTHE RIDE

ILLUSTRATIONS BY KLAWE RZECZY

Likeevery CEO when the pandemic hit, Christopher Gimmer wondered howthe crisis would affect his Ottawa-based startup,Snappa. He had reason to be hopeful, on the businessfront at least. Snappaisasmall companywith onlyahandful of employees, its simple-to-use online graphic design tools were already popular with entrepreneurs, and within weeks Snappa’sgrowth rate accelerated as morebusinesses rushed online. YetGimmer wastroubled by what he sawaround him— governments battling the rapidlyspreading COVID-19 virus by raising debt to levels not seen sincethe Second WorldWar,while central banks slashed interest ratestonear zero.

APRIL 2021 /REPORTONBUSINESS 45 Which is when Gimmer did some- thing very few other CEOs hadever dreamed of.After Snappa’sbank cutthe interest rate on its “high-interest sav- ingsaccount” to 0.45%, Gimmer began to shiftaportion of Snappa’scash hold- ingsintobitcoin (BTC), the radical cryptocurrency thatpromises away to conduct transactions online while sidestepping the established world of finance. It’s also an asset JPMorgan Chase &Co.’s chief executive officer, Jamie Dimon, oncederided as a“fraud …worse than tulip bulbs.” “Central banks and nation states have reached apoint of no return, and they’ll neverbeabletoraise ratesagain,”says Gimmer,who fearsthe value of curren- cies will be drivendownevenfurther afterthe pandemic ends. Bitcoin, on the other hand, has ahardcap of 21 mil- lion units, andthe last bitcoin won’tbe electronically mined until the year 2140, something fervent adherents, including Gimmer,insist protects its value against erosion. “Weworkedreallyhardonthis businessoverthe course of fiveyears and developed areallynicecash bal- ance. We realized bitcoin could be the ultimate reserveasset forustoprotect our purchasing power,”hesays. Formost of bitcoin’s history since its conception in 2008, when someone named Satoshi Nakamotouploaded plans foradecentralized and highly secureonline currency,ithad largely been the domain of digital utopians and speculators.Tothe extent thatbanks and other corporations considered it at all, it wasmostlyasablack hole rifewith lasting ways.Against the backdrop thought some bitcoin on the bal- fraud, moneylaundering and prone of arenewedsurge in bitcoin that ancesheet wasagood idea. In to extreme volatility. In short, some- sawits pricerise tenfold since early February,Tesla founder and thing thatcould easilybedismissed March 2020 to around US$50,000 CEO Elon Musk revealed the elec- as apeculiar butpassing fad. That per coin (as of early March), aspate tric carmaker hadbought US$1.5 changed somewhat afterbitcoin prices of newbitcoin-based exchange- billion in bitcoin and would start first went parabolic in 2017.The bitcoin traded funds began trading on the to accept it as payment forits vehi- boom minted thousands of crypto mil- TorontoStock Exchange, touting cles. Thepart-time rocket build- lionaires, and Wall Street banks found themselvesascryptoinvestment er’s decision added rocket fuel themselvessuddenlyabletolook past vehicles forthe masses. Big global to bitcoin’s already stratospheric bitcoin’s scandals to muse aboutopen- banks areonceagain embracing price. ButMusk also ignited a ing potentiallylucrativebitcoin trading cryptocurrencies. At the same wider debate aboutwhether cryp- operations. Butwith the 85% collapse in time,central banks around the tocurrencies have aplaceincor- bitcoin’s value the following year,many worldare actively working on dig- poratetreasuries. of those endeavoursfizzled. ital currencies of their own, with “Everyone is crazy not to have a Thepast few months, however, have the Bank of Canada at the fore- 1% to 2% position in bitcoin—if it seen the barriersbetween the worlds of front of thateffort. goes to wheresome of us think it’s fringeand traditional financecrumble Then there’sthe matterofthat going,”saysGimmer. in farmorepractical and potentially technology multibillionairewho And where’sthat? If bitcoin

