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(May 8, 2008) Looking for a new job? How about president and CEO of Manulife Financial, or maybe chairman of Power Financial? At their respective annual shareholders’ meetings on Thursday, both firms announced the high-ranking executives would be retiring.

Manulife’s current president and CEO, Dominic D’Alessandro, will relinquish his duties in May 2009, while Robert Gratton, Power Financial’s chairman, is leaving effective immediately.

Arthur Sawchuck, chair of Manulife’s board, said he thought this might be coming. “The board was aware of the possibility that Dominic could elect to retire at the end of this year,” he said.

He adds that for the past few years, the company has been focused on CEO succession and expects to find someone to fill D’Alessandro’s role by the end of the year.

Gratton, who stepped down as Great-West Lifeco’s chairman last week, told shareholders that he felt the “timing for change is right.” It was also announced that Raymond McFeetors will become vice-chairman and Paul Desmarais, Jr., and Andre Desmarais will be co-chairs.

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Most Canadian business owners have no exit strategy

(May 8, 2008) Starting a business might be hard work, but selling it is no walk in the park either, according to a new Bank of Montreal study that says most Canadian business owners have no exit strategies.

The poll, conducted by Harris/Decima, found that 56% of businesses surveyed were in the later stages of their enterprise, but only 21% have named a successor. Of the companies that didn’t have an exit strategy in place, 40% thought it was too early to start that process.

“Our research and experience advising business owners across Canada shows many are unprepared for the inevitable,” says Sean Foran, vice-president of succession planning at BMO Harris Private Banking. “Whether they intend to sell their business or hand it down to a family member, it’s important they begin planning as early as possible to ensure they get the most out of the many years of work they have put into the business.”

The survey also found that 40% of respondents would like to sell their business to an outside party, while 17% said they would sell it to a family member.

Eighty-five percent of businesses were started by the current owner or by someone in the previous generation.

When the time does come to sell, most owners said they would invest the proceeds from the sale to eventually use for retirement.

“Clearly some entrepreneurs are concerned the sale of their business will not sufficiently subsidize their retirement lifestyle,” says Foran. “That’s why it’s important they maximize the proceeds of the sale of their business by investing that money wisely with the aid of a professional advisor.”

(05/08/08)