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UBC Theses and Dissertations

The mobility of top business executives in Canada Daly, William George 1972

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THE MOBILITY OF TOP BUSINESS EXECUTIVES IN CANADA by WILLIAM GEORGE DALY B.Comm. U n i v e r s i t y of Manitoba, 1950 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE 'DEGREE OF Master of Business A d m i n i s t r a t i o n i n the F a c u l t y of Commerce and Business A d m i n i s t r a t i o n We accept t h i s t h e s i s as conforming to the r e q u i r e d standard THE UNIVERSITY OF BRITISH COLUMBIA August, 1972 In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the requirements fo an advanced degree at the U n i v e r s i t y of B r i t i s h Columbia, I agree that the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e for reference and s tudy. I f u r t h e r agree tha t pe rmiss ion for e x t e n s i v e copying o f t h i s t h e s i s f o r s c h o l a r l y purposes may be granted by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s . I t i s understood that copying or p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l ga in s h a l l not be a l lowed wi thout my w r i t t e n p e r m i s s i o n . Department o f {. ^ r The U n i v e r s i t y of B r i t i s h Columbia Vancouver 8. Canada D a t e ^^L^s. 3 d>/7-^L ABSTRACT The purpose of t h i s t h e s i s was to i n v e s t i g a t e the geographical and occupational o r i g i n s , the e d u c a t i o n a l backgrounds and the career patterns of the l e a d i n g executives i n Canadian c o r p o r a t i o n s . This i n f o r m a t i o n should be of i n t e r e s t to f i r m s concerned w i t h executive s e l e c t i o n and t r a i n i n g . Since both the q u a l i t y and q u a n t i t y of managers a f f e c t the performance of the Canadian economy, the government should encourage t h e i r development. Through well-known d i r e c t o r i e s , a l i s t of 332 large f i r m s and t h e i r top executives was compiled. A twenty-three item questionnaire was mailed t o the three most se n i o r o f f i c e r s i n each f i r m . The response r a t e of 49-6$ compared f a v o r a b l y w i t h other m o b i l i t y s t u d i e s . A f t e r the coding and processing of the r e t u r n s , computer p r i n t -outs were analyzed and compared w i t h census s t a t i s t i c s and other m o b i l i t y studies to i d e n t i f y the s i g n i f i c a n t items. This r e s e a r c h used the concept of p r o p o r t i o n a l r e p r e s e n t a t i o n to measure movement i n t o executives ranks. A r a t i o was c a l c u l a t e d between the percentage of the respondents w i t h a p a r t i c u l a r a t t r i b u t e , such as b i r t h p l a c e , education or f a t h e r ' s occupation, and the p r o p o r t i o n w i t h the same a t t r i b u t e i n the male work f o r c e . The backgrounds of Canada's l e a d i n g executives were not p r o p o r t i o n a l to the general p o p u l a t i o n . Urban centers, United States and the western provinces c o n t r i b u t e d more than t h e i r percentages i n the Canadian p o p u l a t i o n . Quebec was under-represented, even i n i t s own province. Probably the most s i g n i f i c a n t f a c t o r d i s t i n g u i s h i n g the respondents i i from the general p o p u l a t i o n was the e d u c a t i o n a l l e v e l a t t a i n e d by the exec u t i v e s . The p r o p o r t i o n w i t h -university degrees was eleven times the percentage of the male labour f o r c e i n Canada. At the other end of the sc a l e , i t had more than twelve times more men who had not completed hi g h school than the respondents. While the advantage of a u n i v e r s i t y degree seemed greater i n Canada, the emphasis on high education was common to a l l m o b i l i t y s t u d i e s . I t was more evident among the younger executives and the more recent s t u d i e s . This study a l s o i n d i c a t e d a growing emphasis on post graduate s t u d i e s i n business. Other s t u d i e s suggested two p o s s i b l e reasons f o r the under-representation of French Canadians a t executive ranks: lower educational achievement and l e s s emphasis on business and engineering courses i n French language u n i v e r s i t i e s . Francophones w i t h such t r a i n i n g are now being o f f e r e d higher s t a r t i n g s a l a r i e s and prospects of f a s t e r progress i n t o management. Comparisons of the occupational o r i g i n s of the executives w i t h those of the labour f o r c e suggested that m o b i l i t y i n t o executive ranks was l e s s open than i n United S t a t e s . Representation r a t i o s of 8.5 f o r the managerial group and 4-5 f o r p r o f e s s i o n a l men were higher than i n any recent m o b i l i t y study of American l e a d e r s . Because immigrants represent a l a r g e p r o p o r t i o n of the Canadian executives and t h e i r f o r e f a t h e r s , another a n a l y s i s was made which was indepen-dent of n a t i o n a l boundaries. By comparing the occupation of the executive s^ ' f a t h e r s . w i t h those of the grandfathers, the r a t i o s of occ u p a t i o n a l s t a b i l i t y were c a l c u l a t e d . This r a t i o f o r the major executives i n Canada was a l s o higher than f o r American business l e a d e r s . i i i Despite the tendency to r e c r u i t executives from f a m i l i e s a l r e a d y i n the managerial or p r o f e s s i o n a l ranks, the responses i n d i c a t e d l e s s i n f l u e n c e from r e l a t i v e s and f r i e n d s than i n comparable American s t u d i e s . Questions about changes i n m o b i l i t y i n t o executive rank and career development r e q u i r e a d d i t i o n a l r e s earch. Grants f o r business s t u d i e s i n Canada would develop managerial t a l e n t and preserve Canadian i d e n t i t y b e t t e r than grants to f o r e i g n corporations to develop resources or b u i l d i n d u s t r i a l p l a n t s . i v TABLE OF CONTENTS Chapter Page I INTRODUCTION . 1 The Problem and i t s Importance, 1 The External P r o f i l e , 3 Scope and Limitations, 4 Organization of Thesis, 6 II OTHER MOBILITY STUDIES ON EXECUTIVES . 8 Research i n the United States and other Countries, 8 Studies of Canadian Executives, 15 III METHODOLOGY 20 The Development of the Questionnaire, 20 Selection of Large Canadian Firms, 24 Selection of Executives, 26 Questionnaire Returns, 28 IV THE PROFILE OF THE CANADIAN EXECUTIVE 34 Nativity, 34 Education of the Canadian Executive, 45 Social Origins, 59 Business Career, 67 Marriage and Family, 76 Community Activities, 81 Summary of the External Profile, 88- • V COMPARISON WITH OTHER STUDIES . 93 Birthplace and Nationality, 93 Education, 102 Social Origins, 116 Career Progress, 129 VI CONCLUSIONS AND AREAS FOR FURTHER STUDY 138 LITERATURE CITED. ' 144 APPENDIXES 148 Analysis of mailings and Response by Industrial -Classification, 149 Questionnaire Comments, 150 Letters of Transmittal, 154 Questionnaire, 1 56 Letter of transmittal and highlights, 161 v LIST OF TABLES Table Page 1 . Distribution of Mailings and Returns by Industrial Group 30 2. Percentage of Returns by Amount of the Firm's Assets 31 3. Percentage of Returns by Number of the Firm's Staff 31 4. Returns by Position i n the Firm 32 5. Age Distribution of the Respondents 35 6. Birthplaces of Canadian Executives Compared with 1921 General Canadian Population 36 7- Canadian-Born Executive's Movements out of Regions of Birth into Present Region of Business . . . . 37 8. Birthplace of Canadian-born Executive and Present Residence 38 9- Size of Birthplace of the Canadian-born Executive Compared with 1921 Census 38 10. Birthplaces of Respondents Compared with those shown 1961 Canadian Census 39 11 . Canadian Ownership and Canadian-born Respondents . . . . 40 12. Birthplace of Executives by Age Group 40 13- Birthplace of Executive and Foreign Business Experience 42 14. Executive's Birthplace and Birthplace of Father . . . . 42 15- Birthplaces of Respondents and Their Paternal Grandfather 43 16. Birthplaces of Canadian-born Fathers and Their Fathers . 43 17. Managerial Representation i n Quebec by Ethnic Origin . . 45 18. Educational Level of the Canadian Executive Compared with the Canadian Male Labour Force, 1961 47 v i Table Page 19- Education of Executives by Age Group 48 20. Education Level by Rank of Executive 48 21 . Fields of University Study for Respondents Under and Over 50 49 22. Universities Attended by Respondents 51 23 . Education of Canadian-born Executives by Birthplace . . 52 24. Education and Nativity of Respondents 54 25. University Graduates by Industrial Group 55 26. Education Level by Amount of Canadian Ownership . . . . 56 27. Education Level by Amount of a Firm's Assets 57 28. Number of Employees in Firm and Educational Level . . . 58 29. Education of Parents Compared with Their Sons and the Canadian Labour Force i n 1921 59 30. Father's Occupation and Level of Education of Respondents 60 31 . Occupational Distribution of Fathers and Fathers' Fathers 62 32. Occupational Mobility Rates for Fathers and Paternal Grandfathers 63 33. Distribution of Fathers i n Each of Eight Occupational Groups According to Occupation of Paternal Grandfather . 65 34. Ratios of Movement of Fathers from Paternal Grandfathers'' Occupation 66 35. Occupational Sequences of Canadian Executives 68 36. Educational Levels and Occupational Sequences 70, 71 37. Age of Entering Present Organization 74 38. Number of Firms Associated With 75 39. Influential Connections i n Present Firm 76 40. Marital Status of Respondents 77 v i i Table Page 41 . Male Labour Force of 1 931 Census Compared with Occupations of Wives' Fathers and Respondents' Fathers 78 42. Education of Executive and His Wife 79 43. Number of Children 80 44. Careers of Executives' Sons 81 45- Importance of Participation i n Social Organizations . . 82 46. Executive Participation i n Community Activities . . . . 83 47- Community Activities Participated In 85 48. Chronology of Events and Corresponding Ages for Canadian Executives 89 49- Size of Birthplaces Compared 94 50. Composition of Boards of Directors 98 51 . Education Levels of Quebec and Canadian Executives Compared With 0'Donovan's Executives and Lower Managers 108 52. Education Levels of United States and Canadian Executives 111 53- Occupational and Educational Backgrounds of British Managers 117 54- Mobility Into Business Leadership Over Three Generations 119 55• Occupational Representation Ratios of Fathers Compared . 121 56. Occupations of Fathers of the 1928, 1952 and Canadian Business Leaders 124 57. Occupational Representation Over the Tears 125 58. Ratios of Occupational Stability and Movement Compared 126 59- Comparisons of Business Leaders' Career Sequences . . . 130, 131 v i i i Table Page 60. In t e r f i r m M o b i l i t y of Business Executives 135 61. Analysis of Mailings and Responses by I n d u s t r i a l C l a s s i f i c a t i o n 149 i x ACKNOWLEDGEMENT I owe my appreciation and gratitude to a score of friends and colleagues who helped with this thesis. Some gave me much needed incentive and encouragement, others contributed time and knowledge. I particularly want to express my appreciation to Clive Leigh, who helped with preparation of the questionnaire, Mrs. M.A. Arnold who helped address many envelopes and Mrs. A.P. Trenouth who coded many of the questionnaires. Of those who provided me with constructive guidance and valuable time and effort, I am most thankful to Dr. Larry P. Moore, chairman of my thesis committee and to Dr. V.F. Mitchell and Dr. H.L. Purdy. Thank you i s also due to Dean Philip H. White who signed covering letters'for the questionnaires and the thesis highlights. Without the backing of the faculty, the response from Canadian executives would not have been as great. The excellent response of the executives made this thesis possible. Knowing the numerous requests for information and the time required to answer them, I appreciate the fact that so many cooperated and took time to complete the questionnaire. Credit too, should be given to my wife for proof-reading drafts and the f i n a l copy of this thesis, for her forbearance during the many hours of thought and work which were spent on this research and her encouragement to see the job through. x CHAPTER I INTRODUCTION THE PROBLEM AND ITS IMPORTANCE This thesis i s concerned with Canadian business leadership, that powerful, important occupational elite concentrated at the highest levels of business. Men occupying the major decision-making positions i n major corporations have a large influence on the economic, social and p o l i t i c a l affairs of the nation. Although the corporations receive considerable attention and publicity, the executives themselves arouse l i t t l e popular interest. The corporations themselves and their executives are interested i n leadership. An important characteristic of the corporation i s i t s unlimited existence and hence i t must be concerned with the training and succession of i t s top employees. Owners and potential investors are also concerned with the quality of i t s leadership. The federal government i s concerned with economic well-being and growth. Attention to both quality and quantity of managers can be impor-tant to the effective performance of the Canadian economy. The staff of the Economic Council of Canada has done some work on the supply and demand of managerial talent indicating a shortage of good managers and 1 feels that additional research i s required. 