46 APRIL 2021 /REPORTONBUSINESS displaces gold as the inflation- JPMorganChase’s CEO,has whereas gold bugswould have fled to anxious investor’s alternative of walked back some of his harsher the shinymetal in economic turmoil choice, then the pricecould hit criticism of the cryptocurrency as past, todaywe’re seeing bitcoin bugs. US$500,000,Gimmer says with- the bank has warmed to the sector. “Bitcoin at this stageisbest thought of outany hesitation. If it devoursthe Last year it accepted twoofthe as digital gold yethas manyadvantages bond market, as he thinks it will, largest bitcoin exchanges, Coin- overthe yellowmetal,”prominent value US$1 million each. “ButIwon’t base and Gemini Trust, as clients. investor Bill Miller wrotetoclients in give youthe reallybullish case Using the same blockchain tech- January.Highlighting other companies because then people just think nology thatunderpins bitcoin, the thathavemovedsome of their cash to you’re crazy,” he adds. bank also launched its owndigital bitcoin, including Square, MassMutual Such talk makes Barry Schwartz, coin, JPM Coin, to handle some and MicroStrategy,hewrote,“If infla- chief investment officer at Baskin client payments around the world. tion picks up,orevenifitdoesn’t, and Wealth Management in Toronto, Other institutions have gone fur- morecompanies decide to diversify roll his eyes. He counts himself ther.InFebruary,America’soldest some small portion of their cash bal- among those fascinatedbydigital bank, Bank of NewYorkMellon, ances intobitcoin insteadofcash, then currencies and their promise to said it would begin to hold, trans- the current relative trickle intobitcoin revolutionizethe financial world’s ferand issue bitcoin on behalf of would become atorrent.” antiquated and sluggish payment its clients. Counterpoint Global, Alot of investors, economists and systems. Still, he questions not just aunit of Morgan StanleyInvest- businessleadersare worried about bitcoin’s sky-high price, butalso its ment Management thatoversees inflation. Yetit’snot been proventhat appropriatenessasaninvestment US$150 billion in assets, is report- bitcoin does anyofthe thingscrypto- forboth individuals and com- edlyconsidering whether bitcoin enthusiasts insist it does—serveasa panies. “Maybe some companies will want to start putting bitcoin on their balancesheets, butthe volatile natureofmost cryptocur- $50,000 rencies means they’renot suitable (PRICE OF BTCINU.S.DOLLARS,MONTHLYCLOSES) forthe majorityofbusinesses,”he $49,631 says.“There’sareason we don’t 40,000 pricethingsinbaseball cards and Beanie Babies.” 30,000 Whetherbitcoin is “the mother of all bubbles,”asone Bank of America Securities analyst 20,000 recentlydescribed it, or the future “currency of choicefor interna- tional trade,”asanother analystat 10,000 Citi putit, one thing is clear amid $338 the mania: Bitcoin has reached a tipping point. 0 2015 2016 2017 2018 2019 2020

Signs thatbitcoin is having would be asuitable fit forits inves- storeofvalue or amedium of exchange. amainstream moment abound. tors.Mastercardisset to begin “Bitcoin is supposed to be digital Over the past year,anumber of supporting select cryptocurren- money, butit’snot reallygood at that,” high-profile investorsrevealed cies on its payment network later says Andreas Park,associate professor themselvestobebitcoin converts. this year.Meanwhile,BlackRock, of financeatthe UniversityofToron- Billionairehedgefund manager the world’slargest asset manager, to’s Rotman School of Management. If Paul Tudor Jones announced he’d has “started to dabble”inbitcoin youbelieve abitcoin could be worth putjust over1%ofhis assets into by letting twoofits funds invest in $500,000 or $1 million in the decades bitcoin, while fellowAmerican bil- bitcoin futures, according to man- to come,you would be foolish to ever lionaireinvestor StanleyDrucken- aging director Rick Rieder. spend it. miller revealed his ownstake.“It’s Bitcoin appearsmorenormal Thefirst documented commercial been around for13years, and with at atime when everything else transaction paid forwith bitcoin was each passing dayitpicks up more aboutthe financial worldseems so when Laszlo Hanyecz bought aDom- of its stabilization as abrand,”he abnormal. Unprecedented stimu- ino’s pizza in 2010 for10,000 bitcoin told CNBC last fall. lus efforts by governments and when the cryptocurrency wasworth Bitcoin’s shedding of its crypto- central banks have begun to spark afraction of acent. The$100-million, anarchist roots can also be mea- growing fearsofinflation, even then $200-million and now$500-mil- sured in the changeintone among if official measures of consumer lion pizza has become athing of crypto severalmajor banks. Dimon, prices have remained weak. But lore. “Ithas no purpose. It’s worsethan SOURCE YAHOO FINANCE

