IGM Financial gets major leadership shakeup

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This article was published 14/09/2020 (2028 days ago), so information in it may no longer be current.

A major shakeup at IGM Financial Inc. has been brought about by the retirement, for health reasons, of out-going CEO Jeff Carney.

The company announced Carney’s retirement on Monday because of a diagnosis of early stage Alzheimer’s disease.

James O’Sullivan a 29-year veteran of senior executive positions at Scotiabank, takes over as CEO of IGM Financial Inc., the parent company of IG Wealth Management (formerly Investors Group), Mackenzie Investment and a few other operating companies.

Carney, 57, was also the CEO of IG Wealth Management but the board decided to split the work up, announcing that Damon Murchison, currently executive vice-president and head of retail of Mackenzie Investments, will become president and CEO of IG Wealth Management.

As the CEO of IGM for the past seven years, Carney was the architect of an overhaul of the company (that included the name change to IG Wealth Management). Among other things, his leadership created better connections with clients and a greater emphasis on attracting more high net worth clients.

Jeff Orr, chairman of the board of IGM Financial, said that although there is sadness regarding Jeff Carney’s health situation, there is optimism about future success for the company going forward.

Orr would not say how much time they had in finding a replacement for Carney.

“All I will say is that Jeff made it easy, if I can put it that way, to come to a good outcome in the way he handled it,” Orr said in an interview adding that Carney brought about tremendous change focusing on how to best serve the clients.

“He had positioned IGM, IG Wealth Management and Mackenzie and the rest of the companies to be in a much more competitive and stronger position than when he came on board,” said Orr. “He created a lot of momentum and set us up for a lot of future success.”

O’Sullivan comes to IGM Financial after a lengthy run at Scotiabank with ever increasing senior positions. He left the bank last fall as group head of Canadian banking, but said he did not plan on retiring.

When thinking about what he wanted to do next he said at the top of his list of criteria was quality and purpose and he believes IGM Financial is both a high quality enterprise and the purpose associated with wealth management is “all about empowering Canadians financially.”

O’Sullivan said, “When I got this call I saw quality and purpose and that was a fantastic start.”

In an interview Orr was careful to point out that IGM Financial — which is responsible for $173 billion of assets under its management from its host of mutual funds and financial planning consultancy — would not experience any disruption in its management.

“Today’s message is one of continuity,” Orr said. “While we recognize and are sad for what Jeff Carney is going through… we are building on momentum and optimism for continued growth in the future.”

IGM Financial is majority owned by Power Financial out of Montreal and is a sister company to Great-West Lifeco, also based in Winnipeg.

O’Sullivan will continue to live in Toronto, as did Carney, but will be here often.

“I fully understand how important these businesses are to Winnipeg and I’m looking forward to being introduced to the Winnipeg and Manitoba business communities,” he said.

Murchison, who had been working out of Toronto, will acquire a Winnipeg residence to run the Winnipeg-based IG Wealth operations.

“I am excited to lead IG Wealth Management into its next phase of growth,” Murchison said in a prepared statement.

In addition to the appointment of O’Sullivan and Murchison, Mark Kinzel, currently executive vice-president of financial services for IG Wealth Management, has been appointed vice-chair of IG Wealth Management.

“This company is well rooted in Winnipeg and I don’t see anything in these announcements that will do anything to diminish that,” Orr said. “I think it will augment success of the overall group including IG Wealth and that, ultimately, is good for Winnipeg.”

martin.cash@freepress.mb.ca