Ted Rogers, founder and chief executive officer of Rogers Communications (which owns Benefits Canada) died Tuesday at his home in Toronto. He was 75.
“Ted Rogers was one of a kind who built this company from one FM radio station into Canada’s largest wireless, cable and media company. A leader also in giving to the community through his and Loretta’s many philanthropic initiatives. He will be sadly missed,” says Alan Horn, chairman of Rogers Communications and acting CEO.
Rogers vice-chairman Phil Lind worked with Rogers for nearly 40 years. “Our sincerest condolences to Loretta, the children and the grandchildren. He will be missed by so many. Though Ted was relentless in business and building this company over the years, he was also very much a family man. His impact on family, community and country was as impressive as his business success,” Lind says.
Rogers suffered from congestive heart failure and saw his health weaken over the past few years.
His successor as CEO will be addressed by the Rogers Communications Inc. board of directors. Horn, who has been acting chief executive since October, will continue in that role until a successor is chosen.
Benefits Canada staff wish to offer their sincere condolences to the Rogers family.
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Manulife Boosts Reserves, Posts Loss
Manulife Financial is beefing up its capital reserves, after the insurance giant announced its first ever quarterly loss, totaling $1.5-billion in fourth quarter.
“We are disappointed with this poor performance,” says Dominic D’Alessandro. “It is primarily due to the unprecedented decline in worldwide equity markets which for the 11 months ended November 30, 2008 are down by 33% in Canada, 39% in the U.S. and by an average of 45% in Asia.”
D’Alessandro pointed out that the fundamentals of the company remain solid.
The company will issue $2.125 billion in common equity, with $1.125 billion being sold as a private placement to eight existing institutional investors, at $19.40 per share (versus Monday’s closing price of $20.46). The remaining $1 billion will be sold as a bought deal public offering. The move will raise the company’s consolidated capital ratio to about 235%.
“This issue of common shares along with the renegotiated credit facilities will noticeably bolster our already strong capital position” says D’Alessandro. “These transactions provide us with the flexibility to absorb the accounting impact of future volatility in financial markets and, as importantly, will allow us to take advantage of acquisition opportunities that are emerging out of the current industry environment.”
He adds that the increase in reserves reflected the extremely conservative view that the market downturn was permanent. Assuming the markets eventually recover, the reserves would be released into income.
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Government Employees Make More: Study
A study by the Canadian Federation of Independent Business (CFIB) finds that wages paid to federal government employees are much higher than what private sector employees make in equivalent occupations, and even higher still when pensions and benefits are added.
Federal government employees earn an average $60,924 annually compared to $51,947 in the private sector, a difference of 17.3%. When pensions and other benefits are included, the gap widens to 41.7% in the federal public sector.
The research also shows there is an overall wage gap of 7.9% between comparable provincial government and private sector occupations across Canada. On average the annual pay of these provincial employees is $52,863 while that of equivalent private sector workers is $49,002. When pensions and other benefits are included, the gap jumps to 24.9%
“The time is long overdue for the federal and provincial governments to stop dipping into taxpayers’ pockets to finance their payrolls,” says FIB president Catherine Swift. “With the federal government facing the real prospect of a deficit going forward, and Ontario facing a projected $500 million deficit what’s needed is a reality check by our political leaders to shrink the wage disparity between the public and private sectors.
The wage differential was derived from census data representing more than 3.7 million full-time employees in 199 occupations.
To read the study on the CFIB’s website, click here.
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Integra, Lyxor Form Strategic Alliance
Integra Capital and Lyxor Asset Management, a subsidiary of Société Générale, have announced a strategic alliance to service pension funds in Canada.
Under this alliance, Integra will introduce Lyxor’s hedge fund platform and funds of hedge funds to Canadian registered pension plans.
“Institutional investors demand transparency, liquidity, and superior risk management in today’s investment environment,” says Graham Rennie, chief executive and managing partner of Integra Capital. “Lyxor Asset Management is one of the few firms in the world that delivers hedge funds and funds of hedge funds with these critical qualities.“
As of October 2008, Lyxor managed US$84 billion worth of assets and specializes in three areas of expertise: alternative investments, exchange traded funds and structured management.
Separately, Integra Group Retirement Services announced the launch of the seventh release of its Governex program, which includes a new retirement planner.
The retirement planner is an interactive tool designed to help members create their own personal retirement plan and map how long their investments should be able to support their desired retirement lifestyle.