Mark Carney smiles and speaks to supporters during his Liberal leader campaign launch in Edmonton, on Jan. 16.JASON FRANSON/The Canadian Press
Mark Carney resigned from Brookfield Asset Management Ltd. BAM-T and a number of business roles on Thursday as he launched a bid to lead the federal Liberal Party, cutting ties with a prestigious corporate career that he built after rising to prominence as a leading central banker.
As Mr. Carney stepped into the political arena, he said he has forfeited a number of executive, board and advisory positions he took on in recent years, which had collectively made him an influential and well-paid figure in the corporate world.
He was Brookfield Asset Management’s board chair and head of transition investing, which was arguably his most prominent job in recent years – and his main source of income. At Brookfield, he helped raise more than US$25-billion for two funds that are among the world’s largest pools of private capital earmarked for funding the transition to net zero.
The former governor of the Bank of Canada and the Bank of England also said he stepped down as chair of the board of Bloomberg LP, the media and financial data company controlled by billionaire Michael Bloomberg; the board of payments processor Stripe Inc.; an advisory board for investment giant PIMCO; and as UN Special Envoy for Climate Action and co-chair of the Glasgow Financial Alliance for Net Zero, or GFANZ, a once-promising effort to marshal the world’s largest financial institutions to shift to a low-carbon economy that has recently been unravelling.
“All of those roles, I resigned today,” Mr. Carney told reporters after announcing his candidacy to be Liberal leader and prime minister. “Just to be clear: I resigned all my roles, cut all my ties. I am all in.”
Mr. Carney said he has not yet taken further steps to comply with conflict-of-interest rules that govern cabinet ministers and MPs but pledged that he would if he wins the Liberal leadership.
“I’m a citizen that is running for a position,” he said. “As soon as I’m part – with success – of the government … I will absolutely proactively engage and follow them.”
As a leadership candidate with no seat in the House of Commons, Mr. Carney is not subject to the rules governing conflicts of interest that apply to MPs and public office holders, a spokesperson for the federal Ethics Commissioner confirmed in an e-mail. That means he is not required to take specific steps to manage potential conflicts during the leadership contest, such as placing assets he earned in his corporate career in a blind trust.
If Mr. Carney were to win the leadership race and become prime minister, he would then be subject to the Conflict of Interest Act, and he could be subject to the Conflict of Interest Code for Members of the House of Commons if he wins a seat in a federal election. That would prohibit him from holding outside employment or holding assets whose value could be affected by government decisions or policy, among other things.
The pay Mr. Carney’s earned from his corporate roles is not publicly disclosed, but he stands to give up substantial income and financial benefits to pursue a life in politics.
Brookfield does not publish Mr. Carney’s compensation, and he does not hold Brookfield shares outright. But he has 41,357 of what are called deferred share units, each of which represents a Brookfield share. They are worth more than $3.2-million at the recent TSX trading price of around $79.
Brookfield has also given Mr. Carney 503,049 stock options in three grants since December, 2022. (Stock options give executives the right to purchase company shares at a set exercise price for an extended period. But options are only usable if the market price is above the exercise price.)
Based on Brookfield’s recent trades on the New York Stock Exchange at US$55, and the stock’s closing prices on the days Mr. Carney received the grants, the options have potential profits of more than US$9-million.
“Concurrent with the launch of Mr. Carney’s campaign, Brookfield has accepted his resignation from the company,” the asset management giant said in a statement.
“We are sorry to see him leave, but he does so to fulfill his deep sense of public service to Canada and we wish him all the best in his new pursuit,” Brookfield chief executive officer Bruce Flatt said in the statement.
Mr. Flatt was appointed chair of the board of Brookfield Asset Management to replace Mr. Carney, while also retaining his CEO title. The chair of the asset manager’s parent company, Brookfield Corp., is TD Securities deputy chair Frank McKenna, a former New Brunswick premier and Canadian ambassador to the United States.
On Thursday, Conservative MPs Michelle Rempel Garner and Michael Barrett called on Mr. Flatt to disclose Mr. Carney’s compensation from his roles at Brookfield.
“It is vitally important for Canadians to know whether or not Mr. Carney’s compensation with Brookfield could increase if the Liberals implement his policy ideas,” the MPs wrote in an open letter to Mr. Flatt.
In a statement, a Brookfield spokesperson said the company is not required to release detailed information about Mr. Carney’s compensation.
“We adhere to all required disclosures for our directors and as a matter of policy do not disclose personal, confidential information of current or former employees,” Kerrie McHugh said.
Bloomberg and Stripe, which are private companies, do not disclose compensation for their directors.
Stripe and other payment processors have been in Ottawa’s crosshairs after they declined to pass on savings from agreements the federal government reached with Visa and Mastercard that are designed to lower credit card swipe fees for merchants. Ottawa said it is considering legislation to compel payment providers to pass on the savings, but it is not clear whether Mr. Carney would follow through on the party’s pledge if he were Liberal leader.
With a report from David Milstead.