1 D.J. Daly, "The Changing Environment for Management i n Canada" (mimeo, 1969), p. 35, 137- 1 2 T r a i n i n g of l a r g e r numbers of high q u a l i t y managers has important r a m i f i c a t i o n s f o r the u n i v e r s i t i e s . Academic i n s t i t u t i o n s have al r e a d y recognized t h i s need and enlarged resources have been a l l o c a t e d to the task. New p o s i t i o n s are being created i n management education at a r a t e 2 of about 1 00 per year i n Canadian u n i v e r s i t i e s . The growth i n s i z e of corporations and the d i s p e r s i o n of ownership have brought about i n c r e a s i n g i n t e r e s t i n the executive from s o c i a l s c i e n t i s t s . Most of the s t u d i e s have concerned themselves w i t h the nature of the executive f u n c t i o n , but s e v e r a l have d e a l t w i t h s o c i a l o r i g i n s and business careers of e x e c u t i v e s . However there has been l i t t l e a t t e n t i o n given to the business executive i n Canada and whether he d i f f e r s from others s t u d i e d . The f i r s t of s e v e r a l primary purposes of t h i s t h e s i s was to study the s o c i a l , e d u c a t i o n a l and business background of the major executive i n Canada. Data about h i s n a t i v i t y , h i s occupational o r i g i n s , education, marriage and business career was compiled from questionnaires to develop an e x t e r n a l p r o f i l e of the l e a d i n g executive i n Canada. A second purpose was to f i n d out how business executives reached t h e i r p o s i t i o n s , what routes they took and how long i t took to achieve t h e i r present p o s i t i o n . A major question a r i s i n g from these primary purposes i s : "Does the e x t e r n a l p r o f i l e provide a basis f o r d i s t i n g u i s h i n g the major execu-t i v e i n Canada from the general population and from the executives i n other c o u n t r i e s ? " Do s e n i o r i t y , s t a t u s and f a m i l y i n f l u e n c e p l a y an D.E. Armstrong, "The Manager of the Future" (Pulp and Paper  Magazine of Canada, May, 1967). 3 important role i n the selection of major executives? Does foreign owner-ship influence the selection of executives by nationality or business background? THE EXTERNAL PROFILE In collecting information about the background of executives, the research emphasizes the external profile of business leadership. It depicts i n outline form the executive's personal and business background. It tends to reflect the situational theory of leadership which holds that the social and institutional background of the executive influences his role as a leader. The main advantage of the external profile i s that i t i s more readily quantified than such concepts as motivation, personality and attitudes. It can also be compared with other mobility studies to ascertain whether current patterns i n Canada differ from previous studies on the business executive. Such studies clearly de-emphasize personality and inward strengths, directing attention to the external aspects of the executive. Personality studies and psychological profiles obtained through depth interviews, pencil and paper tests, and projectives were not used. Other researchers have used these procedures to develop an internal profile of the motivations, attitudes, and orientations of the executive. Such studies are usually limited i n geographical area and sample size. A third profile which should be mentioned for purposes of contrast i s the image profile that develops out of the popular concept of business leadership. Many stories have been written about the captains of industry 4 and the speculators and plungers who succeeded them at the turn of the century. Popular interest i n executives has lagged, and they have not sought publicity or attempted to refute the popular image. In Canada very l i t t l e study has been made of the total business experience and training of the individuals who reach the top executive positions and how this i s changing. This study attempts to shed some light on the questions raised on page 2 by presenting data gathered on the external profile of the Canadian executive and comparing i t with that developed on executives elsewhere. SCOPE AND LIMITATIONS This thesis has already been identified as an objective study of the social, educational and business backgrounds of Canadian executives. For purposes of definition, the word "Canadian" as used i n this study means resident i n Canada, not citizenship or ownership. Non-resident managers were excluded. Under this definition, J.R. Gordon, president of the International Nickel Company of Canada (the nation's most profitable firm), was excluded although he was born i n Ontario because he i s now resident i n New York. As in Porter's earlier Canadian study, the prime concern was with the "dominant" corporations who hold the leading positions i n Canada's economic activity. The concentration of economic power by such firms has been the subject of a number of academic studies. It i s to the executives of such firms that the background questionnaires 3 John Porter, "The Concentration of Economic Power and the Economic Elite i n Canada." (Canadian Journal of Economics and P o l i t i c a l  Science. Vol. XXIII, No. 2, May 1956). were mailed. The next question became, "Which executives?" Anticipating about a one-third response and hoping to get one response from each firm, i t was decided to mail the questionnaires to the top three exe-cutives i n each firm. Consequently the data collected i n the study describe a highly selected group of executives from Canada's largest corporations. The t i t l e of the thesis, "The Mobility of Top Business Executives i n Canada" suggests these two restrictions on the scope of the research by the use of the words "top" and "in Canada" to modify the words "business execu-tives". Nevertheless i t should help identify those elements of a person background which are most c r i t i c a l towards upward mobility i n business . In making comparisons with other studies i t must be recognized that this research was more limited i n scope than those with which the comparisons are made. The Canadian business picture i s dominated by fewer firms with a narrower range of products. The financial assis-tance available to undertake the project was limited. Another limitation of s t a t i s t i c a l studies i s that the individual i s lost among the crowd. A specific individual can be compared with a mean for the group because the s t a t i s t i c a l results deal i n averages. Because of the questions asked, no conclusions about personality or motivation could be drawn. No s t a t i s t i c a l study could answer questions about how a particular executive might be selected. Conclusions about a b i l i t y and methods of selection had to be made by inference. 6 ORGANIZATION OF THESIS Chapter I I discusses some other s t u d i e s i n the area of executive m o b i l i t y . No s p e c i f i c footnotes are made here, as d e t a i l e d and s p e c i f i c coverage i s done i n the next chapter. The pione e r i n g study done at Harvard U n i v e r s i t y i n 1928 i s mentioned. The c l a s s i c study done by Warner and Abegglen to which a l l subsequent research makes reference i s discussed. Newcomber d i d a three generation study of b i g business leaders i n 1900, 1925 and. 1950 that i s the b a s i s f o r her book. E a r l y research i n Canada was not aimed s p e c i f i c a l l y at executive m o b i l i t y but i t i s discussed as r e l e v a n t background to the Canadian s i t u a t i o n . Recent s t u d i e s are or i e n t e d towards the d i f f e r e n c e s i n o p p o r t u n i t i e s f o r French and E n g l i s h Canadians. Methodology i s the concern of Chapter I I I . I t covers the s e l e c -t i o n of l a r g e f i r m s and the e x e c u t i v e s . The development of the q u e s t i o n -n a i r e i s discussed w i t h a review of the i n d i v i d u a l q u e s t i o n s . This i s followed by an a n a l y s i s of the r e t u r n s and d i s c u s s i o n of t h e i r accuracy. The next chapter developed the p r o f i l e of the top business execu-t i v e i n Canada. F i r s t there i s a review of h i s n a t i v i t y by country, r e g i o n and s i z e of community i n r e l a t i o n to census s t a t i s t i c s . Then comes a r e p o r t on the e d u c a t i o n a l l e v e l achieved and the f i e l d of s p e c i a l t y . Next i s a review of h i s career progress, showing h i s achievement p a t t e r n and i n t e r f i r m m o b i l i t y and d i s c u s s i n g i t i n r e l a t i o n to h i s f a t h e r ' s occupation and the i n f l u e n c e of c o n t a c t s . Then comes a review of h i s immediate f a m i l y , h i s wife and c h i l d r e n . A f t e r a d i s c u s s i o n D f h i s a c t i -v i t i e s outside the board room comes a summary of h i s e x t e r n a l p r o f i l e . Chapter V makes s t a t i s t i c a l comparisons with the results of other studies i n such areas as educational achievement, career progress and inter-generational mobility. Chapter VI draws some conclusions on the findings of the research and suggests some areas for further studies. CHAPTER II OTHER MOBILITY STUDIES OH EXECUTIVES Preliminary research revealed some of the mobility studies on executives referred to i n this chapter. Others were found after the questionnaire had been returned and tabulated. Had some of these been located sooner, the questionnaire would have been modified to make some additional useful comparisons. Nevertheless, the later research increased the depth of the study and made the comparisons more meaningful. RESEARCH IN THE UNITED STATES AND OTHER COUNTRIES An early study on the origins of business leaders was done by Professors Taussig and Joslyn of Harvard University i n 1928. In their pioneering work, they looked at both intergenerational mobility of parent and offspring, and career mobility—the social position of the same individual at different times. Their work provided the basis for the conception and methodology of later research. Many of the subsequent questionnaires are based on theirs so as to make comparisons in mobility and to identify trends. Data for their study was obtained from question-naires completed by seven thousand recognized businessmen i n the United States. Warner and Abegglen used the earlier study as the foundation for 1 P.W. Taussig and C.S. Joslyn, American Business Leaders. (New York: MacMillan, 1928). 8 9 2 their research at the University of Chicago. In 1952 executives were chosen from the largest firms i n the country. Industries were represented according to their contribution to national income. A preliminary mailing was used to test the response to the survey and followed up with personal interviews to check the r e l i a b i l i t y of the data. More than 17,000 question-naires were mailed direct to the executives' offices with a response rate of 48.8$. Their results indicated that mobility had increased slowly between 3 the two studies. However they also noted that men born to the top were more l i k e l y to succeed and to have more advantages than those lower down. Warner and Abegglen followed up their questionnaire with personal 4 interviews that provided the background for a more popular book. In i t they described education as the "royal road to success". However i t is the former book that provided the research results and i s turned to as the authority i n subsequent mobility studies, particularly of business leaders. About the same time Newcomber was using a different approach to exploring the factors relative to executive success. She directed her 5 research towards the president and chairman of the board for leading 2 W.L. Warner and James C. Abegglen, Occupational Mobility i n  American Business and Industry (Minneapolis: University of Minnesota Press, 1955). 3Ibid., p. 35-4 W.L. Warner and James C. Abegglen, Big Business Leaders i n America (Hew York: Harper, 1955). 5 Mabel Newcomber, The Big Business Executive, the Factors that  Made Him 1900-1950 (New York! Columbia University Press, 1955). corporations i n the years 1900, 1925 and 1950. Using b i o g r a p h i c a l data, she developed i n f o r m a t i o n on the o r i g i n , education and business careers of the c h i e f e x e c u t i v e s . While her sample was s m a l l e r , she was able to i d e n t i f y trends i n the s e l e c t i o n of top business leaders over three generations. She n o t i c e d a trend away from i n h e r i t o r s and organizers towards people w i t h long experience w i t h the f i r m and w i t h a u n i v e r s i t y education. Her study i n c l u d e d the s t r u c t u r e of the board of d i r e c t o r s , executive compensation and the f a c t o r s which lead to termination of o f f i c e , something not o f t e n examined. About the same time as the previous researchers were doing t h e i r work, Fortune Magazine p r i n t e d an a r t i c l e on a group of top executives They analyzed the backgrounds of the three highest paid men i n the 250 l a r g e s t i n d u s t r i a l c o r p o r a t i o n s , the 25 l a r g e s t r a i l r o a d s and the 25 l a r g e s t u t i l i t i e s . Although the a r t i c l e was short and lacked compara-t i v e data, i t i s r e f e r r e d to f r e q u e n t l y and i s the b a s i s f o r a chapter 7 i n a book, compiled by t h e i r e d i t o r s . I t i n c l u d e d graphs on b i r t h -p l a c e , compensation, age and experience. Tables were shown on the f i r s t job w i t h the f i r m , education and f a t h e r ' s occupation. Fortune e d i t o r s must have observed considerable i n t e r e s t i n t h e i r a r t i c l e and subsequent s t u d i e s , because they sponsored another Q study on young ex e c u t i v e s . Questionnaires were d i s t r i b u t e d to s u c c e s s f u l 6"The Nine Hundred," Fortune. V o l . XLVT, No. 5 (November 1 9 5 2 ) , p. 132. E d i t o r s of Fortune, The Executive L i f e (Garden C i t y , New York: Doubleday, 1 9 5 6 ) . Walter Guzzardi, The Young Executives (New York: New American L i b r a r y , 1 9 6 5 ) -11 administrators on the way up through the employing concern. Popular i n style, i t also asked about reading habits, car 'owners, holidays and po l i t i c s . The objective may have been market research rather than serious academic study. Mills wrote a well-documented sociological study on the organi-q zation of American society. It depicted the men and women at the pinnacles of fame, power and fortune i n the United States. It included a chapter on the chief executives that discussed their background and training with frequent references to other research. 0'Donovan used the Warner and Abegglan approach to compare the 1 0 backgrounds of executives and lower managers. While the scope of his investigation was limited to the examination of 326 questionnaires from only four corporations, he found a clear difference i n the occupational origins. Only one i n five executives came from lower occupations as compared with almost half the lower managers. More than twice as many executives as lower managers came from a high occupational level. Sixty-nine per cent (69$) of the executives weie college graduates as compared with twenty-five per cent (25$) of the lower managers. The educational levels for a l l other members of the executive's family—father, mother, wife and brother—were higher than for the respective members of the lower manager's family. Warner was the senior author of a study on government employ-ee . Wright Mills, The Power Elite (New York: Oxford University Press, 1956) . 