he saved a bob astley’s - exchangemagazine.com · astley’s encore he saved a symphony; now he...

PH

OT

OG

RA

PH

Y:

EX

CH

AN

GE

MA

GA

ZIN

E

14 l exchangemagazine.com l JANUARY/FEBRUARY 2007

After you have conducted the res-cue of a major symphony orches-tra, what do you do for an

encore? Well, if your name is Bob Astley– quite a lot, actually.

Astley’s name was in the news oftenin the last few months, as chairman ofa Kitchener-Waterloo Symphony thatwas threatened with imminent bank-ruptcy. His comments, his actions, andhis decision to put his chequebookwhere his mouth was, all drew consid-erable attention.

But meanwhile – and now that thesymphony’s financial crisis has beensolved for the foreseeable future – Astleyhas been very busy on several other sig-nificant fronts. He and his wife, Judithand their two children have founded acharitable foundation. And, Astley hasjoined the board of a $100 billion dollarinvestment organization – which isinvesting money that relates directly tothe retirement plans of each and everyCanadian. In September, after a longvetting process that involved the Cana-dian minister of finance and everyprovincial government, Robert Astleyjoined the board of the Canada PensionPlan Investment Board.

BobAstley’sencore

He saved a

symphony; now

he takes on

national and

community

challenges

BY PAU L K NOWLES

exchangejanfeb07_pgs14-21:exchangesept06_pgs01-21 12/1/06 2:10 PM 4

MOVER & SHAKER

JANUARY/FEBRUARY 2007 l exchangemagazine.com l 15

Now that the symphony’s

financial crisis has been

solved for the foreseeable

future – Astley has been

very busy on several

other significant fronts.

exchangejanfeb07_pgs14-21:exchangesept06_pgs01-21 12/1/06 2:11 PM Page 15

MOVER & SHAKER

Financial expertiseAstley certainly brings the goods to

the CPPIB table. He is the former CEO ofClarica, the company that brought himto Kitchener-Waterloo, 33 years ago. Hewas born in Winnipeg, and earned anhonours degree in science from the Uni-versity of Manitoba.He joined the company in 1966, when

it was known as Mutual Life. Except fora three-year stint as a pension consult-ant, based in Toronto, he spent his entirecareer with Mutual and its successors. In

1989, he was appointed President andCOO. He became CEO in 1993.Astley was at the helm in 1999, when

Mutual was transformed into Clarica LifeInsurance Companies through a processof demutualization, initial public offeringand corporate name change. Clarica wasthe first of the four major mutual lifecompanies to become a public corpora-tion. That major change was followed,in 2001-2002, with the combining ofClarica and Sun Life Financial Servicesof Canada; Astley was President of Sun

Life from May 2002 until his retirementin September 2004.Today, at age 62, Astley serves as a

director of the Bank of Montreal. He has

previously been a member of the Boardsof CI Funds Inc., Perigee Inc. and Electro-home, as well as the Clarica and Sun LifeBoards. And he is clearly excited by theopportunity presented by the appoint-ment to the Canada Pension Plan Invest-ment Board.He sees this as an important responsi-

bility, in which he is in some senseaccountable to every Canadian. ThisBoard manages “the money all of ushave been contributing to over theyears,” he told Exchange.Astley jointed the CPPIB in September,

2006, after a lengthy approval process.He notes that while the members of theboard are appointed by the federal min-ister of finance, the board is independentin its actual decision-making and opera-tions; there is no “interference from gov-ernment.”Astley’s previous career was not

entirely without controversy. The formerSun Life CEO is currently involved in alawsuit and counter-suit involvingRobert Verdun, who was most recentlyin the news as an unsuccessful candi-date for the position of Regional Chair inthe Region of Waterloo. The lawsuitsarise from a dispute that reaches back tothe demutualization of Clarica, and sub-sequent situations at annual meetings ofcorporations including the Bank of Mon-treal. Astley comments very little aboutthe lawsuits, noting only that nothingnew has developed since he counter-sued in May of 2006, and agreeing thathis appointment to the CPPIB board wasthoroughly investigated and approved by


Get OfftheCouch!

