After earning his MBA in 1963, Johnson joined an independent brokerage firm in Toronto. That firm eventually became BMO Nesbitt Burns, where Johnson served as vice chair and, after retirement, continued as a senior advisor to their Investment Banking Division.
"Through my experience as a research analyst combined with institutional equity sales and trading," Johnson says, "I got to know equity capital markets. That became relevant to raising capital for companies and the investment banking side of the business. My focus was on providing service to corporations in Canada as well as foreign corporations that had an interest in Canada."
Johnson recalls his most challenging and rewarding transaction. "We were co-advisors with Goldman Sachs for British American Tobacco," he says. "Back in 2000, they acquired a Canadian conglomerate called Imasco. They already owned a minority stake and then acquired the rest of the company for $10 billion. BAT sold off the non-tobacco businesses for another $10 billion." The $20 billion deal took over three years to complete.
"The most challenging part," Johnson says, "is securing the support of both management and the board of the company you are advising, and then convincing the management and board of the counterparty that the deal is in their best interests."
Johnson has seen many changes in the industry, including a trend toward globalization, but says most key principles are the same. "Things have gotten a little more complex financially, but the principles of what makes a successful investment banker are still the same—dedication to hard work, integrity, teamwork, and keeping the best interests of client and company ahead of personal interests." He adds that patience, persistence, giving team members due credit, and keeping your ego in check are imperative traits for success.
Philanthropic efforts are a high priority for Johnson. The accomplishment he's most proud of helped open the door for more charitable giving. "In Canada, during the early 90s, when you gave stock to a charity, you got a tax receipt for the market value of the gift but you were deemed to have sold the shares, which triggered capital gains tax. Nobody gave stocks to charity and that was a major source of wealth for potential donations.
"I began a lobbying campaign with the federal government in 1995 to adopt the U.S. system of exempting charitable stock donations from capital gains tax." In 1997, Canada cut capital gains tax in half. Finally in 2006, Johnson's efforts paid off and the capital gains tax on charitable donations of stocks was eliminated.
Looking forward, Johnson plans to continue his role as a corporate advisor, a volunteer board member of five nonprofits, and chairman for the third largest rent-to-own business in North America.
"I like the balance that I have now. I interact frequently with managers, board members, executives, and CEOs of various corporations. I like that interaction and want to maintain these relationships."
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