10 T. 0'Donovan, "Differential Extent of Opportunity Among Execu-tives and Lower Managers," Academy of Management Journal, August, 1962. ees. It was a comprehensive analysis of the background, education and experience of c i v i l service and military leaders complete with a compari-son with those i n American business. Information from more than 13,000 questionnaires indicated that i t was now less easy for top-level fathers to guarantee top positions for their sons as many leaders came from less favored origins. However, the emphasis on education was even greater among the federal executives than for the business executives of 1 952. Subsequent studies often refer to this work as an authoritative source of information about the government bureaucrat. In 1964 Scientific American sponsored a follow-up to the New-1 2 comber study by Gould, The author noted that only 10.5$ of the top executives studied came from wealthy families compared with almost half i n 1900. He emphasized that the percentage of those with science or engineering degrees increased five-fold between 1900 and 1964 while those 13 with higher education had doubled. However he neglected to separate business administration training from social science and humanities. Not a l l mobility studies are confined to the United States. However information on those conducted on business executives i n other countries are not commonly available i n Canadian li b r a r i e s . Malferrari directed the Warner approach towards American execu-11 Lloyd W. Warner, Paul P. Van Riper, Norman H. Martin and Orvis P. Collins, The American Federal Executive (New Haven: Yale University Press, 1 9 6 3 ) . 1 2 Jay M. Gould, The Big Business Executive 1964: a Study of His  Social and Educational Background (New York: Scientific American Inc., 1965}, "Technicians Moving i n at the Top," Business Week, (June 12, 1965) P-^Jay M. Gould, The Technical E l i t e (New York: Augustus M. Kelley, 1 9 6 6 ) . 13 14 fives serving overseas. His questionnaires were distributed through fifty-two (52) co-operating firms. While he did not have Warner's control over the population to be studied, his results may have some relevance to the postings of Americans to top positions i n Canadian subsidiaries. He noticed that the overseas executive was younger and better educated than those of the earlier Warner study. In both sample selection and results his findings are comparable to the Guzzardi study mentioned earlier. A 1 5 booklet appears to have been based on the same data. The most recent study reviewed utilized the Warner approach 1 6 towards the academic f i e l d . 760 questionnaires completed by univer-sity presidents indicated that a disproportionate number came from the business-executive, business-owner and professional f i e l d s . Clergymen and teachers were particularly well represented among the fathers of the academic e l i t e . A l l of the academic presidents were university graduates, nearly three-fourths with university doctoral degrees. The researcher concluded that while some university presidents were more advantaged than others, the educational and social systems did permit vertical mobility for a relatively large percentage. 1 7 Clements studied managers i n Britain. Using data collected Carlose Jose Malferrari, "The American Executive Overseas: an external profile," (Unpublished Ph.D. thesis, Michigan State University, 1 9 6 5 ) . 1 5 Richard F. Gonzalez and Anant R. Negandhi, The United States  Overseas Executive: His Orientations and Career Patterns (East Lansing, Michigan State University, 1 9 6 7 ) . : 16 Michael R. Ferrari, "Origins and Careers of American Business, Government and Academic Elites," California Management Review, Vol. XII, Wo . 4 (Summer 1970) . 17 R.V.. Clements, Managers, a Study of Their Careers i n Industry (London: Allen and Unwin Ltd., 1 9 5 7 ) • • from 646 interviews i n twenty-eight (28) firms, he developed tables on social origins, education and careers. Sixty-eight per cent of his execu-tives were university graduates compared with only, four per cent of his lower level managers. Seventy-eight per cent of the higher managers came from high social origins compared with only thirty-three per cent of the lower level. Sixty-seven per cent of the lower level managers came from manual and routine occupational origins. There have been enough studies about mobility that i t has been possible to,.generalize on the f i n d i n g s . (1) Mobility studies uniformly show deviation from random distribution, that i s , f i l i a l status i s s t a t i s t i c a l l y and posi-tively dependent on parental status . . . some of most classes of fathers are distributed throughout most of the status classes. The status of the father allows considerable variation i n the status of the son. (2) • Sons are more highly over-represented i n the diagonal cells representing continuity by the son of the parental status. ( 3 ) Discussion i s now centered over two questions: (a) Has,' the rate of mobility changed? (b) Do other societies show a lower rate of mobility than the United States? 1 8 The f i r s t and second generalizations were••consistent with the findings on the mobility of business executives referred to above. A comparison of the Tausig and Joslyn results with those of Warner and Abegglan and the Hewcomber research indicated,;a slight increase in mobi-l i t y to executive rank in the United States. Although the controls Herbert G-oldhamer, "Social Mobility." International Encyclopedia  of the Social Sciences (MacMillan Co. & the Free Press, 1968, Vol. XIV), p. 428-438. 15 over the executives sampled by Guzzardi and M a l f e r r a r i , were not as r i g o r o u s , the backgrounds of t h e i r younger executives would i n d i c a t e a f u r t h e r i n c r e a s e i n m o b i l i t y . Unfortunately, not enough st u d i e s on business executives i n other s o c i e t i e s were l o c a t e d to warrant comment on the l a s t q u e s t i o n . This' t h e s i s w i l l compare the m o b i l i t y of Canadian born executives w i t h previous research on those born i n the United S t a t e s . STUDIES OP CANADIAN EXECUTIVES Porter conducted an a n a l y s i s on the backgrounds of Canadian 1 9 business l e a d e r s . S t a r t i n g w i t h a DBS l i s t of establishments employing over 500 i n 1948, he e l i m i n a t e d s u b s i d i a r y f i r m s and minor companies to develop a l i s t of 183' "dominant c o r p o r a t i o n s " . To t h i s group he added the chartered banks and the ten l a r g e s t insurance companies i n Canada. Then he used the F i n a n c i a l Post D i r e c t o r y of D i r e c t o r s as a source of names of board members. The ensuing l i s t of 985 d i r e c t o r s was designated the economic e l i t e of Canada. Using reference books he obtained s u f f i c -i e n t b i o g r a p h i c a l data on 7 7 . 1 $ of h i s economic e l i t e before drawing some con c l u s i o n s . Family background and education were q u i t e s i g n i f i c a n t f a c t o r s i n the s e l e c t i o n of top businessmen. He n o t i c e d a h i g h degree of i n t e r n a l recruitment and the v i r t u a l disappearance of the independent entrepreneur. His o r i g i n a l study of d i r e c t o r s tended to overlook the i n f l u e n c e of f u l l - t i m e company o f f i c i a l s i n determining company p o l i c y . I n h i s l a t e r book he recognized the concentration of c o n t r o l i n the 1 9 John P o r t e r , "The Economic E l i t e and the S o c i a l S t r u c t u r e of Canada," (Canadian Journal of Economics and P o l i t i c a l Science, XXII, Ho. 3, (Aug. 1 9 5 7 ) , p. 199-220. hands of management Park and Park directed their analysis of intercorporate relations towards financial ownership and interlocking directorships in Canadian 21 big business. They l i s t about 260 names of men prominent i n business in Canada and their firms. . Rather than seek to understand the develop-ment of the individual executive, they sought to c r i t i c i z e his power and control by suggesting illegitimate corporate behavior. The Royal Commission on Canada's Economic Prospects recommended that foreign-owned companies use Canadian personnel and f a c i l i t i e s wherever 22 possible. The commissioners urged the companies to include independent Canadians on their boards, issue stock to Canadians and publish the finan-c i a l results of their Canadian operations. They suggested that companies doing this be given a lower rate of witholding tax on dividends paid abroad. Walter Gordon tried to bring i n legislation to do this i n his abortive budget i n 1 963. In 1960 the Canadian-American Committee reported "oil interviews with senior o f f i c i a l s on the behavior of United States Subsidiaries i n 23 Canada. One aspect examined was the Canadianization of personnel. It concluded that Canadians already have an employment advantage over non-Canadians at the professional and technical levels. With respect 20 ' John Porter, The Vertical Mosaic (Toronto: University of Toronto Press, 1965), p. 252, 21 Libbie C. Park and F.W. Park, Anatomy of Big Business. (Toronto: Progress Books, 1962). 22 Canada: Royal Commission on Canada's Economic Prospects, Final  Report. (Ottawa: Queen's Printer, 1958), p. 393. 23 John Lindeman and D. Armstrong, Policies and Practices of U.S. Subsidiaries i n Canada (Montreal: Private Planning Association of Canada, 1960). to executive positions, there was a discernable preference for Canadians to f i l l the jobs available i n Canada. Some company o f f i c i a l s f e l t this policy might restrict opportunities for better jobs with the parent or other organization subsidiary. Even more important than the nationality of the executive or director would be the amount of authority which went with the position. :.N Safarian^ directed some questions about leadership, boards of directors and authority to firms participating i n his study of Canadian i n d u s t r i a l ownership. He found that most of the 280 foreign-owned subsid-iaries had policies favoring the use of Canadians in key positions. Forty-two per cent (42$) of the directors were associated with the parent or a f f i l i a t e s outside Canada, with the proportion diminishing for larger firms. However the boards of directors met less than once a month so could have l i t t l e influence on day to day operations. His concern was with the extent of foreign influence on decision making rather than with the background or experience of the executives. In 1968 results of a s t a t i s t i c a l survey on the Canadian executive 25 were published. The sample was drawn from a magazine's circulation l i s t and responded at a rate of 41$. Responses to questions concerning education, family and activities may be compared with this survey, but like the Guzzardi study i n United States, many of the questions had to do with spending habits. Ho interpretation of the s t a t i s t i c a l information 24 / A.E. Safarian, Foreign Ownership of Canadian Industry (Scar-borough: McGraw-Hill, 1966). 25 "Portrait of the Canadian Executive," Executive, the Magazine. for Canada's Decision Makers. Southam Business Publication, Vol. X, Ho. 3 (March 1968), p. 48; Ho. 4 (April 1968), p. 53; No. 5 (May 1968) p. 53-was attempted. The motive appeared to be primarily market research. The Royal Commission on Bilingualism and Biculturalism was primarily concerned with the opportunities of French Canadians as compared with 26 English Canadians. The relationship between ethnic origin and occupation and religion was shown using 1961 census figures. Some of the supple-mentary research delved into the area of management opportunities between 27 the two groups at greater depth particularly as they related to education 28 and cultural differences. The Warner approach has been used to explore occupational mobility 29 i n Quebec. As many of the same questions .were used, i t can be compared directly with the results of this research. Based on 386 returns- from 1200 questionnaires, a response of 32.1$, the author observed that both English and French executives have higher education than the general population. He concluded that chances of reaching the upper echelon of business enterprises were as good for'French Canadians as for English. In fact he suggested that the French Canadian occupational structure 26 Report of the Royal Commission on Bilingualism and Biculturalism, Book III, The Work World (Ottawa: Queen"s Printer, 1969). 27 ' • -D.E. Armstrong, "Education and Achievement: Corporate Policies with Respect to Bilingualism and Biculturalism"(Montreal: McGill Univer-sity, Unpublished manuscript deposited i n National Library, Ottawa, 1966). v. 1955 2 8 G.A. Auclair and W.H. Read, "A Cross-cultural Study of Industrial Leadership," (Montreal: Unpublished manuscript deposited i n National Library, Ottawa, 1966). 29 Laurent Belanger, "Occupational Mobility of French and English Canadian Business Leaders i n the Province of Quebec," (Unpublished Ph.D. dissertation, Michigan State University, 1967). appeared more open than the English Canadian since c l e r i c a l workers and foremen supply more than their share of business executives among French Canadians. He concluded that occupational origin was more important than ethnicity i n opening the road to the summit of business enterprises. CHAPTER I I I METHODOLOGY The p r e l i m i n a r y research i n d i c a t e d the o v e r a l l p a t t e r n f o r t h i s study of the m o b i l i t y of top business executives i n Canada. This chapter describes the m o d i f i c a t i o n s made i n the questionnaire to s u i t the Canadian business s i t u a t i o n and the d i f f e r e n c e s which were thought worth i n v e s t i -g a t i n g i n t h i s country, p a r t i c u l a r l y the e f f e c t s of f o r e i g n ownership. Then the method of s e l e c t i n g the f i r m s and the executives to which the questionnaires were d i r e c t e d i s reviewed. This chapter concludes w i t h a d i s c u s s i o n and summary of the responses to the qu e s t i o n n a i r e . THE DEVELOPMENT OF THE QUESTIONNAIRE The questionnaire employed i n t h i s research ( i n c l u d e d i n the appendix i n i t s o r i g i n a l mimeo form, p.1 .56f) c o n s i s t e d of four pages of items which were constructed to meet s e v e r a l c r i t e r i a : F i r s t , i t was necessary to d u p l i c a t e items i n c l u d e d i n previous s t u d i e s to provide 1 accurate data f o r comparison. Second, i t was necessary that the items be phrased c l e a r l y enough th a t each response would be comparable to a l l other r e p l i e s to that item. Further, i t was d e s i r a b l e to maximum response that minimum demands be made on the respondent, p r e f e r a b l y that he be W.L. Warner and James C. Abegglen, Occupational M o b i l i t y i n  American Business and Industry (Minneapolis: U n i v e r s i t y of Minnesota Press, 1 9 5 5 ) , p. 2 4 2 - 2 4 5 . Carlos Jose M a l f e r r a i , "The American Execu-t i v e Overseas: an e x t e r n a l p r o f i l e , " (unpublished Ph.D. t h e s i s , Michigan State U n i v e r s i t y , 1 9 6 5 ) , p. 128-131 . 