LEADERSHIP IS…

ANNUAL REPORT 2014 2 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 CREATING HIGH QUALITY JOBS TAKING TO THE WORLD INVESTING IN COMMUNITIES HELPING OTHERS SUCCEED

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 3 Aecon Group Inc.

CCCE member companies collectively lead companies with:

1.5 million employees

$ 6 trillion in assets

$ 850 billion in revenues

Canadian Tire Corporation, Limited $ The Canadian Council of Chief Executives 7.3 billion brings CEOs together to shape public invested annually in R&D policy in the interests of a stronger Canada and a better world.

4 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 6 10 28

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CONTENTS

6 17 28 34 Message from From acorns CEO Events and the chair to mighty oaks summits publications 8 18 29 36 Leadership is… New York Message from the creating high Board of directors President and CEO quality jobs 31 38 21 10 Membership Leadership is… 33 Year in review taking Canada to the world 42 Council staff 24 Leadership is… investing in sustainable communities

27 Leadership is… helping others succeed

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 5 MESSAGE FROM THE CHAIR

t its core, free enterprise is about hope, side views corporate governance as a process of “ about providing avenues for people to compliance with ever more restrictive regulations A pursue their dreams of better lives for and procedures. I and my colleagues in the business themselves and their children.” community, on the other hand, see corporate governance as an expression of values rather than Those words, from a 2002 statement by the a list of hard and fast rules. While governments Canadian Council of Chief Executives on corporate have a vital role to play in protecting the integrity governance, sum up for many of us our belief in of markets, simply adding more rules does not economic freedom as a driver of human progress. necessarily make markets fairer or better.

They help to explain why we as entrepreneurs and Members of the Canadian Council of Chief executives are committed to the long-term health Executives head companies with a variety of and performance of our enterprises. But just as corporate ownership structures, and no single important as what we do is how we do it. To quote governance framework is appropriate for all again from that 2002 statement, “ circumstances. Nevertheless, there is growing should be able to count on business leaders to concern within our ranks – and beyond – about instill confidence in the integrity of our financial the ever-increasing volume of corporate govern- markets; to add to Canada’s reputation as a country ment requirements with which boards of directors that is well-governed and home to well-run must comply. The result is a rigid, “check-the- enterprises; and to help Canada in its continuing box” approach that may well prove harmful to quest to spread the benefits of democracy the long-term performance of companies. Boards and free markets to the less fortunate around increasingly spend most of their time on the the world.” processes and procedures that have come to define so-called “good” governance – leaving There was then, and still is now, a debate about little time to cope with critical issues such as the future of corporate governance, and how best long-term strategy, evolving customer needs to ensure that Canadian business is conducted in and the changing competitive environment. the most transparent and ethical manner. One

6 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Leadership in business means making decisions and taking calculated risks in a world that is increasingly competitive and unforgiving of missteps. What is needed in any company is a robust governance system that helps to produce sustained performance over the long term to the benefit of all stakeholders.

In short, I believe that the pendulum has swung national policy providing guidance for proxy too far and that we must return to governance advisory firms. This is a step in the right direction, basics. This return to basic principles would signal but more must be done. As the CCCE said in its a refocusing on long-term performance and a submission to the CSA: “Our members are retreat from the short-termism that afflicts too concerned that [proxy advisory firm] requirements much of current corporate management. can too easily become de facto corporate gover- nance standards, without adequate consideration One example of how far the pendulum has swung and discussion with affected stakeholders.” is the rise of what are sometimes referred to as “private regulators”. Proxy advisory firms, gover- Leadership in business means making decisions nance lobby groups and corporate governance and taking calculated risks in a world that is rankings have emerged as the unofficial developers increasingly competitive and unforgiving of mis- and enforcers of governance standards. They steps. What is needed in any company is a robust often focus on so-called “best practices”, governance system that helps to produce sustained as opposed to value creation. performance over the long term to the benefit of all stakeholders. Let us not abandon tried and true These third-party influencers have promulgated practices for a one-size-fits-all mentality imposed by a long list of corporate do’s and don’ts as they self-appointed “governance experts”. seek to enforce a standardized approach to governance. Some of these organizations are On behalf of Canada’s business leaders, thank you for-profit businesses that operate with little for your interest in our initiatives and policy agenda. regulatory or fiduciary oversight, and their posi- CCCE members look forward to working with other tions on any given issue could be influenced by decision-makers in all regions and sectors in our any number of factors and potential conflicts of mission of building a stronger Canada. interest. The Canadian Securities Administrators (CSA) have recognized these concerns and Paul Desmarais, Jr. recently published for comment a proposed Chair

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 7 MESSAGE FROM THE PRESIDENT AND CEO

ver the past couple of years, concern Consider the most recent findings of the Program about Canada’s labour market has risen for International Student Assessment (PISA), a Osharply. Some people say we are suffering triennial study by the Organisation for Economic a “skills crisis”, while others point to regional and Cooperation and Development (OECD) that industry-specific labour shortages, skill mismatches tests the knowledge and skills of 15-year-olds and, in a few sectors, over-reliance on temporary from 65 countries and education systems. To be foreign workers. sure, Canadian students still score well above average in key subject areas. But since the first The issues are real, but in focusing on today’s round of PISA tests in 2000 we have dropped problems we risk ignoring an even more funda- from 9th place to 13th in math, from 2nd to 9th in mental challenge. We need to ask whether our reading and from 5th to 10th in science. country is doing an adequate job of preparing young people – especially those still in school – In some countries, numbers like that would spark for the jobs of the future. a national debate about the quality of the school system and what is needed to improve it. Not Canada invests heavily in education, and historically so in Canada. For the most part, elected officials we have taken pride in the quality of our public who have spoken publicly about the results have education system. Among other achievements, our tended to shrug them off. At a meeting this past country is a leader when it comes to ensuring summer, provincial and territorial ministers of equal access to education for young people from education insisted that Canada’s schools are still a wide range of socio-economic backgrounds. among the best in the world. As if to prove it, they But past performance, as they say, is no guarantee instructed their officials to look for new ways of of future results. And several recent indicators measuring student achievement that might cast suggest that the quality of Canada’s education Canada in a better light. system is slipping at a time when education PISA, however, is not the only sign of weakness outcomes in many other countries are improving. in Canadian education and skills development.

8 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 To succeed in the 21st century, young Canadians need an education system that is much better than average – it must be among the best in the world.