APRIL 2021 /REPORTONBUSINESS 47 gold,”saysParkofbitcoin. “A sleast with So far, Canada’sbanks have not being overstated, and the wild gold youcan putitinyour teeth.” been relatively circumspect about swingsinbitcoin prices could Which bringsustothe morepressing their views of cryptocurrencies result in write-offs and charges fear that’sluring some from the tradi- compared to their U.S. counter- against earnings. tional corporateand financeworld to parts. Requests to each of the Big Thereare other practical hur- cryptocurrencies—the fear of missing Five banks abouttheir respec- dles to bitcoin’s wider acceptance out. While bitcoin “used to be some- tive stanceonbitcoin were met as an actual private and secure thing onlyyour crazy uncle talked with either a“no comment” or no medium of exchange, and not just aboutatChristmas,”the dramatic response at all. In January,Victor something to be hoarded. While run-up in prices overthe past year has Dodig, the CEO of Canadian Impe- the number of merchants accept- forced professional moneymanagersto rial Bank of Commerce,did stray ing bitcoin is growing, the tax take acloser look, says Kevin Muir.He’s from the pack during atelevision treatment can be maddeningly aformer bank trader whowrites the interviewwith BNN Bloomberg complex. Taxauthorities view MacroTourist newsletterand has been when he ventured that“overthe cryptocurrencies as acommod- along-standing bitcoin skeptic. “People medium to long term, some [cryp- ityand not acurrency,meaning don’t understand howbig FOMO is for tocurrencies] will be considered a thattheir use in paying forgoods professional investors,”hesays. “Unlike legitimate storeofvalue,and we’ll or services is considered abarter retail investors, youcan’t afford to miss adapt to it at thatpoint.”But the transaction, says LauraGheorghiu, out.”Tothatend he has increasingly bank declined to elaboratefurther. apartner in taxlaw at Gowling heardsenior pension plan managers “The reluctanceonthe part of WLGinMontreal. Abusinessthat ponder the futureofthe cryptocur- Canadian banks or even Cana- accepts bitcoin as payment has the rency,though he isn’t awareofany who dian companies in general is usual businessincome to consider at taxtime,but also what happens to the priceofbitcoin by the time the cryptocurrency is sold or used to buyother goods—therecould IT HAS NO PURPOSE. IT’SWORSE THAN GOLD. be asizeable capital gain or loss AT LEASTWITH GOLD YOUCAN PUT IT IN YOUR TEETH thatalso must be considered. “It’simpractical to hold crypto —ROTMAN SCHOOL OF MANAGEMENT long term because of the value ASSOCIATE FINANCE PROFESSOR ANDREASPARK fluctuation,”Gheorghiu says. “Thatvolatilityisholding alot of companies back, and the abil- itytoconvert it back intosome- areready to pull the trigger.“It would because bitcoin is still an asset thing thatisboth morestableand be completelyirresponsible forinstitu- classthatremains highlyvolatile matches with the taxtreatment is tions to be getting intothis,”hesays. and subject to sentiment,”says abig impediment.” As forother traditional companies Robert Colangelo.The senior Then thereare the pitfalls that thathavebecome bitcoin hoarders, the vice-president of the global finan- have always accompanied bit- list is not long. Awebsitecalled Bit- cial institutions group at DBRS coin, likeits reputation as ahaven coin Treasuries posts arunning tallyof Morningstar wroteareport in formoneylaunderers, the spec- twodozenpubliclytraded companies February explaining whythe big tacular and all-too-frequent col- holding bitcoin, butmost arecrypto- banks arelikelytokeep their bal- lapse of bitcoin exchanges, and currency businesses, likebitcoin min- ancesheets bitcoin-free. “There’s the grotesque environmental ersorTorontoStock Exchange–traded still this stigma attached to bitcoin impact of cryptocurrency min- Galaxy Digital Holdings. It holds a and cryptothatit’sused forillicit ing operations thatconsume as position in aU.S. cryptocurrency asset activity, and until thatwearsoff I much energy as whole countries. management firm with the same name don’t think you’re going to see alot Acompanythatisconsidering thatisthe sub-adviser on the upcoming of movement on cryptocurrencies buying or trading in bitcoin might CI Galaxy Bitcoin and CI Galaxy Ethe- from the big banks.” do well to read the risk factors reum ETFs. He sees Canadian banks even- section of the prospectuses filed Bitcoin enthusiasts daretodream, tuallyholding small amounts of with regulators forthe flurry of though. RBC Capital Markets analyst cryptotosupport trading activity newbitcoin ETFs: “attacks on the Mitch Steves wroteareport in February by customersoftheir wholesale Bitcoin Networkrisk,”“increased laying outthe case forApple to enter banking businesses. Butunder regulation of bitcoin risk,”“loss the crypto-exchangebusiness. In it, he International Financial Report- of private keys risk,”“energy con- suggested the world’smost valuable ing Standards, cryptocurrency sumption risk,”“hacking of bit- companycould buybitcoin forits own holdingsare not considered cash, coin trading platforms risk” and balancesheet (a US$5-billion purchase which makes them ariskyasset. “control of the bitcoin network would consume just 20 to 25 days of free Banks must test intangible assets risk,”toname just afew. cash flow, he noted). Thebitcoin com- on their balancesheets at least Evenwith those risks, the main- munitycheered the prospect. annuallytoensuretheir value is streaming of bitcoin is well under SOURCE BITCOINTREASURIES.ORG BY @NVK, VALUES AS OF MAR. 4, 2021

