Community-minded corporate executive

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This article was published 23/05/2019 (2551 days ago), so information in it may no longer be current.

For many of those who follow the Manitoba economic scene, James Richardson & Sons Ltd. epitomizes the deep roots, savvy business acumen, quiet money and low-key public persona of the business community.

When he took over as CEO of the family business in 1993, Hartley Richardson, now 64, became the fifth-generation Richardson to run what is probably the largest family-owned enterprise in the country. He has evolved with the region’s economy into a trusted, community-minded corporate executive with an enviable track record of stewardship of the family fortune and the kind of community leader that Winnipeg absolutely needs in order to flourish.

Tonight he’ll be in front of about 1,500 people receiving the 2019 International Distinguished Entrepreneur Award (IDEA) from the University of Manitoba Asper School of Business. He is the third Manitoban to receive the award in its 35-year history, alongside Israel Asper and Albert Cohen.

Running a business that old, that big — about $10 billion in annual revenue before it acquired the Wesson vegetable oil division from Conagra earlier this year — and whose only shareholders are extended family members, takes a singular talent.

Shortly after taking over following his father George’s 27-year run as CEO, the company sold its Richardson Greenshields brokerage firm to the Royal Bank of Canada in an all-stock deal. The family has retained its RBC shares and remains one of the largest non-institutional owners of the largest bank in Canada.

Under his leadership, the company’s grain division was a major player in industry consolidation and has become the largest canola handler and oat miller in the world. A couple of years ago its oil and gas company, Tundra Oil and Gas, invested more than $1 billion in a midstream pipeline operation. In addition to good sized real estate holdings, it is also a partner in one of Canada’s largest independent wealth management firms, Richardson GMP.

In a casual question and answer session with students from the Asper School and during an interview with the Free Press on Wednesday, Richardson spoke about the future of running a large family business, his decades-old perspective on trade with China and the importance of giving back to your community.

Q: In many ways James Richardson & Sons Ltd. is symbolic of Manitoba economic dynamics. What do you think makes Manitoba tick?

A: We are not afraid to punch above our weight. When we attack a community project, we do it collectively. The collective will of the community makes a difference in everything from the United Way to other projects in the city.

Also, there is extraordinary loyalty to this community.

When I look at money raised from a philanthropic standpoint to support various initiatives it is clear — the fabric of the people of the community makes the difference.

Q: You have been involved with redevelopment at Assiniboine Park for many years. Is that a favourite project of yours?

A: I got involved many years ago in the renaissance of the Assiniboine Park. Like many projects it speaks to the entire community. Go there any weekend and you’ll find people from across the community there.

It was is in bad need of investment. The powers that be at the city at the time looked at it as a liability. Some of us saw it as an asset and like any asset you need to make investments in it. It is now world class. I, and many others, are very proud of the project.

Q: Are there ever any thoughts about operating the business from somewhere else?

A: We are very proud to be headquartered in Winnipeg. We have offices in Calgary and Toronto and many places around the world… but this is home. This is where our roots are. Winnipeg has been very good for our family. There has been no discussions at any time about moving our head office.

Q: Your company recently had its export licence revoked in China after more than 100 years of selling grain there. How do you think the issue will be resolved?

A: I must say it took us off guard. We have been good friends to the Chinese for more than 100 years.

My grandfather sent representatives there in 1910. We opened an office in Shanghai in 1923. In the 1950s when no one else would feed China, my father went over and sold them grain and it was all done on a handshake.

For 15 years there was never one contract. This (current dispute over canola) is clearly political. We are the roadkill. It’s going to take the two governments to resolve this. It is hard to see what their end game is. They are alienating trading partners from around the world.

Q: What do you think about the changes taking place in the global trading environment?

A: My biggest concern under the Trump administration is that there is more protectionism coming back into trade. We had made great strides with free trade and open borders.

This is all changing very quickly as the Americans close their borders to anybody that is not going to play by their rules. I am a free trader and it is disappointing to see how quickly it has gone the other way.

Q: Can you see the day that James Richardson & Sons might transition from a private family business to a publicly listed company?

A: No. Being a private company has advantages and disadvantages. We don’t have access to capital markets like public companies do, but that instils a discipline to keep the balance sheet strong.

Over the course of history we have borrowed too much on occasion and got into some trouble, but the balance sheet is in a very good position today. We could take on some further significant investment.

The advantage of being private is that you don’t have to deal with short-term results like quarter-to-quarter or even year-to-year. Our recent acquisition of the Wesson brand in the U.S. will have multi-generational results.

Q: What are your succession plans?

A. I have thought about succession but I’m not planning to step down soon. I am not a very good golfer. What would I do? We are in transition right now between the fifth and sixth generation.

We have a policy that the sixth-generation members have to spend five years getting experience in a different business before coming to work for us. (None of the sixth-generation Richardsons are currently working for the family firm.)

It is working out well. Quite a number have gone on to develop businesses of their own.

Q: What are your leisure pursuits?

A: My favourite pastime is spending time at Lake of the Woods. I still enjoy skiing and tennis and do that as much as I can.

martin.cash@freepress.mb.ca