GET OFF THE COUCH!

E X E R C I S E E Q U I P M E N T

“THE KW RECORD’S READERS’ SELECT AWARDS#1 FITNESS STORE!”

842 Victoria St. N., Kitchener579-8721 • 1-800-846-3333

Your 1st Choice for Home Fitness Since 1985

The Astley Family

Foundation supports

innovative projects,

primarily in Waterloo

Region, that encourage

personal development

of troubled youth.



Bob and Judy Astley (right, standing and seated) and their children have launched the Astley Family Foundation. The Astley family includes, (front, left toright) Derek Astley, his son Ryan and Derek’s wife, Yoo-Mi (centre); (back, left to right) Darrin Kinsey and his wife Jennifer Astley-Kinsey. The Foundation isfocused on helping disadvantaged young people; annual grants will reach $200,000 a year by 2008.



PROFESSIONAL JANITORIALSERVICES FOR BUSINESS

Specializing in Commercial,Industrial and Institutional facilities

Call us for all your cleaning needs:▼ General Janitorial & Office Cleaning▼ Carpet Cleaning▼ Floor Stripping & Waxing▼ Interior/Exterior Window Cleaning▼ Ultrasonic Blind Cleaning▼ Construction Cleanup▼ Factory Cleaning▼ Computer Cleaning

We will help protectyour Real Estate investment

Tel: (519) 884-9600Waterloo, Ontario

Fax: (519) 884-8699Toll Free: 1-800-983-6661

wwwwww..jjddiicclleeaanniinngg..ccoommBONDED & INSURED

Member of the Canadian Franchise Association and Better Business Bureau

the federal and all provincial govern-ments. The Board and the political lead-ers “made appropriate inquiries to satisfythemselves,” he says.

That process culminated in Astleyjoining the Board in September. Hedescribes his role: “One is really there toprovide overall governance to the organ-ization.” He says that includes ensuringthe strategic plan is properly implement-ed, monitoring the performance of man-agement, and “ensuring you have theright management in place.”

The result, he says, must be achieving“a superior rate of interest without undorisk of loss”... a maxim that is easily stat-ed but which presents an ongoing chal-lenge. Astley rather modestly suggeststhat he was invited to join the Board“because of my background in finance.”

He has become afirm believer in thesuccess of the CanadaPension Plan. “This issomething that is notwell understood by theCanadian public,” hesays. Fears are oftenexpressed that the tidalwave of baby boomersmay threaten thefuture of the CPP, butthis does not reflectreality, says the new director. “The CPP isvery soundly financed. It is really amodel for state pension plans aroundthe world. It’s a great success story.”

Astley points out that the CPPIB isdetermined that the contribution level –9.9% – be maintained. He also notes thatthe funds are invested globally; in fact,“we’re investing more and more outsidethe country just because the fund is solarge.” Large, indeed – it‘s $100 billion.CPP funds are invested in the US, inEurope, in Asia and to a lesser extent inother world markets.

The former Clarica CEO is clearlyexcited by his new national role. But heis equally thrilled about his family’s ven-ture into community development.

Volunteer rolesAstley’s contributions to his adopted

community have earned him manyaccolades, including an Honourary Doc-tor of Laws degree from Wilfrid LaurierUniversity, in 1996. Most recently, hisvoluntary role as chair of the K-W Sym-phony has placed him in the spotlight.But odds are, in coming years, it will bethe impact of the Astley Family Founda-tion that makes the difference in Water-

loo Region.The Foundation was formed in 2005,

and made its first grants in 2006. It istruly a family affair – the four directorsare Astley, his wife Judy, and their chil-dren, Derek, 34 and Jen, 32. The purposeof the foundation is articulated on theback of a business card which namesAstley as “Chairman of the Board”: “TheRobert and Judith Astley Family Founda-tion supports innovative projects, prima-rily in Waterloo Region, that encouragepersonal development of troubled youth,to aid in the prevention of abusivebehaviours.”