Another recent OECD study, the Program for the are dedicated, hard-working professionals. And International Assessment of Adult Competencies yes, employers have important roles to play in (PIAAC), found that Canadian post-secondary sponsoring experiential learning opportunities graduates rank below average in both literacy and and investing more in workplace training and numeracy relative to their peers in the developed skill development. world. Some suggest that the comparison is unfair because it lumps together university and commu- But it is shortsighted to suggest, as many have, nity college grads. Yet the same study also found that we need not worry about the downward that more than a quarter of Canadians with at trend in Canadian educational outcomes. As least a bachelor’s degree – and more than half of columnist Thomas Friedman of The New York all Canadians – fall below what is widely consid- Times observes, the time is past when a person ered the minimum standard of literacy to function with average skills, doing an average job, could in modern society. enjoy an average lifestyle. Thanks to globalization, rising competition from emerging markets and In numeracy, Canada’s performance is arguably rapid advances in information technology, Friedman worse. PIAAC found that Canadians in every adult says, “average is over”. To succeed in the age group, from 16 to 65, score below the OECD 21st century, young Canadians need an education average in their ability to use and interpret basic, system that is much better than average – it must everyday mathematical information. be among the best in the world.

As an association that represents the chief executives The Honourable John P. Manley, P.C., O.C. and controlling shareholders of 150 leading President and Chief Executive Officer Canadian companies, the Canadian Council of Chief Executives is concerned about the quality of Canada’s education system. Yes, Canada’s schools still do a commendable job overall, and the vast majority of our country’s teachers and educators

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 9 YEAR IN REVIEW

priorities are: preparing Canadians for the jobs of Macroeconomic the future; designing a corporate tax system that and fiscal policy rewards growth; and rebuilding and improving the physical infrastructure – including roads, bridges, fter seven straight annual budget deficits, ports and energy distribution networks – that the Government of Canada is once again underpins our economy. close to balancing its books. But as the A To promote public understanding of the importance red ink recedes, will face significant new of large enterprises to Canada, the CCCE and challenges. Keeping a lid on public spending is PricewaterhouseCoopers collaborated in a often more difficult in an era of surpluses than comprehensive study of the taxes and fees they when a government is running a deficit. Going pay to all levels of government. The report found forward, the federal government must maintain that large employers are subject to more than its commitment to sound fiscal management 50 different kinds of taxes and remit, on average, while gradually reducing the burden of public 33.4 per cent of their profits to government. In debt. A low debt-to-GDP ratio provides the total, the 63 firms that took part in the study best assurance that Canada will have the fiscal contributed $40.6 billion to Canadian public capacity to respond next time our country finances in 2012 while providing employment faces an economic downturn. to 759,276 men and women. In its pre-budget advice to the federal government, As in previous years, provincial debt levels remain the CCCE emphasized the need to think carefully a serious concern, particularly in . The before making any new spending commitments. province’s debt-to-GDP ratio is now nearly “Among many other benefits, the prospect of 50 per cent higher than before the recent reces- budgetary surpluses beginning in 2015–16 creates sion, and rising healthcare costs are sure to put an opportunity for a broader discussion of the added pressure on public finances. In a letter to economic and social challenges facing Canada as newly re-elected Premier Kathleen Wynne, the a whole, and how government can best address CCCE cautioned that the current fiscal situation is those challenges,” John Manley, the Council’s not sustainable and leaves the province vulnerable President and Chief Executive Officer, wrote in a to another economic downturn. In the words of January 2014 letter. “We would encourage you to economist Don Drummond, who chaired the conduct such a review and to identify long-term 2012 Commission on the Reform of Ontario’s strategic priorities before making any final policy Public Services, “Decisive, firm and early action decisions with respect to the allocation of future is required to get off this slippery, and ultimately surpluses.” In the CCCE’s view, three such strategic destructive, slope.”

10 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Out of every $100 generated by CCCE member companies

$38 $ goes to government in 29 goes to employees taxes, royalties and fees

$33 is invested back into the company or distributed to shareholders

Based on a PwC survey of 63 CCCE member companies.

largest market. The CCCE supported the Trade and investment government throughout the talks and now sees ratification as a top priority. In 2014, Canada will pass an important milestone: exports are expected to catch up with and surpass In March 2014, Canada concluded a free trade the levels seen prior to the 2008 recession. Better pact with South Korea after nearly a decade of still, our country appears poised for an export negotiations. The deal represents a watershed boom in the years ahead. With one in five Canadian in Canada’s efforts to forge closer economic jobs dependant on trade, this is encouraging news ties in Asia and will create new opportunities for Canadian workers. To maximize the benefits to sell Canadian products in one of the world’s from rising international demand for goods and fastest-growing advanced economies. But services, it is essential that our governments preferential access to the South Korean market and businesses continue to push for access to alone does not guarantee success for Canadian new and growing markets. companies. Ensuring the agreement lives up to its potential will require resources both to aggressively A significant achievement in 2014 was the promote Canadian businesses and to enforce the conclusion of the Canada-EU Comprehensive agreement. The CCCE urged the government to Economic and Trade Agreement (CETA). move swiftly toward ratification and pledged its When implemented, the agreement will give continued support for trade diversification with Canadians preferential access to the world’s other Asian partners such as Japan, India and China.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 11 BNP Paribas Canada As a member of the federal government’s Advisory Panel for the Global Markets Action Plan, John Manley offered the CCCE’s full support for accelerated efforts in pursuit of Canada’s commercial interests abroad – in particular, the increased use of economic diplomacy. “The Global Markets Action Plan aligns Canada’s trade promotion resources to help Canadian companies take advantage of opportunities in high-growth emerging markets and traditional markets of strength,” he said at the launch of the strategy in November 2013. “By identifying economic diplomacy as a key to advancing Canadian commercial interests, the federal government is ensuring Canadian companies have the support to succeed abroad.”

The CCCE also strongly supports Canada’s participation in the Trans-Pacific Partnership (TPP), a proposed trade agreement among 12 Pacific Rim countries. Based on its current membership, the TPP represents close to $28 trillion in annual economic output – approximately 40 per cent of the world’s GDP. Moreover, the TPP has the potential to expand to include other major economies in the Asia-Pacific region. Siemens Canada Limited Air Canada Concluding an ambitious, high-quality TPP agreement is the most efficient way for Canada to deepen its integration with other Pacific Rim economies and take advantage of Asia’s growing economic performance.

