How Frank Stronach got started on Magna International?

Question

Also, write a summary of his business (Magna International).

Answer 1

In 1956, he started his first business, Multimatic Investments Ltd., in the old manufacturing district of Toronto. In 1969, his firm acquired its first automotive parts contract and merged with Magna Electronics. In 1973, the name was converted from Multimatic Investments Ltd to Magna International Ltd., Over the following decades, after several mergers and acquisitions, his business gradually became the major force it is today. Even though Frank Stronach was part of the labour movement in the 1970s and 1980s, he is well known for his opposition to trade union representation for his employees.

Recently, Stronach has been criticized for his multiple voting shares, which allow him to have majority voting power despite owning only 4% of Magna's equity. His pay packages in the past few years which have been around $30 to 50 million CAD have also aroused concern since he only holds the non-operational role of non-executive chairman, although he still wields vast power in this position (Brian Tobin quit as CEO of Magna's entertainment division, likely because Stronach would not give him autonomy to operate). As a result, Ontario Teachers Pension fund withheld their votes from Stronach and his close allies when it came time to re-elect Magna's board of directors. Some proponents of corporate governance have even made analogies between Stronach and Conrad Black's control of Hollinger Inc. Stronach's blunt response was to tell unhappy investors "if they don't like the restaurant, then don't eat there".