Jay Hennick buys his way to fame at the University of Ottawa

Business program is named to honour FirstService CEO for $500,000 donation Ottawa - Jay Hennick, founder of the property management firm FirstService, has bought the right to put his name on a business program at the University of Ottawa in return for a $500,000 donation and an agreement to set up an endowment fund for students. The business and law course at the university will now be known as the Jay Hennick LL.B-MBA Program. University leaders see nothing wrong with the idea. Hennik graduated in law from the U of O in 1981.

Jay Hennick speaking at the U of Ottawa - Fulcrum photo

This is the same company that gave the National Union of Public and General Employees (NUPGE) a hostile reception last June when confronted at their annual meeting about the issue of dual class voting shares.

Dual-class shares allow top corporate executives to control a company even though they own only a small percentage of the total number of a company's outstanding shares.

Hennick now appears to be using a similar approach to burnish his image at one of the country's better known universities. For a relatively small amount of money his name is attached indefinitely to the university and to every future student who passes through his program.

Great return on investment

On the face of it, it looks like a pretty stellar return for such a modest investment. Yet the university seems happy to take the money and not worry about the way it looks.

"In talking to Jay, he seems to be passionate about this program … based on his business experience," Michael Kelly, the dean of the school of management, told The Fulcrum, the university's newspaper, in this week's edition.

Kelly defends the move as a good one for the university but others disagree, including NUPGE national representative Mike Luff, who also spoke with the newspaper.

"A university is supposed to be a beacon of guidance and integrity for aspiring leaders, but a quick look at the record of Mr. Hennick’s company on issues such as good corporate governance and respect for fundamental human rights raises serious questions about why the university would want to be associated so closely with this company," Luff says.

College Pro

A couple of years ago Canadian Business magazine touted Hennick as a man of modest business wealth - with a mere $46 million to his name - but tagged him as one of "Tomorrow's Titans.'

"We foresee great things for Jay Hennick. Sure, his current net worth is on the paltry side for the time being (at least as far as the Rich 100 is concerned), but at the rate his company is growing, the FirstService CEO is almost surely headed for the list," Canadian Business wrote.

"As its name suggests, the company provides services in a number of areas, including property management and security to consumers and businesses. For instance, College Pro Painters and Intercon Security are among the 16 companies it owns."

College Pro? That's a surprise. Most people think it's an outfit run by college kids earning money for their next school year. Even the web site implies this. "Welcome to College Pro Painters," it says. "Started in 1971, we are North America's original student painting franchise system."

Jay Hennick's name is nowhere to be found. But who knows? Maybe some of the business students at the U of O will end working for College Pro (and Hennick) to help put themselves through his program.

More information on the dubious record of FirstService and the full text of the Fulcrum report are available at the links below. NUPGE

More information:
• The Fulcrum: Renamed program causes controversy
• NUPGE, SEIU target FirstService over corporate governance
• David Beatty urged to resign from dual-class boards
• Report: The Disadvantages of Dual-Class Structures to Public Shareholders pdf
• NUPGE, SEIU issue report on dual-class stock
• Contact: Larry Brown or Mike Luff, NUPGE, 613-228-9800

Web posted by NUPGE: 10 November 2005

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