600 In 2014, Canada’s 500 merchandise

400 exports are expected 300 to exceed

Billions CAD pre-recession 200 levels Source: Statistics Canada 100 and The Conference Board of Canada

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

12 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 provisions. The CCCE has been active in North America promoting a more far-sighted approach to the relationship, concerned that unnecessary delays North America’s ability to compete with the rest in key infrastructure projects and short-term, of the world depends heavily on close cooperation parochial politics will cost jobs and erode among Canada, the United States and Mexico. The economic potential on both sides of the border. CCCE, in partnership with the U.S.-based Business Roundtable and Mexico’s Consejo Mexicano de In December 2013, Ottawa and Washington Hombres de Negocios, has identified three broad issued their second annual report card on the areas where governments should strive to create so-called Beyond the Border initiative, which a more integrated and efficient North American is meant to create jobs and boost economic economic space: intelligent border systems, growth by streamlining cross-border commerce. improved regulatory cooperation, and measures The CCCE welcomed progress in several areas, to strengthen North American energy security including in the NEXUS program for frequent and sustainability. The three CEO-based business travellers between the two countries. However, organizations intend to continue advocating for both sides need to move further and faster progress in these priority areas. to deliver on the vision they outlined in 2011. “Canada’s business leaders urge the Prime For that vision to become reality, however, Minister and the President to re-emphasize the political leaders in all three countries need need for ambitious results,” John Manley said to forge a more constructive relationship. The in response to the update. “That should include Canada-U.S. partnership in particular is badly transforming pilot projects into standard practice in need of reinvigoration. Priority issues include and finalizing a Canada-U.S. agreement on the U.S. government’s continued failure to pre-inspection and pre-clearance procedures – approve the Keystone XL pipeline, delays in measures that would significantly contribute to constructing a new bridge across the Detroit River, North American competitiveness.” protectionist labeling requirements on Canadian beef and persistent “Buy American” procurement

EllisDon Corporation Canadian Oil Sands Limited

PCL Constructors Inc.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 13 At the same time, Canada needs to build a more cooperative relationship with Mexico. In 2009, Ottawa imposed a visa requirement on Mexican travellers in a bid to deter bogus refugee claim- ants. New refugee rules have since dramatically reduced the number of false asylum claims – yet the visa obligation remains in place, creating a significant hurdle for Mexican tourists and business visitors. In February 2014, the CCCE published a major report titled “Canada’s trade with Mexico: Where we’ve been, where we’re going and why it matters”. The report called for the elimination of the visa requirement, expanded border facilitation programs and enhanced cooperation in the energy and mining sectors. Innovation and competitiveness

For Canadians to compete in a global economy Cisco Systems Canada, Co. that is increasingly knowledge-driven, firms must constantly innovate. Public policy can play a vital role by encouraging companies to locate In its 2013 Throne Speech, the federal government high-value jobs in Canada and to increase their announced plans to update Canada’s Science, investments in research and development (R&D). Technology and Innovation strategy. The CCCE At the same time, policy makers should refrain response included a recommendation to consider from intervening in markets in ways that disadvan- incentives for fast-growing small- and medium-sized tage Canadian-based enterprises. In the Council’s companies. When companies grow, they typically view, some of the federal government’s recent spend more on R&D as a share of revenues. policy decisions in the telecommunications sector Indeed, just 75 large firms account for half of all have failed to respect that principle. “A healthy private-sector R&D in Canada. Concerned that investment climate requires clarity, fairness and current estimates of private-sector innovation may predictability in government policy and regula- understate the level of real-world activity, the tion,” the CCCE said in a 2013 letter to Prime Council also suggested that Ottawa take a closer Minister . The Council argued look at how innovation is measured. Finally, the that domestic and foreign firms should have CCCE called on the government to implement equal access to bid on wireless spectrum and additional reforms to the Scientific Research and equal opportunity to pursue acquisitions of Experimental Development tax credit program smaller telecom companies. As well, large with the goal of attracting more R&D investment foreign-headquartered companies that seek to to Canada. enter the Canadian market should be subject to the same infrastructure build-out requirements that apply to incumbent firms.

14 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Later in 2013, the Council launched a multi-year initiative – “Taking Action for Canada: Jobs and When companies grow, they Skills for the 21st Century” – aimed at highlighting typically spend more on R&D the importance of a highly educated and skilled as a share of revenues. Indeed, labour force. “We need to recognize that Canada just 75 large firms account for is falling behind when it comes to equipping its citizens with the broad knowledge and cross-cutting half of all private-sector R&D skills that are required to succeed in an increas- in Canada. ingly competitive global economy,” John Manley said in announcing the initiative. As part of its The CCCE believes that governance frameworks work, the CCCE is publishing a series of papers should not unduly restrict the ability of boards to on education- and skills-related issues and respond to changing business circumstances, and planning to hold a national conference in the that excessive rule-making should not hamper spring of 2015. the ability of Canadian corporations to pursue long-term, sustainable growth. Companies should Cyber attacks pose a different kind of risk to be encouraged to recruit directors on the strength Canada’s economy and competitiveness. In of their business acumen, sector experience cooperation with the federal government, and ability to advise on matters of short- and the CCCE put together a CEO-level advisory long-term business strategy, rather than on the panel on cybersecurity to encourage dialogue basis of their expertise in the more technical between the private and public sectors. The aspects of today’s governance rules. Council also published a paper that offers recommendations on how Canadian firms A recent and welcome development is the can strengthen their defences against announcement of an initiative spearheaded jointly computer- and network-based threats. by the Canada Pension Plan Investment Board and the international consulting firm McKinsey & Company, titled “Focusing Capital on the Long Corporate Term”. Their goal is to re-orient institutional governance investors and their portfolio companies towards long-term value creation initiatives and away from what they call “the pervasiveness of short-termism” Good corporate governance must be a hallmark and an obsessive focus on quarterly results. The of Canadian business. High standards of corporate CCCE fully supports this initiative and plans to work behaviour and responsiveness to the concerns of closely with its proponents. shareholders and the broader community not only influence the ability of firms to grow and prosper in Canada, but are essential to the Canadian “brand” and how Canadian companies are perceived in international markets.

Canadian companies continue to improve their standards of transparency and accountability. They are doing so at a time of increasing scrutiny by activist investors, proxy advisory firms and a wide range of advocacy groups. Collectively, these players can impose significant and sometimes competing demands on companies and their boards of directors. BCE Inc.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 15 Aecon Group Inc. BHP Billiton Canada Inc.