20 21 able to respond by a simple check mark on possible answers previously arranged. This would also make the coding of the responses easier for computer analysis and summary. Finally the overriding importance of a high rate of return to the questionnaire required brief items to keep the total questionnaire as short as possible. Previous questionnaires were reviewed to pick out the most appropriate phrasing for a questionnaire so that data obtained from Canadian executives would be comparable to that of other research. Those items f o r which s i g n i f i c a n t modifications were made are discussed below. The o f f i c i a l t i t l e of the present business position was phrased as an open-ended question in item 4 to allow a wide range of response and to indicate clearly the level of the respondent i n his organization. 2 Item 5 was taken from a published questionnaire which contained many items similar to the Warner studies. It was intended to indicate with which branch of the organization the business executive was assoc-iated. Because the population studied was at the top of the organization structure, many of the respondents indicated more than one branch. Consequently i t was not coded for analysis purposes. The number of occupations and levels available under items 7 and 17 was reduced from previous studies to shorten the questionnaire and to allow the coding of the responses i n a single IBM card column. When the responses were being coded, enough explanations of the "other" category indicated that military service and university studies were significant so that these two were coded as separate categories. Another 2 D. Moment and A. Zaleznick, Role Development and Interpersonal  Competence (Boston: Harvard University, 1 963)• 22 problem i n the responses concerned the professional person who worked his way up the business hierarchy and indicated two answers. In this case his position i n the hierarchy was given precedence over his status as a profes-sional person. The time points selected i n item 7 were arbitrary, but consistent with those of previous studies so that comparisons of the rate of upward mobility could be made. Two indications of the father's occupation i n item 17 were designed to provide data on mobility within the father's career. Another study published i n 1963 but not seen before the question-naire was prepared dropped the second indication of the father's occupation in favor of a response on the mother's father. It also expanded the number of responses available, particularly i n the professional area. Items 1 0 and 11 were used by Malferrai i n his study of the American 4 Executive Overseas. They were designed to uncover foreign experience that might be a factor i n non-resident owned firms and to find out whether the firm was a recent entry into the Canadian business scene. The value of total assets i n Canada was used to assess the size of a business rather than the volume of sales as used i n the American studies. The hope was to tie i n with the c r i t e r i a on business size and non-resident 5 ownership used in CALURA. While this criterion i s subject to question, i t appears that no single standard of business size i s totally satisfactory: 3 W.L. Warner, Paul P. Van Riper, H. Norman Martin and O.E. Collins, The American Federal Executive (New Haven: Yale University Press, 1963)'. 4 Malferrai, loc. c i t . 5 : . . . . . . . . Annual Report, Corporations and Labour Union .Returns Act, 1962 (Ottawa: Queen's Printer, -1965) • • 23 taxable income, reported net income before or after extra-ordinary items and owner equity might also be used. Because Porter had used the number of employees as a criterion for selecting his firms, this factor was also requested i n item 12 for a further indicator of a firm's size i n Canada. Item 13 was designed to find out the amount of non-resident owner-ship. The categories selected were those used for CALURA.^ Item 14 dealt with the presence or absence of influential connec-tions i n the f i r s t employing firm and i n the firm with which the respondent was now associated. Used i n the 1952 questionnaire, i t served as an index to over-all influence and connections i n furthering the career on the Canadian executive. Item 18 was concerned with the education of the business leader, his father, mother and wife. The categories used to indicate the formal education were comparable to census data and to other studies. Those who were college graduates were also asked to identify their college and their major f i e l d of study. Had the large number of responses indicating training in business administration and management been anticipated, this area of inquiry would have been extended as i t was for the American Federal 7 Executive. The extent of the community activities of the Canadian business leader was explored by item 19. The influence of such activities could be estimated from their responses. Many of the executives participated in more than one activity and the responses to this question had to be coded i n order to get an idea of their relative importance. G '; 1 Ibid., p. 19- Warner et a l , op. c i t . , p. 283. The birthplace of the executives was the subject of item 20. The categories were established after a review of the census data. Item 21 sought information about the executive's family with the idea of looking at the birth rate as a factor i n occupational mobility. Item 22 was intended to give an indication of the career choice of the sons. Item 23 was used to determine whether the executive had completed similar questionnaires i n the past so that comparisons could be made with the results. SELECTION OP LARGE CANADIAN FIRMS An early step i n this research was to identify those executives i n Canada which would be most typical of those participating i n the 1 8 research done i n the United States by Taussig and Joslyn i n 1928-29 9 10 and by Warner and Abegglan i n 1 952 and i n Canada by Porter. Some criterion was needed to identify the firms whose execu-tives would be sent questionnaires. In order to have an adequate response, i t was decided, to mail about 1 ,000 questionnaires hoping for a return of about 25$. I n i t i a l l y i t was decided to use those firms which had a minimum of $25,000,000 in assets. The Dominion Bureau of Statistics reported 11 382 firms i n this size group i n 1962. They held a total of 8 F.W. Taussig and C.S. Joslyn, American Business Leaders. (New York: . MacMillan, 12928). 9 Warner and Abegglen, op. c i t . 1 0 John Porter, The Vertical Mosaic. (Toronto: University of Toronto Press, 1965). 11 CALUM, op. c i t . , p. 31 • $27,000,000,000 i n assets or 51 .8$ of the total for a l l corporations reporting. These figures proved d i f f i c u l t to rely upon for three reasons: (1 ) private corporations were not yet required to publish financial statements on their operations i n Canada, ( 2 ) individual respondents are treated confidentially by DBS and the Income Tax Division, ( 3 ) Sub-sidiary firms may be treated as separate entities for DBS reports and tax purposes but consolidated for published annual reports to the public, e.g. Bell Canada. The i n i t i a l l i s t of such firms came from a checklist of Canada1s largest companies published i n the Financial Post, January 15» 1966. Sales, assets and net income were recorded on cards for the 100 largest industrial firms with the most assets shown on published annual reports. Although that l i s t came down to almost $50,000 i n assets, there were 12 fewer firms than reported by CALDEA i n that size group. " To that l i s t were added eight retailing firms, ten banks, ten finance companies and the eleven largest insurance companies. The count of 139 was s t i l l well below the number of 182 reported by the federal government. Well-known private companies like Eatons, General Motors, Contin-ental Can Company of Canada and Mobil O i l Canada were added to the f i l e . The next source of firm names was the Financial Post Corporation  Service. It contained condensed statements and market performance for a l l firms quoted on Canadian stock exchanges. Each card i n i t s f i l e was reviewed to add a l l firms showing assets i n excess of $25,000,000. The 12CALURA, loc. c i t . total number of firms was s t i l l significantly below the CALURA figure of 382. Porter had published a l i s t of 183 dominant corporations i n the 13 Canadian economy. That l i s t was also reviewed to add additional firms to the f i l e . For his original l i s t the companys' names came from a DBS l i s t i n g of manufacturers with over 500 employees. Such a procedure would include employers with large staff, but not necessarily high invest-ment,. His l i s t included somellabor intensive firms, especially i n the garment industry, which did not meet the asset criterion above. To try to pick up the names of additional significant private companies, the Canadian Trade Index was reviewed to include manufacturing firms with over 1,000 employees. The card f i l e now contained 332 names of the largest firms i n Canada. It was decided that this would be adequate representation of large corporations i n Canada. SELECTION OF EXECUTIVES The Financial Pcsfc Directory of Directors, 1967 was used to help identify the three top men for each firm selected above. For Canadian-owned firms, an obvious choice would be chairman of the board, president and executive vice-president. However t i t l e s for the top executives were by no means consistent from firm to firm. Sometimes the posts of president and chairman were combined. Sometimes there were only vice-presidents with no executive vice-president identified. For each firm ^Porter, op. c i t . , p. 581-595-an attempt was made to select the three top executives from the t i t l e s given. In the case of foreign controlled firms, the executives chosen had to be resident i n Canada. For Pan American Petroleum Corporation the three top executives resident i n Canada were a vice-president and the functional managers for the exploration and producing divisions. For Swift Canadian Company Limited no vice-presidents were shown so the three executives chosen were "president and general manager", "general sales manager" and "plant manager". In the earlier stages of the research project i t was thought that biographic data might be used to check the accuracy of the returns and to f i l l i n gaps i n the responses. In chapter II, i t was mentioned that both Newcomber and Porter had used such information as sources for their research. One of Canada's growth industries was selected for a t r i a l run. Using the top executives l i s t e d i n Hickle's Oil Register, 1966 for firms like Texaco Canada, Imperial O i l , British American (now Gulf), and Shell O i l , an attempt was made to develop biographical data on such men from Who's Who in Canada. However, this approach was abandoned when the coverage on the individuals concerned was either incomplete or non-existent. Large studies of executive mobility conducted i n the United States used mailed questionnaires as their prime source of data. In books ^ 14 published i n 1955 and 1963, i t was found through follow-up interviews that there was no significant difference i n the backgrounds of those ^ Earner and Abegglen, op. c i t . , p. 237; Warner et a l . , op. c i t . , p. 264. who returned the completed questionnaire from those who did not. For this study several steps were taken to encourage a high rate of return to the mailing: (1 ) Philip H. White, dean of the Faculty of Commerce and Business Administration, signed a covering letter endorsing the study and s o l i c i t i n g a response. (2) A return card was enclosed for those interested i n a report of the findings on executive opportunity i n Canada. (3) The return envelope was addressed to the Faculty of Commerce and Business Administration, University of British Columhia, so that the respondents would know that this was a university approved project handled i n s t r i c t confidence. Because of the additional cost and handling involved, no offer was made to pay return postage. A preliminary mailing to executives i n Alberta and British Columbia indicated a response higher than originally anticipated. Consequently i t was decided to proceed with the balance of the mailing before summer holidays would slow up the returns. Thoughts of follow-up interviews to check the phrasing of the items, the accuracy of the responses and the nature of those replying were discarded i n favor of getting the question-naires out and back as quickly as possible. QUESTIONNAIRE RETURNS The questionnaire, return card and covering letters were mailed to a total of 978 executives. Each questionnaire had been precoded with an identifying number for the firm. Each return was reviewed by the author and coded for punching on IBM cards. Comments from the respondents enabled him to make adjustments i n some returns. Some comments concerned .the handling of the survey and have been included i n the appendix. A total of 487 questionnaires were returned. Two of these response were rejected because of incomplete returns to page 2 dealing with the size of firm, contacts and relatives' occupations. Eighteen mailings were acknow ledged but not returned for a variety of reasons: deceased, retirement or contrary to personal policy. A few were professional people who did not feel they should be included i n a study of business leaders. The total number of usable returns was 485• This i s a response • of 49-6$ for the total mailed. This return from a mailed questionnaire was higher than expected, comparing favorably with the 47-6$ response to 1 5 the study of American business leaders. It was gratifying considering the enormous volume of questionnaires and requests for information that cross the desks of key businessmen. Certainly the business executive's interest i n opportunity and success helped account for the response. The return card offering a summary of the results also played a part as 288 cards were received back or 59.4$ of those responding requested a report on the results. The mailings and the returns are summarized by industrial grouping i n Table 1 . The highest rate of response came from the insurance com-panies and the lowest from the chartered banks. Further detail on the industrial classification, the questionnaires mailed and the response i s • shown in the appendix Warner and Abegglen, op. c i t . , p. -224. 