48 APRIL 2021 /REPORTONBUSINESS Shopify,based in Ottawa.Parkbelieves it could catchon, especiallyamong small businesses fedupwith the 2% to Manylarge corporations aredebating whether to keep some of the cash on their balancesheetinbitcoin. Butsofar,the only large publicly traded 3% transaction fees theypay on elec- holder thatisn’t aspecialized cryptocurrencyfirm is Elon Musk’s Tesla Inc. tronic payments, most of which go to the banks. “It’slikeatax, and it’sahuge NUMBER OF VALUE($US drag on the Canadian economy,”hesays. COMPANY (EXCHANGE) COINS (BTC)MILLIONS) Butcryptocurrencies likeDiem also 1. MicroStrategy Inc. (Nasdaq) 90,859 4,667 pose adirect challengetothe Bank of Canada’sabilitytoinfluencethe econ- 2. Tesla Inc. (Nasdaq) 48,000 2,580 omythrough monetary policy if their 3. GalaxyDigital Holdings (TSX)16,402 843 popularityamong businesses and con- 4. SquareInc. (Nasdaq) 8,027 412 sumerseverled to the loonie becoming obsolete. “Thereare all sorts of reasons 5. Marathon Patent Group (Nasdaq) 4,813 247 people might find theyhavetheir hands 6. Hut 8Mining Corp. (TSX)3,012 155 on Diem, and it can become areal threat 7. Voyager Digital Ltd. (CSE) 1,239 64 if people finditmoreconvenient,”says Park,who recentlytook part in aBank of 8. RiotBlockchain Inc. (Nasdaq) 1,175 60 Canada competition to design acentral 9. Coin Citadel Inc. (OTC)513 26 bank digital currency. 10. Argo Blockchain PLC (OTC)501 26 In February,inaspeech titled “Chang- ing howwepay,” Bank of Canada Dep- uty Governor TimothyLane described way. Butthatitself could pose a 1990s. And in acryptocurrency the surge in cryptocurrency prices as a threattothe cryptocurrency,says worlddominatedbyvolatile giants “speculative mania—an atmospherein Kevin Muir.“Ithink bitcoin has likebitcoin and Ethereum, many which one high-profile tweet is enough reached acritical masswhere investorsare “hodling”—holding to trigger asudden jump in price.”He enough people viewitasaccept- on fordear life. He sees aniche for said the bank has sped up its ownefforts able,and that’sadanger in and of astablecoin thatdoesn’t fluctuate to launch adigital currency.The pan- itself,” he says,pointing to recent wildly, is tethered to afiatcur- demic has accelerated the pace of Can- scrutiny from the European Cen- rency (in this case,the loonie)and ada’sdigital transformation. “Our work tral Bank and U.S. Treasury Sec- can be deposited at abank. to preparefor the daywhen Canada retary Janet Yellen. “The moreit “There’sasubset of cryptocur- might want to launch adigital loonie— becomes accepted, the moreofa rency people whodon’t want the backed by the Bank—has also acceler- threatitposes to the government, volatilityand nefarious characters ated.”Likewise,intestimonyonCapitol and there’snoway theywill allow running exchanges and finding out Hill in February,outgoing U.S. Federal that.”Ifgovernments shutdown their moneyisgone—theywant ReserveChairman Jerome Powell said bitcoin exchanges, its pricecould the safety and comfort thatabank developing adigital dollar is a“very fall dramatically. “Myplan is to presents,”hesays. While VCAD high priorityproject forus.” short the shit outofitonthe way still needs approval from regu- And thatcould eventuallyput central down,”Muir says. lators,Taylor knows it will take bank–controlled digital currencies on work to distancehis bank’scoin acollision course with decentralized from bitcoin’s tarnished reputa- cryptocurrencies likebitcoin. Does tion. “It’sahugeobstacle I’vegot such aprospect concern Christopher Today, thereare morethan to overcome,” he says,“because Gimmer?Not really, he says.Itdoesn’t 5,000 different cryptocurrencies when people hear what we’re alter his fundamental reason forSnappa and other types of digital coins on doing theyinstantlythink I’ve to ownbitcoin, which is to preservethe the marketbesides bitcoin. There takenleave of my senses.” company’scash. Afterall, central banks could soon be one moreifthe head Whether VCAD becomes areal- will be just as likelytoinflate the supply of one of Canada’ssmallest banks ityornot, other cryptocurrencies of digital loonies and greenbacks as the gets his way. In February,London, areontheir way. Arguably the physical kind. Nordoes Gimmer—who Ont.-based Versabank announced most pressing of the newentrants, added laser eyes to his Twitterimagein plans to launch the “world’sfirst as farasbusinesses and central February along with thousands of oth- bank-issued, deposit-based digital bankersare concerned, will be ersasarallyingcry forbitcoin to hit currency,” to be known as VCAD. the Facebook-backed stablecoin US$100,000—putmuch stock in other David Taylor,the CEO of Versa- Diem. Originallynamed Libra, risks dwelled on by bitcoin doubters. bank (2020net income: $19.4mil- it’sgone through policy changes “With everything that’shappened, bit- lion, or 0.5per cent of what CIBC, in an attempt to win regulatory coin has just de-risked so much overthe the smallest of the Big Five, earned approval, and Andreas Park sees last year,” he says.“My conviction in bit- thatyear), is no stranger to being a it as apotential “game changer.” coin is high.” first vemo r. He launched Canada’s Among the partnersthathave In other words, Gimmer and his com- first branchlessbank in the early signed on is e-commerce giant pany arehodling.

