LOOK BACK: 2015 was a roller-coaster year for B.C.’s companies and entrepreneurs in all sectors of the economy as chronicled in BIV’s summary of the year in business. It began with U.S. retail giant Target pulling the plug on its Canadian operations and continued with an ever-lengthening list of bottom-line challenges generated by plunging energy prices, a downbound dollar and quirky weather
Target announces it’s pulling out of Canada
In a clear sign the company missed the mark in its attempt to win the hearts of Canadians, Target Corp. (NYSE:TGT) has announced it is pulling out of the country.
After struggling to turn a profit for 20 months, the company has decided to close all of its 133 Target Canada stores across the country, including 15 in British Columbia, and lay off all of its 17,600 employees countrywide. The company owes $2.4 billion to creditors.
Target’s insolvency is the biggest in the history of Canadian retail, according to Lou Brzezinski, a partner at Blaney McMurtry, a law firm working on behalf of several of the retail chain’s creditors.
Bank of Canada responds to plunge in oil prices by cutting overnight rate
The Bank of Canada has surprised many analysts by announcing it is cutting its overnight rate target to 0.75% from 1%, where it had sat for more than four years.
“The bank’s policy action is intended to provide insurance against these risks, support the sectoral adjustment needed to strengthen investment and growth, and bring the Canadian economy back to full capacity and inflation to target within the projection horizon,” Canada’s central bank said in a release.
Choices Markets announces expansion to Commercial Drive
Choices Group has announced it is buying the Drive Organics independent grocer on Commercial Drive for an undisclosed amount, saying it plans to rebrand the store as a Choices Markets location within a few months.
The addition increases the Vancouver-based grocer’s store count to eight locations, including seven in Metro Vancouver and one in Kelowna.
Choices Markets CEO Ishkan-dar Ahmed said he expects the store to do well on Commercial Drive due to its well-known branding.
“It’s like with Starbucks,” Ahmed said. “Customers know what they’re getting and they know that we stand for a certain quality for our fresh produce, our deli and our meat offerings.”
He also said that although the store’s purchasing costs could go down due to economies of scale, he doubted there would be price cuts in the store.
Former notary public fined $44m for Ponzi scheme
A former notary public has been fined $33 million for running a Ponzi scheme that defrauded hundreds of investors of at least $100 million.
The BC Securities Commission (BCSC) announced January 21 Rashida Samji has also been ordered to pay an additional $10.8 million on top of the $33 million fine, for a total of $44 million in penalties.
The $10.8 million covers the difference between the amount deposited by the minimum 200 investors she defrauded and the amount paid out to them.
The BCSC determined in July 2014 that Samji had perpetrated fraud against at least 200 investors, who were told she would hold their money in trust and it would be used only to help secure financing for a winery.
“What makes it even more egregious is that the fraud involved a Ponzi scheme in which the entire investment was premised on a lie,” a BCSC panel wrote in its January 16 decision.
B.C.’s highest-paid CEOs trail the rest of Canada: report
Chuck Jeannes | Photo: Chung Chow
Compensation for Canada’s top 100 CEOs reached levels in 2013 not seen prior to the global recession, according to a study from the Canadian Centre for Policy Alternatives (CCPA) released January 1.
The left-leaning think-tank found total payments, which include base salary, stock options and bonuses, averaged $9.2 million among the highest-paid CEOs in Canada during 2013.
“The last time CEO compensation was this high, Canada was at the peak, before the crash in 2007. That year, Canada’s highest-paid 100 CEOs averaged $10 million,” the January 1 report said.
The CCPA examined the 2013 earnings of CEOs at the publicly listed Canadian companies on the Toronto Stock Exchange and found total compensation for the top 100 reached $921 million.
The highest-paid executives in B.C. include Goldcorp’s (TSX:G) Chuck Jeannes, who made $10.2 million; Telus’ (TSX:T) Darren Entwistle, who made $10.1 million before leaving his position in May 2014; and Teck Resources’ (TSX:TCK.B) Donald Lindsay, who brought in $9.8 million.
Profile of John Montalbano, CEO, RBC Global Asset Management: RBC boss makes a tough decision to step aside
“To me, that’s how leaving should feel: it can never be about you; it’s got to be about your business” | Photo: Chung Chow