30 Table 1 . Distribution of Mailings and Returns by Industrial Group Industrial group Mailed Usable Response Rate Mining and. o i l exploration 132 62 46.9$ Food, beverage' and clothing 181 97 53.6 Wood, paper and primary metal 110 48 43-6 Secondary manufacturing 290 149 51 .7 Transportation and communication 11 2 54 48.2 Merchandising 51 23 45.0 Banking, finance and insurance 102 52 51 .6 Totals 978 485 49.6$ An early step i n the research had selected the large firms i n Canada to whose executives the questionnaire would be addressed. Table 2 indicates the percentage of replies that came from each asset group in the questionnaire. Notice that over 89$ of the responses came from firms.with over $25,000,000 i n assets. .' The size of a firm can also be classified by the size of i t s staff. Table 3 shows the percentage of responses by the number of employees i n the firm. Ninety percent of the executives were from firms with more than five hundred employees and seventy-five percent from firms with more than one thousand employees. It would appear that the two c r i t e r i a of size of staff and the amount of assets have restricted the responses to the executives of Canada's largest firms. 31 Table 2. Percentage of Returns by Amount of the Firm's Assets Amount of firm's assets Percentage of Returns Under $25,000,000 10.7$ $ 25,000,000 - 49,999,999 23.8 $ 50,000,000 - 9 9 , 9 9 9 , 9 9 9 24.3 $100,000,000-499,999,999 29.8 Over' $500,000,000 • 11 .4 Total 100.0$ Table 3• Percentage of Returns by the Number of a Firm's Staff Percentage Number of employees of Returns Under 500 10.0 • 500 - 999 U.4 1 ,000 - 2,999 43.5 3,000 - 4,999 11 .6 5,000 - 9,999 11 .4 Over 10,000 9.1 Total 100.0$ Another way of analyzing the returns would be by the position i n the hierarchy of a firm. As can be observed from Table 4 the questionnaires have been completed by the top level executives i n Canadian firms. There were a few instances of questionnaires being passed on to other executives like the personnel manager for review and completion, but these cases were the exception, rather than the rule. Table 4. Returns by Position i n Firm Position Number Per Cent Chairman and/or president 225 46.4 Vice-president 197 40.6 Other officers: treasurer, secretary, salesmanager, personnel manager, etc. 63 13.0 Totals 485 100.0$ In the case of one of Canada's largest firms, the personnel manager had the questionnaire reproduced and circulated to other executives i n the firm for completion. A l l twenty-one duplicated questionnaires received were excluded from the tabulations i n order not to bias the results for this 'departure from the sampling procedure. Following coding of the questionnaires and the production of computer runs summarizing the results, the Faculty of Commerce and Busi-ness Administration mailed a copy of the highlights of the findings to those executives who completed a return card. A copy of the highlights and covering letter from Dean P.H. White have been included i n the appendix. As mentioned earlier, the number of returns exceeded expectations. The high response was heartening, considering the time required of busy-men to answer the many personal and confidential questions. Although that meant more work reviewing and coding the questionnaires, i t also increased the val i d i t y of any conclusions that might be made from the data received. Since 59$ of the respondents asked to receive an abstract of the research findings and since many identified themselves despite given assurances of confidential treatment of a l l information, there was a high degree of commitment and interest on the part of the respondents. Therefore the author feels the responses received were accurate, having been answered in good faith by many of Canada's leading business executives. CHAPTER IV THE PROFILE OP THE CANADIAN EXECUTIVE After the questionnaires were tabulated came the job of analyzing the arrays of computer print-out to identify those items which were signi-ficant to display and discuss as relevant to the subject of the mobility of the leading business executives in Canada. The results of this analysis are shown i n the tables and i n the discussions on nativity, education, family background, career progress and community activities in this chapter. Some comparisons are made with census figures and Canadian material to help develop some generalizations about the background of the top executive i n Canada. These are then summarized to conclude the chapter with an external profile of the top business executive in Canada. NATIVITY This section reviews the information about the birth and age of the executives responding to the survey. The average age of the respon-dents was 52.6 years with a standard.deviation of 8.36 years. The range i n ages was from 30 to 80 years or 50 years. However Table V shows that almost half f e l l into the age group between 45 and 55 years old. A l l parts of Canada, and foreign nations as well, supplied executives for big corporations in Canada. Over 71$ of the respondents were born in Canada. While a l l sections of the country were represented i n the group, almost a third were born in Ontario. The next largest group came from the prairie provinces of Manitoba, Saskatchewan and 34 Alberta (17>5$). Quebec, the Atlantic provinces and British Columbia supplied smaller proportions of the Canadian business e l i t e . In order for these figures to t e l l an accurate story, we should know how they compare with the general population of these areas at the Table 5. Age Distribution of the Respondents Age Percentage 24 - 34 35 - 44 45 - 54 55 - 64 over 65 6.6$ 26.0 48.8 16.5 2.1 Total 100, time of the executive's birth. The continuing migrations of the past years have changed the population to the extent that the 1921 census has been used to provide comparative figures i n Table 6. A ratio of relative representation has-been developed to relate the birthplace of the executives to the 1921 census to identify those areas which may be under or over represented. Comparing the province of the executive's birth with the general population i n 1921 indicates that the western provinces are heavily represented, but Quebec and the Atlantic provinces have not produced their proportion of executives. Table 6. Birthplaces of Canadian Executives Compared with 1921 General Canadian Population 1921 Population Ratio of relative representation 11 .3 25.8 28.6 10.1 1 .9 77.7 12.2 4.3 5.8 •47 •45 1 .16 1 .73 1 .89 • 92 .72 3.79 .65 100 % 1 .00 Place of Birth Executive Atlantic provinces Quebec Ontario P r a i r i e provinces British Columbia Total Canada British Isles United States Other 5 - 4 11 .6 33-1 1 7 . 5 3-6 71 .2 8.8 16.3 3-7 Totals 100 Mobility of Canadian born executives out of their region of birth has been high. As indicated by Table 7, the number from the Prairie and Atlantic provinces who hold executive positions i n the region i n which they were born was less than one third. Over three quarters of the executives born in Ontario were at head offices i n that province. In Quebec, 53$ of Canadian-born executives had moved i n from other provinces. 37 Table 7- Canadian-born Executive's Movement out of Region of Birth into Present Region of Business Head Office of Firm Total Birthplace Atlantic Quebec Ontario Prairie B.C. lumber $ Atlantic 7 9 8 - 1 25 7.6$ Quebec 3 35 13 1 1 .53 16.2 Ontario 2. 26 120 4 . 2 154 . 46.9 Prairie - 12 38 23 6 79 24.1 British Columbia - 3 2 3 9 17 5.2 Totals 12 85 181 31 19 328 100 $ As 55$ of the firms had their head offices i n Ontario and an addit-ional 26$ in Quebec, the relationship between the birthplace of the Canadian born executive and his present residence was examined i n Table 8. The percen-tage born i n Quebec was particularly low when compared with almost 26$ of returns from that province. Cities of over 2 5 , 0 0 0 i n population produced a larger share of the executives born i n Canada than did towns or rural villages. As indicated by Table 9 , the larger centers produced 64$ of the executives although the cities over 2 5 , 0 0 0 represented only 2 5 $ of the Canadian population i n 1921 . As the ratios of relative representation indicate, there was a marked size gradient. The large communities were the primary source of business leaders, with the smaller communities of relatively lesser importance. At the extremes, the larger c i t i e s were represented over two times more frequently 38 Table 8. Birthplace of Canadian-born. Executive and Present Residence Head Office Province Region of Firm of Birth Atlantic Provinces 3.7$ 7.6$ Quebec 25.9 16.2 Ontario 55.2 46.9 Prairie Provinces 9.4 24.1 British Columbia 5.8 5.2 Totals 100 $ 100 '$ in business leadership than their proportion to the Canadian population at the time of the respondent's birth would suggest, while the rural areas were represented less than half as frequently as would be expected. Table 9« Size of Birthplace of Canadian-born Executive Compared with 1921 Census Size of Birthplace Ratio of Cdn.-born Relative Executive . 1921 Census Representation Over 100,000 25,000 - 100,000 3,000 - 25,000 Rural and under 3>000 40.7$ 18.9$ 14.7 6.6 18.6 14.2 26.0 60.3 2.16 2.23 1 .30 .43 Totals 100 $ 100 $ 1 .00 39 American born executives were over-represented.in relation to the general population, as indicated by Table 6. United States supplied 16.3$ of the respondents although only 4-3$ of the Canadian population i n 1921 were born there. According to the 1961 census 1 .6$ of the Canadian popu-lation reported being born i n the United States. Compared with the survey responses totalling 16.3$ i n Table 10 the over-representation of the U.S. born was almost ten times. Table 10 also showed a higher representation from the British Isles and lower from Canada and other than the 1921 comparison. Table 10. Birthplaces of Respondents Compared with those shown 1961 Canadian Census Place of Birth Executive $ 1961 Population $ Ratio of Relative Representation Canada 71 .2 84.4 .85 British Isles 8.8 5.6 1 -57 United States 16.3 1 .6 9.73 Other 3-8 8.4 .48 Totals 100 100 1 .00 Because a large number of firms are owned in the United States, the amount of Canadian ownership was compared with the degree of Canadian born respondents. Table 11 indicated that there was a higher proportion of Canadian-born respondents i n firms with a majority of Canadian ownership. Foreign owned firms, especially those with minority Canadian ownership, Table 11. Canadian Ownership and Canadian-born Respondents 40 Canadian ownership A l l Respondents Born i n No. Canada $ Representation Ratio Under 5$ 124 84 67.6^  i .87 5 - 49$ 103 61 59.3 .77 50 - 94$ 107 83 77.6 1 .00 95$ and over 138 108 78.2 1 .02 Totals 472 336 71 .3 .92 1 921 general population - base year 77.7 1 .00 1 961 general population 84-4 were more li k e l y to have executives born outside Canada. When a comparison was made of country of birth and age groups i n Table 12, the proportion of executives born i n the United States became larger with.age. None of the respondents born i n the United States was Table 12. Birthplace of Executives by Age Group Age Group Number Birthplace Under 44 45-54 55-64 Over 65 Responding Canada 69-55 & 75.4$ 68.8$ 55-0$ 340 British Isles 13-1 4.6 11 .8 - 42 United States 10.9 .17.1 16.2 40.0 78 Other . 6.5 2.9 3.2 5.0 18 Totals 100 : % ' 100 $ 100 $ 100 $ Number responding . 92 • 175 187 20 474 under 35 years old although 6.6$ of a l l respondents were. In a l l other age groups the proportion of United States born was higher than the 1 .6$ reported for the general population i n 1 961 . It would appear that big business i n Canada has imported technical knowledge and organizational experience from the United States, particu-larly i f control was owned outside Canada. Many of the American-born leaders were i n industries which have experienced great expansion in Canada during the past 2 0 years: o i l , chemicals and cement. Almost a third of the U.S. born respondents ( 2 5 out of 80) were employed by firms that have been i n operation in Canada less than 2 0 years. Generally they were more highly educated than the average respondent, particularly in the fields of business administration and engineering. Consequently i t appears that many American-born executives were brought into industries where Canada "had neither time nor f a c i l i t i e s to develop i t s own experts. Table 1 3 provides further evidence that executives born i n the United States were more lik e l y to have experience working i n other countries than those born elsewhere. Only 5$ of the Canadian born had f/oriei^gn experience compared with 82$ of the U.S. born. Of the Canadian-born executives, 70$ were second generation Canadians at least. Of the 336 responding to both items, 2 3 7 had their fathers born i n Canada also, as indicated i n Table 14- There was a correlation of .65 between the birthplace of the executive and that of his father. Going further back into the ancestry of the Canadian executive, 160 or 2 9 $ of"the total, respondents were third generation Canadians, as indicated i n Table 15. The correlation of the grandfather's birth-42 Table 13. Birthplace of Executive and.Foreign Business Experience Birthplace Number of Executives Number with Foreign Experience Per Cent Canada British Isles United States Other Countries Totals 340 42 78 18 478 67 14 64 11 156 34 82 61 30$ place to that of the executive was .54, s t i l l relatively high. When the analysis was restricted to fathers of Canadian born executives and their birthplaces compared with that of the father's father i n Table 16 Table 14. Executive's Birthplace and Birthplace of Father Executive's Birthplace Birthplace of Executive's Father Canada U.K. U.S.A. Other Total Canada United Kingdom United States of America Other Countries 237 0 10 76 41 3 2 9 0 57 0 14 1 7 1'5 336 42 .77. 18 Totals 248 122 66 37 473 43 Table 1 5• Birthplaces of Respondents and Their Paternal Grandfather Birthplace of Paternal Grandfather Executive's Birthplace Canada U.K. U.S.A. Other Total Canada 160 1 50 4 21 '335 United Kingdom 0 40 0 1 41 United. States of America 5 8 50 13 76 Other . 