Briefing

Desmarais brothers step down as Power Corporation co-CEOs

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The departure of brothers André and Paul Jr. after nearly a quarter-century paves the way for Jeffrey Orr to take the helm. Previously the CEO of Power Financial Corporation, he is the first non-family member to become CEO of the Montreal-based multinational. (The Logic)

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Talking point: The company said the shuffle was part of a simplification of Power’s corporate structure, which would see the main company buy out Power Financial. Yet the elimination of the company’s dual-holding structure, along with Orr’s elevation to the CEO’s office, is recognition that investors have long criticized Power’s bulky governance. (Indeed, shares jumped over eight per cent on the news.) Paul Jr. and André aren’t straying too far, however; the sexagenarian brothers become chairman and deputy chairman, respectively, and the family is investing new capital in Power to ensure it remains in control.