Energy and environment

Canada’s abundant energy resources are important improve economic prospects for citizens in all drivers of economic growth and job creation. three countries, while simultaneously boosting They generate billions of dollars in government the competitiveness of North American industry. revenues, supporting the social programs and Over the past year, CCCE representatives held other public services that improve the lives of a series of meetings with government officials, all Canadians. Canada’s energy and resource business organizations and key policy experts industries are also leaders in the development in both Washington, DC, and Mexico City. The of new technologies, products and services that ultimate goal of these efforts is to increase are helping to meet domestic and international North American energy self-sufficiency through needs in an environmentally sustainable fashion. streamlined regulatory approval processes, The CCCE strongly supports the work of the improved cross-border energy infrastructure, premiers and territorial leaders in their efforts to and enhanced cooperation in the development craft a responsible, coherent and pan-Canadian of new energy and environmental technology. energy strategy that will create economic wealth At the North American Leaders’ Summit in for Canadians in all regions. Our belief is that, by February 2014, Prime Minister Stephen Harper, working together, Canadians can position their President Barack Obama and President Enrique country as a global leader in energy technology Peña Nieto gave priority to the continental energy and as a secure, reliable and responsible supplier agenda and directed their energy ministers to of energy to the world. develop a detailed work plan in the year ahead. A key priority is to ensure that Canadian producers CCCE will work with like-minded organizations in have the ability to get energy resources to tidewater. all three countries in support of measures that will At the same time, our country must continue to work boost North America’s energy advantage. toward a close energy partnership with the United States and Mexico. Policies aimed at strengthening the continent’s oil, natural gas and electricity trans- mission systems will enhance energy security and

16 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 FROM ACORNS TO MIGHTY OAKS

Indeed, no economy can reach its full potential Canada needs to without healthy, large businesses.

turn more small The jobs they create, the taxes they pay, businesses into the training they provide, the innovation they spawn – and much more – are the ingredients global powerhouses for success in an increasingly open and competitive global marketplace. s the saying goes, mighty oaks from little acorns grow. In much the same Canada needs many more business powerhouses – Away, almost every great business can companies like our country’s leading banks and life trace its origins to humble beginnings, whether insurers, aerospace manufacturers, energy and in a garage, a workshop, a strip mall or a mining firms, transportation and telecommunica- home kitchen. tions providers, and so on.

And just as giant trees are essential to the Countries of a similar size – such as Spain, Italy, eco-system that nurtures young saplings, so South Korea, Brazil and Mexico – nurture their large businesses help create the conditions corporate champions and take pride in them. for small enterprises to grow and prosper. Canada needs to do the same. Here’s why…

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 17 LEADERSHIP IS… CREATING HIGH QUALITY JOBS

ndustry Canada defines a large company as one that employs at least 500 people. By Workers have I that measure, only 0.2% of all firms in Canada more secure jobs are large. That’s one large company for every 330 small and medium-sized firms. at large firms

Yet that tiny slice of Canada’s business community Employees of large enterprises tend created more than 46% of all new private-sector to enjoy higher levels of job security jobs between 2001 and 2011. than do people who work for small firms. Large companies were the leading job Due to their greater stability and higher creators in seven of those 10 years. By retention rates, large companies also contrast, most small businesses created no typically have older, more experienced new net jobs during that period – many actually workforces and attract more educated shed jobs or went out of business. workers, according to a 2010 Statistics Canada study.

18 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 0.2 % of all Canadian companies are responsible for 1 /3 Large companies are powerful of all private-sector jobs job creators

Source: Industry Canada, 2012

Average weekly wages (2011) Employees of Source: Statistics Canada large companies 400 500 600 700 800 900 1,000 earn higher wages $763 Small firms (<100 employees) Workers at large companies earned an average of $941/week in 2011, compared to $832 at mid-sized firms $832 and $763 at small businesses. Medium firms (100–499 employees) Employees at large companies also typically receive more generous $941 benefits. Insurance and pension cover- Large firms (500+ employees) age at large firms is roughly four times higher than at small businesses. And workers at large companies generally enjoy higher vacation pay, more sick leave, and more bereavement leave.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 19 Contribution to job creation 2001–2011 Source: Industry Canada, 2012

46.2% Large (500+) 42.8% Medium (100–499)

11.1 % Small (<100)

Employees in workplace training (%) Employees receive Statistics Canada 2008

60% more training at big firms 50% 55.4% Large (500+) As workers in China, India, Brazil and 40% % elsewhere become more educated, 43.9 pressure is growing on Canadians to 30% % Medium 36.9 (20–499) upgrade their skills. At companies Small (<20) 20% with more than 500 employees, more than half the workforce takes part 10% in job-related training or education, compared to 44% at mid-sized firms and 0% 37% at small enterprises.

Furthermore, nearly seven out of 10 workers at large enterprises who enroll in education programs receive support from their employer, compared to 39% of those at small businesses.

20 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 LEADERSHIP IS… TAKING CANADA TO THE WORLD

Canadian companies that export (%) Large businesses Source: Industry Canada, 2012 are the most 50% active exporters 40% 43% The bigger a business, the more likely Large (500+) 30% it is to export – earning valuable foreign currency, creating jobs and promoting 20% Canada on the world stage. The vast % majority of small companies stick close 19 10% % Medium to home: only 1.3% of small businesses 1.3 (100–499) were exporters in 2010. By contrast, Small (<100) 0% 43% of large enterprises sold their goods and services abroad. Share of total value of Canadian exports (%) As small firms grow, they gain the Source: Industry Canada, 2012 resources needed to broaden their 70% horizons: legal and linguistic support, 60% access to export financing, greater % management depth, international 50% 59 Large (500+) networks, and so on. They can also 40% stay the course for longer – often an essential condition for breaking into 30% new markets. 20% 24.5% 10% Small (<100) 16.5% Medium (100–499) 0%

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 21 Large companies spend more on innovation

Innovation is critical to rising productivity of the number of businesses – contribute less and sustained economic growth. And when it than one-third of industrial R&D outlays. comes to innovation, size matters. Enterprises with 500 or more employees make up more than The OECD reported in 2012 that just half of all industrial R&D spending. By contrast, 25 companies in Canada account for small companies – which make up over 98% one-third of all business R&D.