1 3 o 14 18 Totals. 166 201 54 49 470 47$ of the paternal grandfathers were also bom in Canada . Most of the balance were born in United Kingdom, although two fathers had their fathers imigrate from the United States. Table 1 6. Birthplaces of Canadian-born Fathers and Their Fathers Their Father's Birthplace Father's Birthplace Canada U.K. U.S.A. Other Total Canada 47 .2$ 22.1$ - 1 -5$ 70 .8$ United Kingdom 21 .8 - .6 22.4 U.S.A. .. .6 .6 1 .2$ • 3 2 . 7 . Other • 3 - 3-9 4 .2 Totals 47 .8$ 44-8$ 1 .2$ 6 .3$ 100 $ Number responding. 1 60 1 50 4 21 • 335 44 Ethnic origin rather than birthplace i s the primary basis cfor reporting Canadian census s t a t i s t i c s . In the.'author1 s opinion this procedure tends to emphasize raci a l origins such as French or British rather than create a Canadian identity. The stress on these two founding peoples i s apt to ignore that thirty per cent of .the male work force i n 1961 had some other 1 ethnic background. Discussion of Table 10 has already indicated that the United States born were found i n top executive positions i n almost ten times their proportion to the total population. Under the Canadian census classification, a manager whose forefathers had lived i n the United States for generations might be reported as British or Jewish rather than American. Those were the ethnic origins whose representation i n the managerial occupation exceeded 2 their participation in the male work force i n 1961. It was mentioned earlier that the Quebec-born were under-represented at the top level of business, even i n their own province. Table 17 suggested that the odds for obtaining management positions were weighted against the French-Canadians as there were only two-thirds as many Quebecers as one would expect i f the selection were made on a random basis from the total 3 population. Belanger sent out 1 ,200 questionnaires to examine the differences i n occupational mobility between French and English i n the business elit e 1 Report of the Royal Commission on Bilingualism and Biculturalism, Book III, The Work World (Ottawa, Queen's Printer, 1969), p. 38. 2 I b i d . D.E. Armstrong, "Education and Achievement, Corporate Policies with Respect to Bilingualism and Biculturalism" (Montreal: McGill Univer-sity, 1966, Unpublished paper on deposit at National Library, Ottawa.), p. 106. of Quebec. Included were questions on the importance of ethnic origin and religion i n the career progress of the respondents. Ethnic origin was not important according to 6 5 $ of the English managers and 56% of the French. Larger proportions, 7 0 $ of the English business leaders and Table 1 7 . Managerial Representation i n Quebec by Ethnic Origin (Those Earning $ 1 0 , 0 0 0 per year and over) Labour Mana^  jers Professionals Origin Force $ Ratio $ Ratio French 7 5 - 4 $ 4 4 . 3 $ . 5 9 4 8 . 7 $ . 6 5 British Isles 1 2 . 8 3 3 - 0 2 . 5 8 3 2 . 1 2 . 5 1 Other 11 . 8 2 2 . 7 1 . 9 2 1 9 . 2 1 . 6 3 . 63$ of the French, replied that religion.was not important. What then made the difference? The answer appears to be education, particularly i n management and business. EDUCATION OF THE CANADIAN EXECUTIVE . . . . Formal education has become increasingly important i n l i f e . Instead of starting i n a business and working their way up, more and more men use a college education to further their careers. Technical and business school training i s taken more often today than i n the last generation by men ambitious to succeed. Probably the most significant factor distinguishing the respon-^"Laurent Belanger, "Occupational Mobility of French and English-Canadians Business Leaders i n the Province of Quebec," (Unpublished Ph.D. thesis, Michigan State University, 1967), p. 138. 46 dents from the general population of Canada was the educational level attained hy the executives. Over 65$ had graduated from university, many with second degrees. This i s much higher than the 8 . 4 $ reported for the managerial 5 occupation i n staff studies done hy the Economic Council of Canada. However that study concerned i t s e l f with over 440,000 males classified as managerial i n the 1961 census whereas this study deals with an elit e group of top executives. Comparing the education level of the respondents with the Canadian male.labour force i n Table 18, those who completed their university training were over eleven times as l i k e l y to be top executives. Whereas 79 out of every 100 of the executive respondents'had gone to university, only 16 out of 100 males i n the general population, had any university training. Comparisons at lower education levels were perhaps even more forceful. Less than 1$ of the executives had not ertered high school compared with almost 44$ of the Canadian male labour force. Another 5 percent of the executives had not completed high school as compared with 30$ of the labour force. There were about 12 times more men of meager education i n the general population than i n the e l i t e . • Emphasis on educational achievement was even more evident among younger executives. While some increase might be expected because the average educational level of the Canadian population i s improving, the standards achieved exceed what would be expected. Notice from Table 19 that the level of education of the respondents increased with their youth. 5 Gordon Bertram, The Contribution of Education to Economic  Growth (Ottawa: Staff Study No. 12, Economic Council of Canada, 1966), p. 8. 47 Table 18. Educational Level of the Canadian Executive Compared with the Canadian Male Labour Force, 1961 Canadian Male Labour Force Canadian Ages 25-64 Representation Educational Level Executive 1961 Rates Less than high school .8$ 45.9% .02 Some high school 5.4 29-7 " .18 High school graduate 14.5 8.7 1 .6 " Some college 14.2 10.1 1 .4 College graduate Post graduate 42.6 ) ) 22.5 ) 5.6 11 .6 Totals 100 $ 100 $ 1 .0 The percentage with complete university increased from 30$ for those over 65 to 79-3$ for those under 44 years of age. In fact, for the under 44 age group, there were more executives with two degrees than with none. Another indication of the growing emphasis on education was the higher_level achieved by. the vice-presidents of the firm as compared with the president and other executives shown i n Table 20. 70$ of the vice-presidents had completed university as compared with 63$ of the chairmen and presidents and only 56$ of the other executives responding. This analysis of education and position suggested that the top executive would l i k e l y be replaced by someone with more education. T6 try to assess a trend i n education, the replies were divided into groups'below and above 50 years of age. 76$ of the younger group 48 Table 1 9. Education of Executives by Age Group Percentage of Executives i n Age Group Educational Level Under 44 45-54 55-64 Over 65 Less than high school .6 .6 5.0 Some high school 1 .0 5-1 6.4 20.0 High.school, graduate 5.3 17-7 16.1 20.0... . Some college 14.4 13.2 14.5 25.0 College graduate 39.1 43.4 45.2 20.0 Post graduate study 40.2 20.0 17-2 10.0 Totals 100 $ 100 < £ 100 $ 100 $ University graduate 79.3$ 63.45 t 62.5$ 50. ,$ Table 20. Education Level by Rank of Executive Chairman Vice-Education Level or President president Other Incomplete high school. 8.5$ 3-6$ 11 .1$ High school graduate 12.4 16.2 15.9 Some college 16.4 10.1 17.5 University graduate 43.1 44.2 33-3 Post graduate 19.6 25.9 22.2 Totals 100 $ 100 $ 100 .$ 49 and 61 $ of those under 5 0 had university degrees. Comparing the f i e l d of study for those under and over 5 0 i n Table 21 showed a growing emphasis on education i n commerce and business administration, especially at the graduate level. Twice as large a proportion of respondents took post graduate studies i n business as did undergraduate studies i n that area. Further research should be done on business education of the type that does not lead to a university degree, e.g. that done by university extension departments, 'Advanced Schools of Management and professional Table 21 . Fields of University Study for Respondents Under and Over 5 0 Undergraduate Graduate Field of Study Under Over Under Over Arts, languages, humanities 12.8$ 13.0$ 5.6$ 3.5$ Geology, biology, zoology 6.0 4.7 5.7 10.5 Social sciences 5.1 3.6 3.8 7.0 Mathematics, physics, chemistry 5.1 • 8.3 3.8 7.0 Engineering 39.3 42.0 13.2 14.0 Commerce and business administration 22.3- 11:9*6 49-8 19.3 Chartered accountancy 5.1 4.2' 14.8 12.3 Law 4.3 4.6 3-8 21 .1 Others not included above - - -Totals 100 $ 100 $ 100 $ 100 $ Number responding 117 193 53 57 50 societies. Twenty-six Chartered Accountants indicated their qualifications and have been shown separately i n the tables. Some respondents indicated a second degree, such as law or graduate studies. The latter interpretation has been included with studies at the Master's or Doctor's level. The emphasis on post graduate education i s particularly noticeable among the younger executives. Only 23$ of the executives over 50 had post graduate studies but 34% of the younger executives with university graduation went on to post graduate studies, almost half i n commerce and business administration. At what universities did these Canadian executives earn their degrees? Almost 20$ did not give the name of the university from which they graduated and also 30$ did not name their post graduate university. Those which were identified were shown on Table 22. Canadian institutions were shown i n 74.1$ of the cases, just s l i g h t l y under the representation of Canadian-born i n the respondents. The University of Toronto was named most frequently, i n 21 .2$ of the cases. Of the Canadian-born, 95$ took their undergraduate studies i n Canada, but 18$ went outside for their post graduate degree. This might be an indication of either limited funds or limited f a c i l i t i e s for graduate work i n Canada. Harvard got a strong preference from the respondents for i t s graduate school of business while Western Ontarioviwas the prominent Canadian university i n that f i e l d . Respondents from the United States did not show the same tendency to come from Ivy League colleges such as Harvard, Yale and Princeton that was evident i n Warner's sample^ W^.L. Warner and J.C. Abegglen, Big Business Leaders i n America (New York: Harper & Bros., 1955), pp. 50-55-51 Table 2 2 . Universities Attended by Respondents A l l Executives Canadian Born University Attended Undergrad Graduate Undergrad Graduate Atlantic universities 12 4 12 4 Quebec French 2 2 2 2 McGill,.. Sir .Geo . Williams 55 11 '• 35 10 University of Toronto 57 10 54 10 Ontario private 3 . 30 6 28 6 Ontario religious 2 0 2 ' o Prairie universities 28 5 2 5 5 University of British Columbia 6 1 5 1 Chartered Accountancy 14 1 2 12 '• 12 ' Big' Ten (u.S.A.) b 8 ->4 • 1 3 Other State Colleges 27 3 5 2 Ivy League0 10 15 1 6 Other U.S. Colleges 7 4 2 0 European Universities 13 . 5 0 • 0 Totals 251 82 184 61 McMaster, Queens, Western Ontario and Carletion. Michigan State, Michigan, Indiana, Purdue, I l l i n o i s , Iowa, Wisconsin, Minnesota, Ohio State and Northwestern. Brown, Columbia, Cornell, Dartsmouth, Harvard, Pennsylvania, Princeton and Yale. 5 2 7 or Newcomber's research. Table 2 3 indicated, that executives born on the prairies had the highest education level while those born i n B.C.hhad the lowest. This did not agree with census statistics for educational levels achieved i n each region. Rather than reflect census figures, the difference suggested that highly educated people migrated to the provinces of Ontario' and Quebec where most of the head offices are located. As pointed out earlier i n the section on Nativity, Quebec was under-represented i n executive ranks according to i t s population. Table 7 gave statistics on the migration of executives out of their region of birth. Examining the birthplace, of Canadian-born respondents vis-a-vis the locus of their university training, we found that 64$ of .the Atlantic born stayed there for their education. Two-thirds of the Quebec born Table 23. Education of Canadian-born Executives by Birthplace Region of Birth Educational Level Atlantic Quebec Ontario Prairie B.C. High school or less 0 $ 5.7$ 7.8$ 5 . 1 $ 5-9$ High school graduation 12.0 9-4 19.0 11 .4 17.7 Some college 24.0 17.0 10.5 7.6 23.5 University graduate 48.0 39-6 44-4 48.1 35-3 Post graduate 16.0 28.3 18.3 27.8 17.6 Totals 1 0 0 i 1 0 0 $ 1 0 0 $ 1 0 0 $ 1 0 0 $ U grad or better 64.0$ 67.9$ 62.7$ 75.9$ 52.9$ 7 Mabel Hewcomber, The Big Business Executive, the Factors that Made Him 1900-1950 (New York: Columbia University Press, 1 9 5 5 ) > p. 79 53 went to the English University of McGill. Of the Ontario born 46$ went to the University of Toronto and 3 1 $ to Western, Queens or McMaster. Of the prairie born, 46$ went to regional universities, but 2 1 $ went to the University of Toronto. British Columbia educated 38$ of their poten-t i a l executives, but 25$ went east to McGill. Over half of the Chartered Accountants who started their training after high school were born on the prairies. In Ontario nine respondents took another degree before proceeding to their professional training. In the section on nativity, i t was observed that the United States born were over-represented i n relation to their proportion to the general population and that this was also increased with the'foreign control. Table 24 comparing the education and nativity of Canadian executives showed that 75 . 2 $ of the executives from the U.S.A. and 7 2 . 1 $ of the executives born i n other countries (usually continental Europe) were university graduates compared with 65.8$ of the Canadian born and-' only 38 . 1 $ of those born in the United Kingdom. This relationship was consistent with that found in Porter's earlier Canadian study. He observed university training i n 7 1 $ of the U.S. born, 62.5$ of the Canadian born and 44$ of those born i n U.K. As indicated by Table 24, the country of birth had some influence on the percentages of executives who had graduated from university: United States, 75 . 2 $ ; other countries, usually contin-ental Europe, 72 . 1 $ , Canada, 65.9$ and of those born i n the British Isles, 38 . 1 $ , well below the average of 65 . 1 $ . A l l areas showed larger percentages with post-graduate studies than the Canadian-born. John Porter, The Vertical Mosaic (Toronto: University of Toronto Press, 1965), p. 283-284-Table 24. Education and Nativity of Respondents Country of Birth Educational Level Canada U.K. U.S.A. Other Total Incomplete high school . 