Magna Cum Laude: How Frank Stronach Became Canada's Best-Paid Man.

Robert W. Sexty is a commerce professor at the Memorial University of
Newfoundland and author of Canadian Business: Issues and Stakeholders.

Magna Cum Laude is a revised and expanded version of a hardcover published in 2006. Surprisingly, Lilley’s history of Magna is the first available and is unauthorized, as Magna’s CEO, Frank Stronach, refused to cooperate. Stronach had commissioned three authors to write authorized corporate histories or biographies but backed out of the deals. Lilley used former managers and employees plus media coverage as the main sources of information on Stronach and Magna. Although the book is a comprehensive overview, it contains no footnotes or references.

Lilley traces Stronach’s background starting with his birth in Austria. Seventeen chapters describe Stronach’s personal life, the formation of Magna, and the many triumphs and disasters over the company’s 50-plus years. Magna is described as a very successful auto parts manufacturer who was innovative meeting the challenges of the auto industry. The disasters were mainly in Stronach’s personally motivated involvement in non–auto parts ventures. These distractions from the core business included politics when he ran for Parliament and investments in horse racing and race tracks, magazine publishing, theme parks, restaurants, ski resort, tennis equipment, golf courses, a luxury airline, a professional soccer team, and various real estate projects. All were failures compared to the auto parts business, with Stronach’s infatuation with horse racing and race tracks being the most disastrous. The second half of the book’s 17 chapters focuses on these disasters.

Stronach is portrayed as an entrepreneur, but despite his success not the most desirable. He used multiple voting shares to maintain control and abuse minority shareholders. He advocated free enterprise but sought and accepted government largesse. He hired and fired managers arbitrarily and paid himself very well. He made impulsive decisions, moving from one project to another, most of which were costly to the company. He makes strategic moves, like his partnership with Russian businessmen, that leave shareholders and business specialists staking their heads.

Lilley will be able to revise the book again and again as Stronach keeps moving on and doing unpredictable things. He is now seeking a legacy as the owner of a car manufacturer at a time when the automobile industry is in crisis. There will be an end, as Stronach is nearly 80. Lilley will be able to compose a fascinating obituary.