Research and Research and development development spending by spending by firm size (2009) revenue size (2009)

7.9 % (< $1M) 52.9% 44% Large (500+) (>$400M) 18.1 % 30.1 % Medium (100–499) ($1M – $49M)

29.1 % 18% Small (<100) ($50M – $399M)

Source: Statistics Canada 2011

22 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Productivity (GDP per hour) Productivity Source: Statistics Canada

$70 is higher at

$60 big firms $ $50 72 A 2013 Statistics Canada study Large (500+) found that large firms are more $40 than twice as productive as small $ 42 companies, based on output $30 $ Medium per hour of work. Bigger enter- (100–499) 35 prises typically invest more in $20 Small (<100) capital per employee. They have

$10 longer – and thus more efficient – production runs. They employ $0 more highly skilled workers.

The gap is widest in capital- intensive industries where large businesses are most active, such as mining, oil and gas, utilities, manufacturing and transport.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 23 LEADERSHIP IS… INVESTING IN COMMUNITIES

Large businesses tend to donate more to charitable causes

Large companies have the scale and resources to contribute generously to non-profit organizations and charities.

According to the Canada Revenue Agency, 80% of all charitable donations and gifts from the business community in 2006 came from large companies. Large businesses are also far more likely to conduct fund-raising campaigns among their employees, to match employee donations, and to give workers paid time off for volunteer activities.

24 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 In 2008, Imagine Canada asked a representative sample of companies about their philanthropic activities. The survey found that companies with revenues of at least $25 million were significantly more likely than other firms to donate to charitable and non-profit organizations, and to support their employees’ charitable efforts.

% % of larger firms contribute funds of all firms 97 to non-profit organizations vs. 76

The median total contribution of larger firms was $ $ vs. 275,000 3,000 for all firms % of larger firms engage in % regular, ongoing charitable of all firms

79 campaigns and initiatives vs. 22 % of larger firms conduct % of all firms fundraising among employees 83 vs. 18 % of larger firms match % of all firms employee contributions 62 vs. to charities 9 % of larger firms support % employee volunteering of all firms 82 vs. 43

Source: Canada Survey of Business Contributions to Community. Survey of 2,181 companies with revenues of $100,000 or more.

ConocoPhillips Canada

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 25 Bigger firms pay the lion’s share of taxes

Corporate tax revenues have grown since 2000, Income tax is by no means the only contribution despite the 2008–09 recession and a significant by businesses to the public coffers. A recent PwC drop in corporate tax rates. survey of 63 large companies concluded that for every $1 of corporate income tax paid, they Large companies – those with more than contributed another 94 cents in other business $15 million in assets – make up 6.6% of all taxes, and 59 cents in various other levies. business tax filers. Yet they pay almost 73% of corporate income taxes. One reason is that large corporations pay substantially higher tax rates than small enterprises.

Of all business Share of tax filers in corporate Canada income tax revenues

93.4% 27.1 % are small firms paid by small firms

% % 72.9 6.6 paid by large firms are large firms

Source: CRA, 2011

26 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 LEADERSHIP IS… HELPING OTHERS SUCCEED

Large companies are important supporters of small business

ho looks after the potted plants in a big company’s offices? Who supplies W sandwiches for lunch-hour meetings? Who cleans the offices at night? Who gets the call Empire Life Insurance Company for specialized training courses? Who provides business cards?

As often as not, these jobs go to outside The most successful small enterprises eventually contractors, many of them small enterprises. become large companies themselves, making a The US Centre for an Urban Future estimates growing contribution to the economy and creating that seven out of ten businesses grew in both opportunities for the next generations of start-ups. revenue and size within two years of joining In business as in nature, we need mighty oaks a large company’s supplier network. as well as small acorns if that cycle is to keep repeating itself.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 27 Paterson GlobalFoods Institute CEO SUMMITS

he full membership of the Canadian In Toronto, CCCE members toured the waterfront Council of Chief Executives meets headquarters of Corus Entertainment and discussed T three times a year in cities across the the impact of social media with the Canadian heads NEW YORK country, and occasionally beyond our borders. of Google, Facebook and Twitter. Later, renowned These events provide chief executives of management expert Clayton Christensen spoke Canada’s leading enterprises with unparalleled about his most recent work on disruptive innovation. opportunities to exchange views with their During a morning-long session at MaRS Discovery private-sector peers as well as senior domestic District, David Rosenberg of Gluskin Sheff & and international policymakers. Associates shared his latest economic forecast, after which members engaged in a CEO roundtable Over the past year, CCCE meetings took place on current business conditions. Later, an expert in New York City, Toronto and Winnipeg. Former panel explored the challenges facing Canada’s President Bill Clinton opened the New York early-stage companies. meeting and shared his perspectives on current U.S. and international policy challenges. After a The future of Canada’s agri-food sector was the tour of the 9/11 Memorial Museum construction dominant theme of the Winnipeg meeting, which site, members gathered at Brookfield Place for opened with a tour of the Paterson GlobalFoods an address by Governor Andrew M. Cuomo Institute and included sessions on food trends of the State of New York. Other speakers and and the impact of technology on Canadianfarming. participants included Jeffrey R. Immelt, Chairman Other agenda highlights included presentations and CEO of GE; and James Dimon, Chairman, by The Honourable James Moore, Minister of CEO and President of JPMorgan Chase & Co.; Industry; The Honourable Greg Selinger, Premier William Ackman, Founder and CEO of Pershing of Manitoba; The Honourable Jean Charest, former Square Capital Management LP; J. Tomilson Hill, Premier of ; and Ian Bremmer, one of the Vice Chairman of The Blackstone Group; and world’s leading experts on geopolitical risks. Wilbur L. Ross, Jr., CEO and Chairman of WL Ross & Co. LLC.

28 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Tridents, 9/11 Memorial Museum NEW YORK

“The only model that is consistently working all across the world today is one of creative cooperation involving all stakeholders. The problem is that, in a world of economic distress and social dislocation, constant conflict is very often a more successful political model.” —President Bill Clinton

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 29 Brookfield Place

James Dimon TORONTO

From left to right: J. Tomilson Hill, CNBC anchor Amanda Drury, William Ackman, Wilbur L. Ross, Jr.

Jeffrey R. Immelt

“The real opportunity for change is still ahead of us, surpassing the magnitude of the development and adoption of the consumer internet. It is what we call the ‘Industrial Internet’, an open, global network that connects people, data and machines. The Industrial Internet is aimed at advancing the critical industries that power, move and treat the world.” —Jeffrey R. Immelt, Chairman and CEO, GE

30 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 TORONTO

MaRS Discovery District

Toronto’s MaRS Discovery District supports entrepreneurs in the sectors of ICE (IT, communications and entertainment), cleantech and physical sciences, and life sciences and healthcare by providing them with advice, education and market research, and connecting them to talent, customers and capital.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 31 Corus Quay

Corus Quay incorporates a number of energy efficient LEED Gold features, such as four green roofs, gray water recycling, advanced building and lighting automation, a five- WINNIPEG storey-high bio-filter wall and is predicted to use 64% less water and 33% less energy.