5.8$ 11 .9$ 5.0$ 5.6$ 6.2$ High school graduate 14.9 21 .4 11 .1 5.6 14.5 Some college 13.4 28.6 8.7 16.7 14.2 University graduate 44.8 16.7 47-6 38.8 42.6 Post graduate 21 .0 21 .4 27.5 33.3 22.5 Totals 100 $ 100 $ 100 $ 100 $ 100 $ Number Responding; 344 42 80 18 484 It may be concluded that firms i n Canada have imported university trained talent to manage their business. The only significant difference i n fields of training for Canadian and U.S.A.-born respondents was that a larger proportion of the United States-born had taken post graduate study i n business administration. This was the educational f i e l d i n which Canada was farthest behind the 9 United States, according to Dr. D.E. Armstrong. His study indicated that i n relation to population Canada has about 30$ i n undergraduate business programs and 14$ in the graduate level compared with U.S.A. The proportion of university graduates i n executive positions varied considerably by industry. The chemical, o i l and mining industries 9 D.E. Armstrong, "The Threat of New Revolutions i n Management and Education" (Montreal: McG-ill University, Mimeo, 1968), p. 9-55 had the highest proportion of university graduates. In these industries were relatively young firms with a high percentage of executives horn i n the United States. Banking, trust and loan, textile and food firms had the lowest proportion of university graduates. Table 25 portrayed the percentage of university graduates by industrial group together with the number of percentage points different from the average. Table 25. University Graduates by Industrial Group Industrial Group Percentage Difference From Average Mining and o i l exploration 81 .2$ +16.1 Food, beverage and clothing 54.8 -10.3 Wood, paper and primary metal 67.3 + 2.2 Secondary manufacturing 65.1 0 Transportation and communication 68.2 + 3.1 Merchandising 65.2 '+ .1 Banking, finance and' insurance 55.0 -10.1 A l l respondents 65-1$ The statistics from Table 26 suggest that foreign-owned firms placed a higher value on education than did the Canadian-owned firms. The percen-tage of the university graduates among the respondents from wholly owned Canadian firms was 58$ or 7 per cent below the average. In corporations with a majority of Canadian ownership the percentage of graduates was 65$ or average. In those firms which were from 5 to 49$ Canadian-owned 56 Table 26. Educational Level by Amount of Canadian Ownership Educational Level Over 95$ Canadian Ownership 50-95$ 5-49$' Under 5$ Less than complete high school 6$ 4$ 4$ 6$ High school graduation 14 21 11 11 Some university 22 10 . 8 15 University graduate ' 43 37 54' 45 Post graduate • 15 28 23 23 Totals 100$ .1:00$ 100$ 100$ Percentage university 58 65 ' 77 68 . Difference from average -7 0 +12 +3 the percentage of executives with university graduation was 77$ or 12$ above the average of a l l responding. With firms where Canadian ownership was negligible, the graduates were 68$ or 3 per cent above the average. When the size of firm by i t s assets was compared with the amount of education held by the responding executives i n Table 27, the middle • sized firm had a slightly higher proportion of university graduates. Respondents with university graduation or better were 61$, 57$, 67$, 73$ and 65$ as the firms' assets increased. One explanation for the low. percentage of university graduates i n firms with over half a b i l l i o n i n assets could be the influence of banks and financial concerns that had lower levels of executive education. It should be noted that the largest proportion of executives with post graduate studies was found i n the 57 Table 27. Educational Level by Amount of Firm's Assets Size of Firm's Assets i n Millions of Dollars Educational Level Under 25 25-50 50-100 100-500 Over 500 Less than high school X t 7$ 7$ 3 $ 5 $ High school graduate 15 14 13 15 17 Some college 17 22 13 9 13 University graduate 39 40 43 50 36 Post graduate 22 17 24 23 29 Total 100; i 100$ 100$ 100$ 100$ firms with the most assets. There was not any clear relationship between the amount of education and the number of employees i n the firm. Table 28 indicates that firms with between 3,000 and 5,000 employees had only 46$ of executives with university graduation or better. Firms with fewer than 500 employees had 78$ of their executives with university graduation while firms with over 10,000 employees had 81$ of their executives with university graduation together with the highest proportion of post graduate study of any size or category of firm. Consequently i t would appear that the largest firms in terms of number of employees or amount of assets put the highest premium on post-graduate education for their leading executives. The educational attainment of the family i s an important factor in determining the educational achievement of the children. Most Canadians advance beyond the educational level of their parents. Did this apply to 58 Table 28. Number of Employees in Firm and Educational Level Educational Level of Respondents Number of Incomplete High School Some University Post Employees High School Graduate College Graduate Graduate Under 5 0 0 4 $ 1 0 $ 8$ 52$ 26$ 500 - 1 ,000 5 16 1 6 38 2 5 1 ,000 - 3,000 6 . 1 7 15 . 43 1 9 3,000 - 5,000 12 9 33 30 16 5,000 - 10,000 3 16 ' 3 51 27 Over 10,000 2 13 4 48 33 A l l executives 6 15 14 43 22 the Canadian executives? Table 2 9 helped to answer this question. The four vertical columns gave the education levels of the Canadian executives, of their mothers, of their fathers and of the Canadian .male labour force, 2 5 - 6 4 years of age i n 1921 . The percentage of the respondents' fathers . with less than high school education ( 2 7 $ ) was between one third and one half of the labour force and the percentage who were college graduates or had gone to college ( 3 5 - 9 $ ) was more than six times that of the 1921 labour force. The executives' mothers also achieved a higher level of education than customary. They were almost six times as l i k e l y to have high school graduation or better than the 1921 male labour force. S t i l l their sons far outstripped them. The percentage of college graduates among the sons was three times as great as among the.fathers and ten times 5 9 Table 2 9 . Education of Parents Compared with Their Sons and the Canadian Labour Force in 1921 Less than high school Some high school High school graduation Some college University graduation Totals Labour Force 1921 Fathers 7 0 . 2 $ 27 - 3 $ 2 0 . 1 21 . 5 4.4 18.3 2 . 1 1 0 . 7 3 . 2 2 2 . 2 1 0 0 $ 1 0 0 $ Canadian Mothers Executives 2 3 . 9 $ .8% 23.1 5-4 3 8 . 8 14-5 8.1 14-2 6.1 . 65.1 1 0 0 $ ' 1 0 0 $ the mothers. The percentage of those who failed to fini s h high school was only about one eighth the percentage of the fathers or mothers. To some extent the educational.level was related to the social class to which the executive was born. Consequently a discussion of the educational levels achieved by the executive's parents lead to a discussion of his social origins i n the next section. SOCIAL ORIGINS Table 3 0 showed some relationship between the father's occupation and the educational level achieved. Nevertheless, over half the respon-dents got to university regardless of the father's occupation. They did much better than the male labour force where only 1 6$ got that far. However i t would be unwise to generalize on the educational achievements by social class because a l l the questionnaires went to successful managers. 60 Table 3 0 . Father's Occupation and Level of Education of Respondents Father's Occupation Incomplete high school Educational Level of Respondents High school graduate Some University Post College degrees graduatec Hourly worker Farmer White collar Small owner Medium, large business owner Foreman, f i r s t level supervision Minor executive Major executive Professional 1 0 5 7 4 3 6 0 5 2 0 2 2 18 1 7 2 3 8 9 4 10$ 7 11 18 17 10 18 2 2 9 . 63 62 5 7 62 63 68 69 82 18$ 2 3 21 18 21 2 0 2 0 2 2 3 6 A l l respondents Male labour force 1961 7 5 1 5 9 14 1 0 6 5 2 3 Post graduate percentages included i n total for university degrees, Those showing fathers as hourly workers had the lowest level of education, followed by farmers and white collar workers. The sons of professional men had the highest percentages of university degrees and post graduate studies. The sons of major executives were next at both those levels and a l l had completed high school. How the other groups would 61 rank would depend on what was chosen as the best indicator of achieve-ment level. The latter table used the father's occupation when the respondent became self supporting. The questionnaire also obtained his position at the time the son was i n grammar school. However, as Table 31 indicated, there was not much change during that period: some owners increased their business and some f i r s t line supervisors and minor executives moved farther upward. Also introduced i n Table 33 was the paternal grandfather's occupation to give some idea of mobility over three gener-ations. Since the Canadian census used different classes from the questionnaire to cover the managerial occupation, the f i r s t five groups have been subtotalled to provide figures readily comparable to Canadian census s t a t i s t i c s . Previous sections have shown representation ratios comparing census statistics with the country of birth, size of birthplace and educational level. The same technique has been used i n Table 32 to relate the fathers' and grandfathers' occupations shown i n the previous table to census s t a t i s t i c s . Other occupations were dropped and the percentages rounded to simplify the presentation as the ratios were the key concept examined i n this table. The managerial occupation was greatly over-represented among both the grandfathers and the fathers of the Canadian executives respon-ding to this item. The two ancestors were i n the managerial group seven, and eight and a half times respectively the proportions of that class in the male populations of their periods. Professional men were over-represented about four and a half times. Meanwhile the other occupations 62 Table 31 . Occupational Distribution of Fathers and Fathers' Fathers Father When Son Father's Occupation in School Self-supporting Father Small business owner 18.7$ 16.7$ 21 .2$ Medium, large owner 3.9 5.6 4-9 • First line supervisor 7.1 6.4 2.3 Middle line executive 12.9 10.9 3.5 • Major executive 9-4 14-6 4.6 Total managerial 52.0$ 54.2$ 36.5$ Professional 17.8 16.5 11 .4 White collar 12.1 12.0 9.8 Hourly worker 9.6' 8.6 11 .2 Farmer 7.1 6.4 30.5 Other 1 .4 2.3 .7. . Totals 100 $ 100 $ 100 $. were under-represented among the antecedents of the respondents. Lowest among the groups shown was the hourly worker or labourer with less than a quarter of his proportion among the forefathers. Advocates of a free and open class structure i n Canada would be disappointed i n the apparent trend towards less mobility into executive rank i n Canada. Most ratios were farther away from the hypothetical "1 .0" for the fathers of the business leaders than for their grandfathers. This would be expected since the grandfathers are another generation removed from the respondents. Table 3 2 . Occupational Mobility Rates for Fathers and Paternal Grandfathers Occupation Comparison for Fathers Work 1931 males a Ratio b Comparison for Grandfathers a b Work 1911 males Ratio Managerial 5 4 $ ° 6<f 8 . 5 3 6 $ 5 $ 7 . 0 Professional 1 7 4 4 . 5 11 2 4 . 6 White collar 1 2 14 • 8 5 1 0 10- . 9 4 Farm 6 3 5 • 5 6 31 4 0 . 7 6 Labourer 9 4 0 .24 11 41 . 2 7 Dominion Bureau of Statistics, 1961 Census of Canada ( 9 4 - 5 0 1 , Table 3 ) . Proportional representation = 1 . 0 0 'Percentages have been rounded to simplify presentation. Considerable movement from rural areas to cities and towns has taken place over the past sixty years. In both the fields of educational achievement and movement into executive ranks, those of farming origins have done better than those of labouring origins. Generalizations about the r i g i d i t y of the social structure i n Canada based only on Table 3 2 would ignore the significant changes that have taken place through immigration. It has already been pointed out that a large number of the executive's and their ancestors were born outside Canada. Percentages were as follows: respondents, 2 9 $ ; their fathers, 5 1 $ ; their grandfathers, 6 4 $ . Generalizations would assume a similar occupational distribution i n their native countries. Another assumption inherent i n comparisons like those i n the last table i s that fathers of a l l occupational groups provide an equal number of sons in the succeeding generation. As i s well known, the lower groups have proportionally more offspring than the upper classes of most western societies. This differential f e r t i l i t y i s almost impossible to adjust for s t a t i s t i c a l l y . The result i s that the proportions of sons from lower occupations are underestimated while those of upper occupations like professionals are overstated. The f e r t i l i t y rate of the Canadian execu-tives i s discussed later i n the section on marriage and family. Most studies of intergenerational mobility follow the movement in each of the occupational groups as the family unit shifts i t s position i n the occupational structure. Thus Table 33 presents the distribution of the fathers of the Canadian executives for each occupational group, by the occupations of the fathers' fathers i n each group. To explain further, the f i r s t column of Table 33 indicates that 80$ of the fathers who were hourly workers were the sons of hourly workers. Another 10$ had fathers who owned businesses and the balance were i n other occupations. The diagonals have been underlined because, they repre-sented occupations i n which there had been no movement from grandfather to father. If mobility took place in a random fashion and the paternal grandfathers' occupation did not influence the fathers' choice of work, then a l l the vertical columns would approximate that on the extreme right. Despite the fact that a l l the respondents were from executive rank, the table conformed with the two generalizations on mobility quoted on page 14. Ratios of occupational s t a b i l i t y have been calculated by dividing each column i n Table 33 by the last column of the same table. These are Table 3 3 . Distribution of Fathers i n Each of Eight Occupational Groups According to Occupation of Paternal Grandfather Occupation of Father Occupation of Grandfather CD > CD U • H > CD • H cj O 3 . - P H cd • [5 o cfl H . O fH CD O S3 rH O X CD O o ra CQ CD M • H CD O CQ • H CD CQ U . CD > U 03 P CD CD S f4 O iH CD o a - P • H CD PH O u . - H to • r s o 03 cd (-3 PP C O J i P H D i s t r i -bution of grand-fathers i n groups of occupations Labourer Farmer White-collar Business owner Supervisor or minor executive Major executive Professional percentages 80 .0 41 .4 3 2 . 