APRIL 2021 /REPORTONBUSINESS 49 Congratulationsto theserecent appointees

Phillip Crawley, Publisher &CEO of The Globe and Mail, extends best wishes to the following individuals who were recently featured in the Report on Business Section of The Globe and Mail newspaper. Congratulations on your new appointments.

Tom Knoepfel Scott Pennock Barry Perry Karen Sheriff Manjit Sharma to Senior VP, Retail to Senior VP, Office to Board of Directors to Board of Directors to EDC’s Board Cadillac Fairview Cadillac Fairview Capital Power Emera Inc. Export Development Canada

Andrew Aziz Leigh Allen Jane Caskey Dr. Barry Craig Al Donald to Board of to Board of to Board of to Board of to Board of Governors Governors Governors Governors Governors Huron University Huron University Huron University Huron University Huron University College College College College College

Susan Farrow Suzanne Fleming Wes Hall Caleb James Hayhoe Frank Holmes to Board of to Board of to Board of to Board of to Board of Governors Governors Governors Governors Governors Huron University Huron University Huron University Huron University Huron University College College College College College

APRIL 2021 Recent Appointees

Lisa Jones Keenan Michael Medline Kelly Meighen David Patchell-Evans Brian Porter to Board of to Board of to Board of to Board of to Board of Governors Governors Governors Governors Governors Huron University Huron University Huron University Huron University Huron University College College College College College

Vivek Prabhu Ranjita Rajan Melinda Gerald Slemko Andy Truong to Board of to Board of Rogers-Hixon to Board of to Board of Governors Governors to Board of Governors Governors Huron University Huron University Governors Huron University Huron University College College Huron University College College College

Yola Ventresca Prem Watsa Dr. Richard Reznick Peter F. Cohen to Board of to Board of to President to Chair of the Governors Governors The Royal College Board of Directors Huron University Huron University of Physicians and Sinai Health College College Surgeons of Canada

No other media company provides the prestige of The Globe and Mail. For decades, our Appointment Notices have been vital to introduce key personnel to Canada’s business leaders and decision makers. Our integrated Appointment Notices package includes high profile features in Canada’s #1 National newspaper, #1 business magazine and across our Digital platforms. Connect with Canada’s business community and showcase the outstanding talent that contributes to your organization’s success.