The interior includes a three- storey human slide, open-concept work area, no floor to ceiling walls, a games area, a screening room and a gallery space featuring rotating exhibits of art created by employees.

Clayton Christensen, author of The Innovator’s Dilemma, has twice been named the world’s most influential business management thinker.

32 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 WINNIPEG

“In 2014, big-picture economics are relatively more stable. But geopolitics are very much in play. The impact of the G-Zero world – one that increasingly lacks global leadership and coordination – is on display.” —Ian Bremmer

Ian Bremmer

To meet global food demand by 2050, agricultural production must increase by 60%. —UN 2012

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 33 EVENTS AND PUBLICATIONS

Event highlights

“Hunting for gazelles: why Canada needs more high-growth firms” Keynote address to the Economic Club of Canada Ottawa, ON – September 16, 2013

“Unfinished business: strengthening the Canada-EU partnership” Keynote address to the Ireland-Canada Chambers of Commerce and the Ireland Canada Business Association Dublin, Ireland – September 27, 2013 “Jobs, skills and opportunities: strengthening Canada’s human capital advantage” Remarks to the Public Sector Pension Investment Keynote address to the Canadian Club Board of Directors’ strategic retreat Toronto, ON – November 28, 2013 Ottawa, ON – October 1, 2013 Remarks at the 2013 Real Estate Forum CCCE Autumn Members’ Meeting Toronto, ON – December 5, 2013 New York, NY – October 7–8, 2013 CCCE New Year Members’ Meeting “Lessons from the C-suite” Toronto, ON – January 13–14, 2014 Panel discussion at the Canada-China Business Council’s annual policy conference Keynote address at Alberta’s Inspiring Beijing, China – October 16, 2013 Education symposium , AB – February 19, 2014 “Competitiveness in a world of three regions” Remarks at a conference sponsored by the Center CCCE Spring Members’ Meeting for North American Studies, American University Winnipeg, MB – April 7–8, 2014 Washington, D.C. – October 31, 2013 “Public-private collaboration: the key to Remarks to the Institute for overcoming some of our toughest challenges” Competitiveness & Prosperity Annual Tansley Lecture, Johnson-Shoyama Toronto, ON – November 28, 2013 Graduate School of Public Policy Regina, SK – April 9, 2014

34 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 “Workplace diversity: defusing the demographic time bomb” Keynote address to the Fifth Annual Forum at Kanada Haus Berlin, Germany – May 20, 2014

Keynote address to the Ottawa Business Alliance Ottawa, ON – June 5, 2014

“The global economy: the foundation for a sustainable economic recovery” Conférence de Montréal panel (moderator) Montréal, QC – June 9, 2014 Selected publications

Skills development in Canada: so much noise, so little action By Bernard Simon What every CEO needs to know November 2013 about cybersecurity Preliminary survey report: the skill By Ray Boisvert needs of major Canadian employers April 2014 January 2014 Should Canada unilaterally adopt Effective management of human capital in global free trade? schools: recommendations to strengthen By Dan Ciuriak and Jingling Xiao the teaching profession May 2014 By Sachin Maharaj Made in the world: defragmenting rules January 2014 of origin for more efficient global trade Canada’s trade with Mexico: Where we’ve been, By Brian Staples and Laura Dawson where we’re going and why it matters June 2014 By Laura Dawson Canada’s international education strategy: February 2014 time for a fresh curriculum Second survey report: skills shortages in Canada By Bernard Simon March 2014 June 2014

PwC Canada Total Tax Contribution study Canada-China relations: keeping up April 2014 the momentum McKinsey and Company Expanding apprenticeship training in Canada: June 2014 perspectives from international experience By Robert Lerman Think nationally, act locally: a pan-Canadian April 2014 strategy for education and training By Paul Cappon July 2014

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 35 BOARD OF DIRECTORS

M. Elyse Allan Pierre Beaudoin John M. Cassaday Paul Desmarais, Jr. (Chair) President and Chief President and Chief President and Chief Chairman and Co-Chief Executive Officer Executive Officer Executive Officer Executive Officer GE Canada Bombardier Inc. Corus Entertainment Inc. Power Corporation of Canada

William A. Downe N. Murray Edwards Darren Entwistle Dawn Farrell Chief Executive Officer President Executive Chair President and Chief BMO Financial Group Edco Financial Holdings Ltd. TELUS Executive Officer TransAlta Corporation

J. Bruce Flatt Asim Ghosh Linda S. Hasenfratz (Vice Chair) Tom Jenkins Chief Executive Officer President and Chief Chief Executive Officer Chairman Brookfield Asset Executive Officer Linamar Corporation OpenText Corporation Management Inc. Husky Energy Inc.

36 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Donald R. Lindsay Jon E. Love The Honourable Michael H. McCain President and Chief Managing Partner John P. Manley, P.C., O.C. President and Chief Executive Officer KingSett Capital Inc. President and Chief Executive Officer Teck Resources Limited Executive Officer Maple Leaf Foods Inc. Canadian Council of Chief Executives

Lorraine Mitchelmore Claude Mongeau Brian Porter Hartley T. Richardson President and Canada President and Chief President and Chief (Past Chair) Country Chair Executive Officer Executive Officer President and Chief Shell Canada Limited CN Scotiabank Executive Officer James Richardson & Sons, Limited

John C. Risley Nancy C. Southern Louis O. Vachon President Chair, President and President and Chief Clearwater Fine Foods Inc. Chief Executive Officer Executive Officer ATCO Group National Bank of Canada

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 37 MEMBERSHIP ■ Board of Directors ■ Entrepreneurs’ Circle Canadian Council of Chief Executives ■ Associate As of September 1, 2014

