The Conversation
By Dimitry Anastakis
November 8th, 2021
Bitter family feuds and succession battles are not new to the Canadian business landscape. In fact, some of Canada’s most prominent family-owned firms have had very public brawls…
In 1925, Vincent Massey, the scion of one of the wealthiest families in Canada, did something that Ed Rogers today would find unthinkable. He quit.
Massey was the fourth-generation heir to his family’s Massey-Harris farm equipment company, then already well on its way to becoming Canada’s first truly global firm. Despite this, Massey decided that his future lay not in tractors but in public service and philanthropy. He later became governor general of Canada.
In realizing that his founding family needed to cut its ties with their namesake firm, Massey set an example that Rogers, heir to his own family’s giant corporation, might consider emulating.
Yet it’s clear that the Rogers scion has no intention of following in Massey’s wise footsteps — especially after a British Columbia court ruled he’s the legitimate chair of Rogers Communications Inc. It’s a major legal victory in his battle against his mother and sisters to take control of the family firm that’s drawn international comparisons to the HBO show Succession.
Instead, Rogers’ stubborn willingness to put his father’s company, its shareholders, its customers and its reputation at risk for a power play to assert control smacks of poor judgment and hubris.
He may have won the messy legal battle to control the company, but the comparison between Massey and Rogers reveals important lessons that can be learned about the pitfalls — and benefits — of family-run firms in Canada.
From Vincent Massey to Ed Rogers: Canada’s history of family firm feuds rivals Succession
These historic fights … reveal the competing dynamics of family firms. Some are positive. On the one hand, a closely held family firm keeps the business “in house” for generations, ensuring a steady hand, a stalwart vision and values beyond the bottom line. Wealthy families want to leave a legacy, which often results in generous philanthropy. At the same time, families that hold on too long or ignore outside advice until it’s too late … illustrate how a family firm can fumble away a legacy that might have taken generations to build. A smart family also knows when to make a dignified exit.
Dimitry Anastakis, Professor, University of Toronto