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APRIL 2021

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WEALTH SMARTMONEY

ANDREW SIMPSON LEAD PORTFOLIO MANAGER VANCITY INVESTMENT MANAGEMENT LTD.,VANCOUVER Andrew Simpson has to contend with restrictions, but not ownitagain. thathasn’t hurt his returns. He oversees atotal of $870 Wind-blade manufacturer TPI million in the IA Clarington InhanceGlobal Equityand IA Composites is atop holding in your Clarington InhanceCanadian EquitySRI funds. Thefunds global fund. What’s the attraction? Thebig secular theme is decarbon- onlyown stocks thatmeet environmental, social and ization of the powergrid. To reduce governance(ESG) criteria. Although thatmeans 550firms dependenceonfossil fuels, we in the MSCI WorldIndexare offlimits, Simpson’s global need morewind and solar installa- fund has beatenthatbenchmarkoveradecade. We asked tions. Today’swind turbines require the growth manager whyhelikes the FAANG stocks— blades about75metres long, roughly Facebook, Amazon, Apple,Netflix and Alphabet (formerly the height of the Statue of Liberty. TPI is acompositeblade maker with Google)—except forFacebook, and whyTPI Composites this expertise. It has about18% of the is an attractive clean-energy play. onshoremarketworldwide and can grow that. It sells to wind-turbine How do you screen stocks? manufacturers, such as VestaWind Systems and We have always excluded companies generating Siemens GamesaRenewableEnergy,whose shares revenues from tobacco,nuclear power, military we also own. weapons, adult entertainment and gambling. In What other stocks may benefit from U.S. President 2015,the global fund became fossil-fuel free,and JoeBiden’s US$2-trillion climate action plan? sincethen it also omits oil and gascompanies; the We ownHannon Armstrong Sustainable Infra- Canadian fund did the same in 2019.WedoanESG structureCapital, aU.S. financier focused on green analysis to help identify best-in-classnames in a energy projects. In Canada, we ownrenewable sector and do fundamental analysis. We look for powerproducersBoralexand Brookfield Renew- firms thatcan grow earningsper sharefaster than able Partners, while Xebec Adsorption givesexpo- the benchmarkoverthree to fiveyears. suretorenewablenatural gasand hydrogen. We How do you try to beat your benchmarks? don’t ownelectric-vehicle stocks nowbecause we Outperforming is nevereasy. In December,wehad find them to be expensive.Weplaythis sector indi- 63 names in the global fund versus about1,600 in rectlythrough SQM(SociedadQuímica yMinera), the benchmark. We were overweighted in mid-cap aChilean miner of lithium [used in EV batteries], and mega-cap companies, butunderweighted in and NFI Group,aCanadian bus maker thatispro- large-caps. Forinstance, we ownEvoqua Water ducing environmentallyfriendlyvehicles. Technologies, aU.S. water-purification services Shareholder advocacy is part of your mandate.What companythatisamid-cap butnot in the index. issues have you pursued? Outperformancehas also come from mega-caps We have engaged with Canadian banks—specifi- within FAANG. callyTorontoDominion Bank and Bank of Nova Youonce owned all the FAANG stocks. Why did you Scotia, which we own—for amoratorium on Arc- ditch Facebook? tic oil and gasfinancing, and theyagreed. We have CT TheFAANG stocks areprofitable,high-growth also engaged with GileadSciences, aleader in HIV

AR DIRE companies taking aleadership role in digital drugs, aboutproviding free or low-cost drugsto

ST transformation. We divested Facebook in 2019 low-income individuals, and it continues to do so aftera73% gain. Thereare positivestoFacebook in the U.S. and developing countries. /ShirleyWon in connecting people acrossthe world, butitwas revealed thatitfed data withoutpeople’s consent IA CLARINGTONINHANCE GLOBAL EQUITY SRI FUND ANNUALIZED %TOTAL RETURN* OURCE MORNING to British political consulting firm Cambridge

TS Analytica. That’s different from targeted advertis- 1-YEAR 32.8 ing. Facebook hasn’t done enough to addressthis 5-YEAR 15.2 issue and to regulate hate speech. SINCE INCEPTION (NOV. 2009) 12.3 What else have you divested? Wells Fargowas agreat U.S. retail bank thatwasn’t MSCI WORLD (NET RETURN) caught up in the 2008 financial crisis, so we were 1-YEAR 11.5 happywith that. Butwedivested it in 2016 afterour 5-YEAR 11.2 ESG monitoring caught signs of customer com- SINCE INCEPTION (NOV. 2009) 11.9 GRAPH FELIPE FITTIPALDI; CHAR plaints aboutunauthorized savingsaccounts and TO * F-CLASS. $CDN. RETURNS TO JAN. 31, 2021. credit cards thatled to ahugescandal. We would PHO

APRIL 2021 /REPORTONBUSINESS 53 BUSINESSES ARE HOARDING CASH DURING THE PANDEMIC FORYOUR CONSIDERATION Non-financial corporations’currency and depositsasa shareoffour-quartertotal nominal GDP THE NORTHWESTCO. WINNIPEG 40% CANADA REVENUE (2019) U.S. $2.1BILLION U.K. EUROAREA PROFIT (2019) $83MILLION 30 AUSTRALIA THREE-YEAR SHARE PRICE GAIN 13.5%

