Morneau Shepell

In 1966, Frank Morneau founded W. F. Morneau & Associates, an actuarial and benefit consulting firm.[7] The firm expanded to open its first U.S. office in 1987 and it launched its administrative outsourcing practice in 1996.[8]

W.F. Morneau & Associates merged with Sobeco in 1997 to establish Morneau Sobeco, led by Bill Morneau as president and chief executive officer.[9] Morneau Shepell, as it is known today, was formed in May 2008 through Morneau Sobeco's acquisition of Shepell-fgi – Canada's largest provider of employee health management and workplace training and education services – from Clairvest Group Inc. for $321.9 million.[10]

In the years since, Morneau Shepell has made a number of acquisitions, including SBC Systems Company Inc. (U.S. provider of employee benefits administration systems) in January 2012,[11] Mercer Canada's pension and benefits outsourcing business in November 2012,[12] Ceridian's U.S. health and welfare benefits administration business in August 2015,[13] Montreal-based Solareh (national health and wellness services provider that offers employee assistance programs) in December 2016[14], Montreal-based Longpré (employee assistance and wellness program provider) in January 2017[15], LifeWorks (platform focused on EAP, employee engagement, rewards and recognition, and human resources communications) in July 2018[16] and Mercer’s stand-alone, large market, health and defined benefit pension plan administration business in the United States.[17]

Bill Morneau, the current finance minister of Canada, resigned from his position as executive chair of Morneau Shepell in October 2015.[43] Since his resignation, Mr. Morneau has been subject to intense scrutiny regarding his holdings in the company, including his use of a blind trust.[44] There have been allegations that Morneau Shepell stands to benefit if the proposed small business taxation legislation is passed.[45] Critics state that Morneau Shepell would benefit if the proposed changes prompt more people to use individual pension plans, a claim which Morneau rejects.[46] In December 2017, Morneau Shepell said that individual pension plans account for less than one 25th of one per cent of its revenues.[47]

Mr. Morneau has also been criticized for holding shares in Morneau Shepell outside a blind trust, and thus being in a conflict of interest situation with respect to the pension plan changes.[48] In response, Mr. Morneau said that he acted on the recommendation by the Conflict of Interest and Ethics Commissioner Mary Dawson, who stated that shares could remain behind a conflict-of-interest screen overseen by the minister's chief of staff, and that a blind trust was not necessary.[49] The Conflict of Interest Act states "that any such assets, irrespective of their value, must be divested by either the establishment of a blind trust or by way of sale at arm's length."[50] Mr. Morneau responded to the controversy by stating that he sold his remaining shares in Morneau Shepell and donated all of the money he's profited as a result of an increase in the value of share to charity.[48]

It was reported that Mr. Morneau and his father sold Morneau Shepell shares before the tax change announcement in December 2015.[51] Media reports state that Mr. Morneau sold 680,000 shares for proceeds of $10.1 million before December 7, 2015. Subsequently, Mr. Morneau is said to have sold an additional 320,000 shares on December 17, 2015, for a profit of $4.5 million, which he donated to charity.[52] It was later reported that Mr. Morneau's father sold 100,000 shares in Morneau Shepell on November 23, 2015 and 100,000 shares in Morneau Shepell on December 3, 2015.[53]

In March 2017, Morneau Shepell announced Alan Torrie's retirement from the company and Stephen Liptrap as his successor to the position of president and chief executive officer, effective May 5, 2017.[54]

• Morneau Shepell corporate website