Seemingly destined to run the family business, Belinda Stronach has decided to leave Magna.
One of the most powerful women in the Canadian auto industry has tendered her resignation leaving observers guessing whatcaused Belinda Stronach to leave Magna International – and where she might show up next.
The daughter of Magna founder Frank Stronach, she will resign from her role as Executive Vice-Chair and member of the Board of Directors, effective December 31, 2010. Her move follows a settlement between the company and its founder, earlier this year, that saw Frank Stronach relinquish his control over most of the company he founded in a machine shop shortly after emigrating from Austria after the Second World War.
Magna has grown to become one of the world’s largest automotive suppliers, with revenues of more than $20 billion annually and plans to more than double that by mid-decade. But change has begun to sweep through what was a closely-run company that followed the oft-times eccentric mandates of Frank Stronach and family members, like Belinda, that long maintained control.
Nonetheless, despite changes in Magna’s governance and capital structure approved earlier this year by the company’s shareholders, Belinda Stronach still seemed highly likely to take control, many believed.
Yet the departure of Frank Stronach, and now his daughter, appears to be generating a favorable response from shareholders, the price of Magna stock spiraling upwards to a five-year high.
“The Board wishes to express our sincere and deep appreciation to Belinda for the valuable contribution she has made to Magna over many years and we wish Belinda every success in the future,” said Michael D. Harris, Lead Director.
Stronach, famous for flashy personal life which has included dating hockey stars and attracting a string of high profile boyfriends, has dabbled in Canadian politics and was considered for a time to be a serious candidate for prime minister.
Meanwhile, Harris said the Nominating Committee of Magna’s Board is in the process of reviewing the composition of the Board. The Nominating Committee has retained Russell Reynolds Associates, an internationally recognized firm, to assist in its search for potential future Board members, including a director to fill the vacancy created by Belinda Stronach’s resignation.
She has not announced her plans for the future, though many believe she could again seek a role in Canadian politics. But in a recent interview with TheDetroitBureau.com, father Frank confided that “while I don’t interfere in her life, I would encourage her not to do that.”
Stronach made his own failed bid for the Canadian Parliament some years back. He insists he is “busier than ever,” with not only a multi-year consulting contract with Magna, but as head of its spin-off electric vehicle division. The senior Stronach is also active in North American horse racing, another of his ventures now the largest track owner in the United States.
Paul A. Eisenstein contributed to this report.