P/ERATIO (TRAILING) 12.5 20

History is still ahugeinfluenceat North West, which wasfounded in 1789 to challengeHudson’s BayCo.’s 10 dominanceofthe fur trade. Just 32 yearslater,the upstart merged with its rival. In 1987,however, it wasreborn when HBC spun offits 0 178-outlet northern stores division. Chief executive Edward S. Kennedy 17 16 14 says North West still carries much 2011 20 2012 2013 2015 20 20 2019 2018 2001 2010 2007 2003 2020 2002 2005 2006 2009 2004 2008 2000 of “the baggageattached to the old Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 trading posts—good and bad,”but the past also provides useful lessons DECODER forfuturegrowth. North West grew organicallyand CASHINGIN through acquisitions afterthe spin- off, with revenue roughlydoubling Thehousehold savings from RBCEconomics companiesplanning to $1 billion by 2008. Among its glut has received alot shows.Companies to invest in machinery purchases were 20 AC Value Center of attention during the everywherehavehunkered and equipment, at least Stores outlets in Alaska, the first pandemic. By some down, laid off workers forthose businesses estimates, Canadian and built up their cash outside hard-hit sectors Giant Tigerdiscount stores in the households socked away reserves,inpartbyselling liketourism and live four Western provinces (eventually $150 billion in the first bonds to investorswho are entertainment. On totalling 46), and Cost-U-Less, a three quarters of last hungry foranything that the other hand, if they chain of 12 warehouse club-style year,aresult of people pays even amodest yield. funnel the moneyto stores in the U.S. South Pacific and hunkering down while Thequestion is,what shareholdersthrough the Caribbean. That mayseem odd, governments furiously companiesdowith that dividend payments and butKennedysaysNorth West is pumped moneyintotheir moneyafter the crisis sharebuybacks, we could fundamentally“afrontier merchant, bank accounts to counter passes? seeshareprices soar the effectsoflockdowns. Forone,theycould without much in the way acommunitymerchant.” Butthat’snot the only put it into research, of economic benefit. In Canada’snorth, it operates savings bubble in Canada. equipmentand newjobs. There’salsothe under the Northern, NorthMart and Businesses have amassed Business investment possibilitythatcompanies Quickstop bannersand sells almost amountain of cash over waslanguishing before justsit on it.The shock everything: groceries, electronics, the past year,and what the pandemic,but the of the past year may snowmobiles and more. Manystores theydowith it will help crisis has been awake-up leavebusinesses feeling also have pharmacies. determine howthe call to manyabout the theyneed abuffer. It’s economyrecovers after technological changes alsotrue thatCanada’s North West’stotal revenue COVID-19. sweeping the economy. To corporatesector,likeits doubled again afterthe 2008- Canadian non-financial surviveand thrive, many households,was deep 09 financial crisis,tK bu ennedy, corporations added $145 companieswill have to in hock even before the who’sbeen CEO since1997,says billion in currencyand reinvigoratethemselves, crisis forced it to take the COVID-19 pandemic has been depositstotheir balance and thatcould speed up on moredebt. When the tumultuous. Last year,the company sheets overthe first Canada’srecovery.The pandemic is over, some NOMICS sold all butfive of its Giant Tiger nine months of the year, Bank of Canada’slatest

business leadersmight CO outlets back to the parent company bringing their totalcash business outlook survey, simply decide thatcash CE stash to $700 billion. This released in January,found pile would be best spent in Ottawa.Competition from is notasolely Canadian arobustimprovement lightening their debt other discount chains wassimply phenomenon, as the chart in hiring intentions and loads. /Jason Kirby URCE RB getting toostrong. SO

54 APRIL 2021 /REPORTONBUSINESS WEALTH

As forlockdowns, North West waslucky: Very few of its stores THE NORTH WEST CO. ($CDN) were forced to close forlong. But $35 TSX travel bans have been frustrating. Kennedyand his managers usually fly alot. “Wehaveastore60 30 kilometres north of Winnipeg,” he says.“After that, [the distance] 25 becomes hundreds and thousands of kilometres pretty fast.” To cope,North West has 20 bolstered online systems and, as with some other retailers, its 15 e-commerce sales have grown. Revenue forthe company’ssecond quarter in 2020 wasits highest 0 ever: $649 million. Yes, North West FEB. 2011 FEB. 2021 competes with online giants such as Amazon.com and Walmart, Kennedysays. financial services. “Wecan get90% but manyshoppers in remote The goal nowistokeep of the waytherewithout abanking communities still prefer to shop in strengthening bonds with remote licence,”Kennedysays. stores. The 2017 purchase of North communities. North West already In short, North West serves niche Star Air,acargo airline,has also employs morethan 100 pharmacists markets, but it’sstill possible to been ahugehelp.“And it’snot like and doctors on contract, and it grow substantiallyinthem. “We it’sNew York City,with Amazon wants to expand its telehealth succeed through partnerships,” boxesarriving every hour,” services. It also wants to add more says Kennedy. /John Daly