This is not Astley’s first involvementin community volunteerism. In additionto serving as Chair of the KW Symphony,he completed a six-year stint on theBoard of Governors of the Stratford Fes-

tival of Canada. He’salso been a memberof the Dean’s Adviso-ry Council for theSchool of Businessand Economics atWilfrid Laurier Uni-versity. He’s a formerChair of the Board ofGovernors for Lauri-er, and was Chair ofthe Dean’s AdvisoryCouncil.

But it may be that none of those roleshold the personal, emotional enjoymentof the new family foundation, whichinvolves all four members of the Astleyfamily.

“For Judy and me,” he says, “givingback to our community is very impor-tant.” They have lived in Kitchener andWaterloo for 33 years; “we’re very fortu-nate to enjoy the benefits of living in thiscommunity.”

Asked if the Astleys’ contribution is amodel for other business leaders to fol-low, he is modest: “Every individual willhave their own priorities... but there aremany others that share this kind ofvalue. We’re seen many others in thiscommunity sharing their time and finan-cial resources.”

The Astley Family Foundation isspecifically aimed to “support troubledyouth,” he says. That support will be sig-nificant – while smaller grants were dis-tributed in 2006, 2007 will see grants of$100,000, with $200,000 a year in grantsanticipated for each year from 2008 on.The four members of the family have thefinal say in granting decisions, but Astleynotes that “We’ll be getting lots of advicefrom different people in the community.”

Fine CarsFine Care

FINE AUTOMOBILEBODY & PAINT

[email protected]

15 & 125 Centennial Rd., Kitchener

Exclusive autobody & paintrefinishing for investment

and high quality automobiles

Specializing in

BMW

“For Judy and me,

giving back to our

community is very

important.”


Back in tuneNow that the KW Symphony has been

rescued from its financial swamp, therehas been a lot of talk about getting theorganization on a more solid, business-like footing. Astley agrees – with caution.He points out that the symphony is, firstof all, an arts organization, and insists,“Arts organizations live a precarious life.They are so dependent on three legs ofthe stool: ticket sales, governmentgrants, and fundraising.” He notes that asymphony orchestra is “quite an expen-sive operation,” and that ticket salesraise “less than half” the money needed.But he quickly adds that “the symphonyis not a spreadthrift,” and he points tothe larger contribution the symphonymakes to the community, both as a keycultural attraction, and as the profes-sional musicians teach young musiclovers. “The musicians themselves havea tremendous impact on the communityas individuals.”He looks back to his experience on

the board of the Stratford Festival. “Ihave a lot of admiration for RichardMonette,” he says. Monette will com-plete his tenure as the longest-serving

Artistic Director at Stratford at the end ofnext season. “And I’m a huge fan ofAntoni Cimolino,” who has served asExecutive Director, and will now headthe Festival when Monette leaves.Between these two men, the StratfordFestival “was really turned around finan-cially” in the past 10 to 12 years.Astley believes that, while the recent,

$2.5 million fundraising campaign hasput the KW Symphony on a solid finan-cial footing, the organization needs itsown “Richard Monette.” “We have highhopes for our next music director,” hesays. That person should be appointedwithin the first quarter of 2007. “In thelast 10 years,” he admits, “the KW Sym-phony has not had that kind of excitingleadership on a sustained basis.”The recent history of the symphony is

well known – the turnover in musicdirectors, as first Chosei Komatsu andthen Martin Fischer-Dieskau came andwent; dissension among board mem-bers; and loss of supporters were all fac-tors in what could have been a disaster.The problems led to a loss of revenue –ticket sales have dropped, and govern-ment grants shrank. In the end, the sym-

phony was in real danger of shuttingdown. “There was no doubt that bank-ruptcy was a real threat. We came per-ilously close to not having the money tomeet our obligations.”Now, “we have to sell tickets,” says