David Aisenstat ■ Louis-Marie Beaulieu ■ Marc Caira Dianne Craig Chairman, President and Chairman of the Board President and Chief President and Chief Chief Executive Officer Conseil du patronat Executive Officer Executive Officer Keg Restaurants Ltd. du Québec Tim Hortons Inc. Ford Motor Company of Canada, Limited M. Elyse Allan ■ John M. Beck ■ Elaine Campbell President and Chief Executive Chairman President Robert S. Crosbie ■ Executive Officer Aecon Group Inc. AstraZeneca Canada Inc. Chairman GE Canada Crosbie Group Limited Kevin L. Beingessner Robert G. Card Alex Archila President and Chief President and Chief David M. Culver President, Potash Executive Officer Executive Officer Past Chair BHP Billiton Canada Inc. Coril Holdings Ltd. SNC-Lavalin Group Inc. Canadian Council of Chief Executives Katherine Bardswick David W. Binet John M. Cassaday ■ President and Chief President and Chief President and Chief Thomas d’Aquino Executive Officer Executive Officer Executive Officer Distinguished Lifetime The Co-operators The Woodbridge Corus Entertainment Inc. Member and Former Group Limited Company Limited Chief Executive Alain Champagne Canadian Council Mark J. Barrenechea Pierre Blouin President of Chief Executives President and Chief Chief Executive Officer McKesson Canada Executive Officer MTS Allstream Inc. Jim W. Davidson OpenText Corporation Neil Chrystal Chairman and Chief Charles Brindamour President and Chief Executive Officer Alfredo Barrios Chief Executive Officer Executive Officer FirstEnergy Capital Corp. Chief Executive Intact Financial Corporation Polygon Homes Ltd. Rio Tinto Alcan Marc de La Bruyère ■ Jack Broodo W. Edmund Clark Chairman Jim Baske President President and Chief Maclab Enterprises President and Chief Dow Chemical Canada ULC Executive Officer Executive Officer TD Bank Group Arthur A. DeFehr ■ ArcelorMittal Dofasco Inc. Lloyd Bryant Chief Executive Officer President and Chief Dean Connor Laurent Beaudoin ■ Executive Officer President and Chief Chairman Hewlett-Packard Executive Officer André Desmarais ■ Bombardier Inc. (Canada) Co. Sun Life Financial Inc. President and Co-Chief Executive Officer Pierre Beaudoin ■ ■ Bill Buckley ■ George A. Cope Power Corporation President and Chief Chair President and Chief of Canada Executive Officer ShawCor Global Executive Officer Bombardier Inc. Services Limited BCE Inc. and Bell Canada Paul Desmarais, Jr. ■ ■ Chairman and Co-Chief Executive Officer Power Corporation of Canada

38 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Paul G. Douglas J. Bruce Flatt ■ Anthony R. Graham Trent Henry President and Chief Chief Executive Officer President Chairman and Chief Executive Officer Brookfield Asset Wittington Investments, Executive Officer PCL Constructors Inc. Management Inc. Limited Ernst & Young LLP

William A. Downe ■ Dan Fortin Charles Guay Paul J. Hill ■ Chief Executive Officer President President and Chief Chairman, President and BMO Financial Group IBM Canada Ltd. Executive Officer Chief Executive Officer The Standard Life Assurance Harvard Developments Inc. Rupert Duchesne Harris A. Fricker Company of Canada – A Hill Company Group Chief Executive President and Chief Aimia Inc. Executive Officer Donald A. Guloien Christopher Huskilson GMP Capital Inc. President and Chief President and Chief Ian C. Dundas Executive Officer Executive Officer President and Chief Lauren Friese ■ Manulife Financial Emera Inc. Executive Officer Founder and Chief Corporation Enerplus Corporation Executive Officer Toshiya Inaoka TalentEgg A. Stewart Hanlon President and Chief N. Murray Edwards ■ ■ President and Chief Executive Officer President Alan W. Garner Executive Officer Mitsubishi Canada Limited Edco Financial Holdings Ltd. President and Chief Gibson Energy Inc. Executive Officer Duncan N. R. Jackman ■ Ted Egawa Marsh Canada Limited Robert Hardt Chairman, President and President and Chief President and Chief Chief Executive Officer Executive Officer Richard L. George Executive Officer E-L Financial Corporation Canon Canada Inc. Distinguished Siemens Canada Limited Limited Lifetime Member Bob Elliott Canadian Council Hunter Harrison Tom Jenkins ■ ■ Managing Director of Chief Executives Chief Executive Officer Chairman SAP Canada Inc. Canadian Pacific Railway OpenText Corporation Asim Ghosh ■ Darren Entwistle ■ ■ President and Chief Linda S. Hasenfratz ■ ■ Daryl A. Katz ■ Executive Chair Executive Officer Chief Executive Officer Chairman and Chief TELUS Husky Energy Inc. Linamar Corporation Executive Officer The Katz Group Zhi Fang Peter E. Gilgan ■ Robert Hattin ■ of Companies Chief Executive Officer Founder and Chief Chair Nexen Energy ULC Executive Officer Canadian Manufacturers Nitin Kawale Mattamy Homes Limited & Exporters President Dawn Farrell ■ Cisco Systems Canada, Co. President and Chief Russ Girling Duncan Hawthorne Executive Officer President and Chief President and Chief Edward S. Kennedy TransAlta Corporation Executive Officer Executive Officer President and Chief TransCanada Corporation Bruce Power Executive Officer Brian Ferguson The North West President & Chief Blake C. Goldring ■ John Helou Company Inc. Executive Officer Chairman and Chief President Cenovus Energy Inc. Executive Officer Pfizer Canada Inc. Janet Kennedy AGF Management Limited President Kenneth E. Field ■ Mark Henderson Microsoft Canada Inc. Chairman George F. J. Gosbee ■ President and Chief GreenField Specialty Chairman and Chief Executive Officer Hassan Khosrowshahi ■ Alcohols Inc. Executive Officer Ericsson Canada Inc. Chairman AltaCorp Capital Inc. Persis Holdings Ltd.