Responsible Mining

Marie Inkster Karen Poniachik Catherine Stefan Jinhee Magie President, CEO and Director Director SVP &Chief Financial Director Officer

Kristen Mariuzza Ciara Talbot Annie Laurenson Karina Briño Candelaria Mining Complex, Chile VP, Environment &Social VP, Exploration Corporate Secretary GM, Administration, Performance Candelaria Mining Complex

Lundin Mining believes in the promotionofgender diversity at the highest levels of our company. We embrace diversity, inclusion, open dialogue and collaboration as part of our core value of respect. Safety • Respect • Integrity • Excellence I’mstill abig

Turning Point shareholder. Iwanna makesure my shares continue to accrue value what the right thing to do is; you’re also considering what’s going to be the right thing optically. So stepping down wasjust aquestion of timing. Thepandemic probably delayedmydecision by a year.Thingswerereallycrazy,and Icouldn’t imag- ine trying to do achangeofleadership,too.But six months in, thingsgot abit morestable. And in Feb- ruary,weraised another US$130 million with Geor- gian Partners. We also made abunch of organiza- tional changes to makethe businessmorerobust. I just sort of felt like, okay,ifIdohand overthe reins, TopHat will continue to grow. My successor,Joe Rohrlick, hadled asoftware-as- a-servicebusinessthatsaw tremendous growth. It also grew through acquisition, which is reallyvalu- Hanging up the hat able experiencefor TopHat,sincethat’sabig part of our growth strategy.Joe started in March, and I’m MikeSilagadze,the co-founder and soon-to-be-former planning to stick around in the near term to sup- CEOofonline learning platform TopHat,onmaking the port him and makesurethe transition is smooth, decision to hand the job to someone else and to do anything Ican to makesurehe’ssuccess- ful. Imean, I’m staying on the board, and I’m still abig shareholder—I wanna makesuremyshares Iwas always pretty sureIwouldn’t run TopHat for- continue to accrue value. ever.Some people reallyhaveanego aboutbeing It will be hardtosee aproblem Iwould solve in aCEO.Idon’t. Forme, it’sjust moreresponsibility acertain way, and not be able to jump in and make and alot of stress. As abusinessstarts growing—if thatfinal decision. Butanything that’ssufficiently you’re fortunate enough to have some growth— good or badwill end up on Joe’sdesk. He’ll be the the demands on the CEO rise exponentially, and it one in the hot seat. comes down to your abilitytokeep pace.Atevery This is areallypersonal decision. You’re balanc- stage, the stakes go up.Atthe very beginning, the ing what’s good forthe businessand sharehold- question is, can yousurvive forayear and raise ers, and the personal interest of the founder.It’s moneyand build the first version of the product and rarely aclear-cutdecision. Sometimes thingsare getyour first customer?Atthe scale we’reatnow, going amazingly, and the entrepreneur can see the question is, can youadd another $30 million or themselvesrunning the companyfor the next 20 Founded in 2009 $40 million to your revenue this year?Your reward by Silagadzeand years. In othercases, it’sadumpster fire, and the forsuccessfullynavigating each levelistohavean Mohsen Shahini boardhas to step in. Butmost cases areinbetween. even gnarlier problem to tackle. If thingsare going well generallyand youwant Iwas also neverinterested in running apublic US$234 million to stay on as CEO,you should. That’s one of the totalventure company, which means spending moretime doing capital raised privileges of being an entrepreneur.Maybe there’s thingsIdon’t reallyenjoy, likeinvestor relations someone who’sslightlymoreperfect forthe busi- and being very external-facing, and lessdoing the 3million ness, butthe fact thatyou founded it givesyou pri- thingsIenjoy, which is focusing on the product and students are oritytotakethe opportunitytolearn and develop, enrolled in operating the business. And your successes and courses using rather than being swapped outassoon as there’s failures arevery public. You’re not just considering TopHat someone10% better. /InterviewbyDawnCalleja ILLUSTRATION KYLE SCOTT

56 APRIL 2021 /REPORTONBUSINESS