Astley. “That is our biggest challengegoing forward.” He therefore calls for thesymphony to think creatively. “We’re outto take the symphony to new places,”and that includes real, physical locales.When the people aren’t coming to thesymphony, the symphony will go to thepeople.And he recognizes that there may

need to be new approaches to ticketsales. The traditional method of seasonsubscriptions may be less effective in aworld where “people find it harder andharder to plan ahead.” Single ticket salesmay be more appealing than subscrip-tions, and he admits that “we may nothave caught on to that shift earlyenough.”Astley guarantees that the Fall, 2006

Save Our symphony appeal will not berepeated. (He and his family donatedmore than $100,000 to the cause). Buthe notes that “we do need to continually


MOVER & SHAKER


be fundraising, soliciting corpo-rations for sponsorship sup-port.”He sees this as entirely rea-

sonable: “Having a high qualitycultural life is important toattract people to the region...doctors, business people, hightech experts.”

“What has to be done”He admits that when he

joined the symphony board,and especially when he becameChair, he “wasn’t reallyexpecting to get into that kindof hot spot. But you do whathas to be done.”One of the things that was

done was to reduce the incomeof the symphony’s musicians –notoriously not the highest-paidartists, in the best of times. Ast-ley says that agreement wasnot well understood. In fact,under agreement with themusicians’ union, the 15%decrease in salary for this sea-son only will be repaid duringthe course of the current four-year collective agreement, if thesymphony maintains a solidfinancial footing.Cutting musicians’ salaries

was not an easy decision, hesays. “Nobody was happy aboutthat requirement.” But it was anelement in saving other belea-guered orchestras across thecountry, “and the Board

believed it was essential.”

Solid footing?While he embraces the artistic reali-

ties of a cultural organization like thesymphony, Astley’s business acumen isnever far below the surface. As the sym-phony moves ahead, “It is always neces-sary to live within our means,” he says,“to ensure that we raise the revenue tosupport the expenses of running ouroperation. We can’t run deficits on a reg-ular basis.”He adds, “If that’s what some people

think of regarding running the sympho-ny on a business basis – yes.” But hereminds people that the heart of thematter is still the music. “The symphonymust be a symphony.” And he knowsthat “the symphony’s issues will neverbe solved to the point where we can for-get about it.”But the immediate crisis is indeed

solved, thanks in large part to Astley’sleadership. Now, he says, there is “sometime to put the symphony on the rightpath, with a new artistic director.” Andwith continued leadership from theboard, which will be headed by Bob Ast-ley for at least one more year.Unlike many of his colleagues on the

board, he has never been a musician,not even as a young person. Maybe not– but Bob Astley managed to conductthe most important work the KW Sym-phony performed in 2006, while stillplaying a role in managing the nation’sretirement funds, and launching animportant new community resource.Quite a performance.


MOVER & SHAKER

95 Peel Street, New Hamburg(519) 662-3000

STORE HOURS: Tues. - Wed. 9am-6pm;Thurs. - Fri. 9am-9pm; Sat. 9am-5pm– after hours by appointment -

Clothes you’ll

love to wear.

What would you like

to see in your closet?

“Having a high quality cultured life is important to attractpeople to the region.”


Premium business hotel and conference center

700 Hespeler Road, Cambridge, ON • 519-622-1505 • 1-866-622-1505

Designed with Business in Mind• Experienced professional staff

• 138 Exceptionally appointed business rooms• Luxury & Hospitality Suites

• Fully equipped business center• 10 000 sq.ft of conference and meeting facility options• Complimentary wired and wireless high speedinternet connection in all rooms

• Exercise facility• 24 hour front desk service• Complimentary parking• Long Term Stay Programs

• Full service fine dining restaurant and licensed lounge• Golf simulator

Our FocusProviding top-notch service while maintaining

value for the corporate traveller

Our LocationConvenient to business districts, shopping, entertainment,

international airports and major highways

Our PromiseAt Future Inns, we are dedicated to providing quality, upscale

accommodation at a reasonable price.Our friendly and welcom-

ing staff will provide you with the quality service you deserve

when travelling, and we will ensure your guest room will be of

consistently high standard.

wherebusiness

stays.


he saved a bob astley’s - exchangemagazine.com · astley’s encore he saved a symphony; now he...

Documents