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 39 James S. Kinnear ■ Lisa S. Lisson Ron Mathison ■ President and Chief President and Chief President President and Chief Executive Officer Executive Officer Federal Express Canada Ltd. Executive Officer Precision Drilling Corporation Kinnear Financial Limited Matco Investments Ltd. Christine Lithgow R. Jeffrey Orr Thomas A. Kloet President and Chief Michael H. McCain ■ ■ President and Chief Chief Executive Officer Executive Officer President and Chief Executive Officer TMX Group Limited Aon Reed Stenhouse Inc. Executive Officer Power Financial Corporation Maple Leaf Foods Inc. Tetsuo Komuro Brandt C. Louie ■ Steve Orr President and Chief Chairman, President and Gerald T. McCaughey President and Chief Executive Officer Chief Executive Officer President and Chief Executive Officer Mitsui & Co. (Canada) Ltd. H.Y. Louie Co. Limited Executive Officer ShawCor Ltd. CIBC R. M. (Rich) Kruger Jon E. Love ■ ■ Michael J. Oxley Chairman, President and Managing Partner Bill McFarland President Chief Executive Officer KingSett Capital Inc. Chief Executive Officer E.I. du Pont Imperial Oil Limited and Senior Partner Canada Company Ken Lueers PricewaterhouseCoopers LLP Ryan Kubik President Marc Parent President and Chief ConocoPhillips Canada David I. McKay President and Chief Executive Officer President and Chief Executive Officer Canadian Oil Sands Limited Patrick Lundy Executive Officer CAE Inc. Chief Executive Officer Royal Bank of Canada Hal Kvisle Zurich Canada David V. Pathe President and Chief Terrance L. McKibbon President and Chief Executive Officer Paul Madden President and Chief Executive Officer Talisman Energy Inc. President and Executive Officer Sherritt International General Manager Aecon Group Inc. Corporation Guy Laurence 3M Canada Company President and Chief Lorraine Mitchelmore ■ Paul Pathy Executive Officer Chuck Magro President and Canada President and co-Chief Rogers Communications Inc. President and Chief Country Chair Executive Officer Executive Officer Shell Canada Limited Fednav Limited Jeff Lehrmann Agrium Inc. President Al Monaco Richard Payette ■ Chevron Canada Limited Paul A. Mahon President and Chief Chair President and Chief Executive Officer Canadian Chamber Bill Lennie Executive Officer Enbridge Inc. of Commerce President Great-West Lifeco Inc. Home Depot of Canada Inc. Claude Mongeau ■ John E. Peller ■ Paulo Maia President and Chief President and Chief Monique F. Leroux President and Chief Executive Officer Executive Officer Chair of the Board, President Executive Officer CN Andrew Peller Limited and Chief Executive Officer HSBC Bank Canada Desjardins Group Guillermo Moreno Peter Poppinga The Honourable Managing Director, Canada Chief Executive Officer Donald R. Lindsay ■ John P. Manley ■ Tenaris Vale Canada Limited President and Chief President and Chief Executive Officer Executive Officer William F. Morris Brian Porter ■ Teck Resources Limited Canadian Council Senior Managing Director President and Chief of Chief Executives and President, Canada Executive Officer Accenture Inc. Scotiabank Ronald N. Mannix ■ Chairman Joe Natale Coril Holdings Ltd. President and Chief Executive Officer TELUS

Kevin A. Neveu

40 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Randy Powell Bradley S. Shaw Kevin M. Sullivan ■ Jeff Vassart President and Chief Chief Executive Officer Deputy Chairman President Executive Officer Shaw Communications Inc. GMP Capital Inc. Cargill Limited Rocky Mountaineer Bruce Simpson Doug Suttles Frank Vettese David Rawlings Director & Global President and Chief Managing Partner Chief Executive Practice Leader Executive Officer and Chief Executive Officer – Canada McKinsey & Company Encana Corporation Deloitte JPMorgan Chase & Co. Ted Singeris Mark Sylvia Monique Vialatou Gordon Reid ■ President President and Chief Chief Executive Officer Founder, Chairman and Mercer (Canada) Limited Executive Officer and Country Manager Chief Executive Officer Empire Life Insurance BNP Paribas Canada Giant Tiger Stores Limited Geoffrey M. Smith Company President and Chief Curt Vossen Paul Reynolds Executive Officer Lonny Thiessen ■ President and Chief President and Chief EllisDon Corporation Founder and Chief Executive Officer Executive Officer Executive Officer Canaccord Genuity Group Inc. Ian Smith Western Manufacturing Ltd. Limited Chief Executive Officer Hartley T. Richardson ■ ■ Clearwater Seafoods Bill Thomas Donald Walker President and Chief Limited Partnership Chief Executive Officer Chief Executive Officer Executive Officer and Senior Partner Magna International Inc. James Richardson & Sons, Stephen Smith ■ KPMG Limited Chairman, President V. Prem Watsa ■ and Co-founder L. Scott Thomson Chairman and Chief John C. Risley ■ ■ First National Financial LP President and Chief Executive Officer President Executive Officer Fairfax Financial Clearwater Fine Foods Inc. Jamie C. Sokalsky Finning International Inc. Holdings Limited President and Chief Michael E. Roach Executive Officer Jochen Tilk Galen G. Weston ■ President and Chief Barrick Gold Corporation President and Chief Executive Chairman Executive Officer Executive Officer and President CGI Group Inc. Nancy C. Southern ■ ■ PotashCorp Loblaw Companies Limited Chair, President and Harold A. Roozen ■ Chief Executive Officer Alan D. Torrie Stephen G. Wetmore Executive Chairman ATCO Group President and Chief Chief Executive Officer CCI Thermal Technologies Inc. Executive Officer Canadian Tire Corporation, Ronald N. Stern ■ Morneau Shepell Ltd. Limited Calin Rovinescu President and Chief President and Chief Executive Officer Guy J. Turcotte ■ Gary Whitelaw Executive Officer Alberta Newsprint Company President and Chief Chief Executive Officer Air Canada Executive Officer Bentall Kennedy Group Don Streuber Stone Creek Resorts Inc. Lino A. Saputo, Jr. President and Chief Steve Williams Chief Executive Officer Executive Officer Louis O. Vachon ■ President and Chief and Vice Chairman Bison Transport Inc. President and Chief Executive Officer of the Board Executive Officer Suncor Energy Inc. Saputo Inc. John M. Sullivan National Bank of Canada President and Chief Sam Sebastian Executive Officer Managing Director The Cadillac Fairview Google Canada Corporation Limited

CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 41 COUNCIL STAFF

The Honourable John Eric Miller Sarah Reid Manley, P.C., O.C. Vice President, Policy, Communications Officer President and Innovation and Chief Executive Officer Competitiveness Fred Ninh Associate Susan Scotti Nancy Wallace Senior Vice President Vice President, Monique Raymond-Dubé Corporate Services Executive Assistant Ailish Campbell Vice President, Policy, Chantal Roy Patricia Matchem International and Executive Assistant to Senior Executive Assistant Fiscal Issues the President and Chief Executive Officer Meagan Lachance John Dillon Administrative Associate Vice President, Policy Joe Blomeley and Corporate Counsel Senior Associate Deirdre Bradley Administrative Associate Ross Laver Brian Kingston Vice President, Policy Senior Associate and Communications

42 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014

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