1 26 .2 18.8 1 5 . 4 28.2 0 41 . 5 11 . 3 8 . 2 10.6 2.6'. 7 . 7 3 - 3 4 . 9 18 .9 1 1 . 4 9 - 4 12.8 6 . 4 10.0 7 - 3 22 .5 42.8 30.6 28.2 19.2 3 . 3 4 - 9 5 . 7 3-1 1 2 . 9 2.6 5.1 3 0 . 9 11 .2 9 . 8 26 .3 0 0 3 . 3 0 1 . 9 1 . 0 5 . 9 2 0 . 5 6 . 4 4 . 6 7 . 6 7 . 3 11 . 8 1,6.4 2 5 . 6 .11 . 4 shown on Table 3 4 . The ratio on the diagonal indicated the tendency of the father to follow his father's occupation. It was the highest ratio i n each row and because of i t s significance i t has been underlined. This ratio of continuity was the highest for the c e l l indicating the father following his father i n the major executive position. Since the fatherts occupation was used at the grammar school position, the ratio slightly understated the father'.s movement into major executive rank from a lower supervisory 66 Table 34- Ratios of Movement of Fathers from Paternal Grandfathers' Occupation Occupation of father Occupation of Grandfather CD i> CD iH •H i> CD ^ -P •H O 3 -P rH cd & o cd rH o m 0 o rH O M 0 o O w X •H CD O 03 •rH 0 K! 8 U CD > U ra p CD Q) S3 u o Is 0 o a -P •H CD 3 O ?H •r) ra •r-3 o o3 cd 1-3 ! 3 pq Average Mobility-out of occupation Labourer 2.59- 1 .34 1 .04 .85 .61 .50 • 91 .88 Farmer - 3.71 1 .01 .73 .95 .23 .69 .72 White collar .34 .50 1 -93 1 .16 .96 1 .31 .65 .82 Business owner .38 .28 .86 1 .63 1 .16 1 .07 .73 .74 Supervisor or minor executive .57 .84 • 98 .53 2.22 .45 .88 .71 Major executive - - .41 .22 1 .28 4.46 1 .39 .82 Professional .29 - .67 .64 1 .04 .1 46 2.25 .79 Diagonal mean 2.68 Average mobility out of occupation .78 position. The other ratios gave clues to the movement out of that background into other occupations. As an indication of overall mobility out of a given occupation, the average has been shown i n the extreme right column. Both the ratios of occupational s t a b i l i t y and the average of the other ratios have been used i n the next chapter for comparison with other mobility studies on executives. BUSINESS CAREER The chain of events which brings a man into executive leadership begins as far back as his grandfather's generation. The occupational and social characteristics of his forebearers enhance or reduce his chances for movement into high position. The size of his birthplace and i t s geographic region play a part; the educational level he attains, the f i e l d of study he elects, and the college he attends are a l l part of the long selection process which determines whether he w i l l become a business executive. Such antecedent characteristics are not an iron mould that controls his subsequent career, however. The process goes on after he finds his f i r s t job, a process related to the executive's own volition, his a b i l i t y and his energy resources. Information .was gathered at specific points, on the main career lines from the f i r s t occupation to the present position to find out the route to becoming a top business executive. The average respondent to our questionnaire on Canadian execu-tives became self-supporting at age 20 with a standard deviation of 3.03 years. The educational level attained naturally influenced the age at which he became self-supporting. If he had less than high school, the mode was 16 years old; some high school, 17; high school graduate, 18; some college, 19; university graduate, 21; and- post graduate 22 years. The occupational sequences of the respondents were shown i n Table 35. More than half the entire group were included i n the lower white collar occupations at the time of f i r s t employment. The professions 68 Table 3 5 • Occupational Sequences of Canadian Executives Occupation Firs t Occupation 5 years later 1 0 years later 1 5 years later Parmer 1 .0% .0% .2% Hourly worker 16.1 4 . 2 . 0 . 0 White collar 52.2 27 .6 6 . 0 1 . 4 Owner of small business 1 - 7 1 . 5 2 . 2 . 5 Owner of medium or large business •4 4 . 0 2 . 2 1 . 6 First line supervisor 2 . 1 2 7 . 6 2 2 . 6 7 . 0 Middle line supervisor 1 . 5 1 3 . 6 4 3 - 1 3 0 . 3 Major executive 0 . 0 . 2 11 . 7 5 2 . 3 Professional person 1 3 . 0 11 . 8 9 . 2 6 . 1 Military service 9 . 2 5 . 3 2.0 • 5 Other 2 . 7 3 . 7 . 9 . 2 Totals 1 0 0 % 1 0 0 fo 1 0 0 fo 1 0 0 f Number answering All 4 5 6 4 4 6 4 4 2 No response (of 4 8 5 ) percentage 1 . 7 6 . 0 7 - 9 8 . 7 involved another 1 3 $ - Only 1 6fo of the . executives s tudied began their careers i n the hourly worker class. The office, rather than the shop, provided the f i r s t employment for most of the respondents. It should be noted that 2% began their careers as owners of.business. Furifcher examination of the career sequence indicated that 41 A% had moved up into a supervisory position by the time they were employed 6 9 for five years. After ten years most of them were i n middle-line super-visory or major executive positions with a l l other occupational categories decreasing in size- By the time they had been employed fifteen years, 52 . 3 $ were major executives and 3 0 . 3 $ were middle line executives. They had moved out of the laborer and white collar occupations quite decisively. Table 3 6 showed a breakdown of the career sequences by educational level. While university studies may have delayed the respondent's employ-ment, they accelerated his advancement afterwards. Within five years a l l with post graduate studies and three quarters of those with a degree had l e f t the hourly ranks. Half of those employed in salaried ranks who went to university had also moved into supervisory and executive ranks. By the time ten years had passed, none of the respondents remained i n farming and labouring ranks, and the salaried employees were a ninth of what had been f i r s t employed in white collar positions. The percentages reaching minor or professional levels were 7 4 $ for the post graduate, 6 7 $ for graduates, 58$ for some university and 4 7 $ of those with lower educational • levels. The rank achieved was directly related to his educational achievement. By the time fifteen years of employment had passed, over eighty per cent of the graduates had reached executive levels with smaller proportions of those at lower educational levels. At the degree level the fields of languages and humanities appeared to progress fastest followed by engineering. Masters of Business Adminis-tration moved into supervisory ranks within five years, faster than any other graduate f i e l d . After ten years there was a larger proportion of such graduates at the executive level than any other f i e l d . • Table 36. Educational Levels and Occupational Sequences Incomplete High School Some University Post Occupation high school graduate college degree grad. Totals First occupation Farmer Hourly worker Salaried worker Small owner Medium, large business owner First level supervision Minor executive Professional Other Totals Five years later Farmer Hourly worker Salaried employee Small owner Medium, large business owner First level supervision Minor executive Major executive Professional Other Totals 1 3 1 0 0 5 4 17 8 36 11 76 22 44 38 91 52 247 1 1 4 1 1 8 0 0 1 0 1 2 0 0 1 7 2 10 0 1 2 2 2 7 1 t 3 34 23 62 0 3 8 30 16 57 — _ — 7 - — 29 70 66 201 108 474 1 1 0 0 0 2 2 7 2 8 0 19 8 . . • 27 20 44 • 25 124 1 3 1 1 1 7 1 . 2 5 8 1 ¥7 4 18 18 59 '" 27 126 3 7 7 27 18 62 0 0 0 0 1 1 1 0 3 30 20 54 3 1 4 21 12 41 24 66 60 198 105 453 c3 (Continued) Table 3 6 . Educational Levels and Occupational Sequences (Continued) Incomplete High School Some University Post Occupation high school graduate college , de gre e grad. Totals Ten years later Salaried employee 1 10 1 7 8 2 7 Small owner 1 3 1 4 1 10 Medium, large business owner 1 2 2 '5 0 10 Fi r s t level supervision 5 18 21 4 4 11 9 9 Minor executive 1 2 2 2 2 9 80 4 9 1 9 2 Major executive 2 7 6 21 16 52 Professional 2 0 0 26 1 3 41 Other 0 3 0 3 6 1 2 Totals 2 4 65 60 1 90 104 4 4 3 Fifteen years later Salaried employee 1 3 0 1 2 7 Small owner 1 1 0 0 0 • 2 Medium, large business owner 1 • 2 . 1 2 1 7 First level supervision 1 10 5 ' 9 6 31 Minor executive 5 28 20 65 1 4 1 3 2 Major executive 13 24 35 9 4 6 4 2 3 Q 5 0 Professional 1 0 0 17 9 2 7 Other 0 0 0 0 „ 3 3 Totals 2 3 6 8 61 188 9 9 4 3 9 Another factor that accelerated progress into executive rank was experience in foreign countries. The two-thirds of the respondents that had no foreign experience moved into middle or major rank more slowly: 36$ reached that level i n five years, 49$ in ten. For executives with foreign experience, the percentages were 45$ i n five years and 55$ i n ten That trend should encourage people to seek transfers to the United States or elsewhere to advance their progress i n the firm. There was a relationship between education and foreign experience Of those with incomplete high school, 23$ had foreign experience and the percentage increased with further education un t i l 44$ of the post gradu-ates had foreign experience. Canadian born were less l i k e l y to have foreign experience: only one i n five as compared with five out of six of the United States born. Foreign ownership also influenced the degree of experience i n • other countries. Only 14$ of the executives of wholly-owned Canadian firms worked outside of Canada, but 48$ of the executives i n foreign owned firms had foreign experience. Firms that have operated i n Canada less than twenty years were more l i k e l y to be foreign controlled with Canadian participation i n ownership. They had fewer employees than the average but placed a higher emphasis on education. Executives of such firms were twice as li k e l y to be born i n the United States or continental Europe as the total sample. One must conclude that new firms i n Canada have made extensive use of foreign money and talent. The mobility of the father while the respondent progressed from grammar school to self-supporting was significant only i n a few areas. 73 Middle executive rank was achieved by 21$ of the f i r s t line supervisors .while 31$ of the minor executives advanced to major roles. For 83$ of the respondents, there had been no change i n the fathers' occupations. Because the occupational classifications were different from those of United States and the questionnaire, a comparison with census figures was awkward. However, almost ten times the number of executives that would be' expected came from the managerial class of the 1931 census.. The only • other group with above average representation i n the fathers of the execu-tives was the professional group with 4-••5' times i t s proportion i n the labour force. A l l other groups were under-represented i n the populations studied. The age at which the respondent entered his present organization ranges from 13 to 64 years of age. Despite the fact that the highest frequency for becoming self supporting occurred at age 22, the mean for entering his present organization was 30 years with a standard deviation of 10.45 years. Table 37 shows the age group at which the executives joined their present firm. Plotting the frequencies for this d i s t r i -bution would show a curve skewed towards the lower ages. The word "organization" used in these questionnaires proved ambig-uous in view of taker-overs; i . e . An executive from Gulf O i l might consider his organization new i n 'Canada, but someone from British-American would consider the same firm old. This weakness i n phrasing the item was a more serious problem i n this Canadian study than those i n which i t had been used previously because of the large numbers of take-overs of Canadian enterprises by non-residents. Another aspect of the business career closely related to mobility Table 37. Age of Entering-Present Organization Age Number Percentage Under 24 179 37.5$ 25 - 34 - 1 6 3 34.1 35 - 44 81 16.9 45 - 54 40 8.3 Over 55 15 3»2 Totals 478 100 $ from one occupation to another i s the movement from one business firm to anotherJ Jennings suggested that "The old saw of hard work and devotion to corporation i s disappearing rapidly» To be mobile t one must not become permanently i d e n t i f i e d with any one corporation."^ 0 The extent of this i n t e r f i r m mobility was shown on Table 38* Of the respondents 27$ have been with the same firm throughout t h e i r careers, while 22$ have been associated with four or more firms* The average number of firms served was 2.4 and 1 «7 as an executive>. This was less i n t e r f i r m mobility 11 than found i n Warner's study* He showed 25$ staying with one fir m and 30$ associated with four or more firms. When i t came to association as executives, 48$ of the Americans had been associated with one firm compared with 58$ of the Canadian respondents* 1 0E.E. Jennings 9 The Mobile Manager (East Lansing, Michigan State University, 1967), p. 24*. 11 Warner and Abegglen* op* cit«« p.* 127* 7 5 Table 3 8 . Number of Firms- Associated With Number of Firms As Employee As. Executive 1 2 7 $ 5 8 $ 2 27 • 24 3 2 4 11 4 .:. 9 ' ... . 5 5 6 . 6 6 .. 3 .4 7'or more 4 .4 Totals 1 0 0 $ 1 0 0 $ Influential connections played no part i n obtaining the f i r s t job for three quarters of the respondents. In the case of starting employment, the following connections were present: relatives, 1 2 . 3 $ ; friends, 1 1 . 9 $ and business associates, 4 - 6 $ . . ... ... . In the case of the current firm, influential connections were present for 2 9 $ of the respondents. Where such contacts did exist, they benefitted the man who was i n the president's or chairman's post most frequently, as shown i n Table 3 9 . Only when the father was often a major executive or the owner of a medium or large business did the percen-tage of respondents with connections exceed the average of 2 9 - 3 $ . -As the average president or chairman was older than the average vice-president,' : such figures suggest a decline i n family influence i n the future. As presidents are often chosen for their a b i l i t y to get along with others 7 6 Table 33- Influential Connections in Present Firm Position Relatives Friends Business Associates President or chairman 11 .8$ 1 3 . 7 $ 1 7 . 1 $ Vice-president 8 . 4 8.0 1 4 . 1 Other officers 4 . 9 . 11 . 7 1 3 . 3 A l l executives 9 - 5 11 .1 1 5 . 5 U.S.-born respondents 6 . 3 11 . 4 1 2 . 7 i t would be unwise to extend that conclusion to'the other contacts mentioned. These stati s t i c s indicated that influential connections played a small part i n Canada. Those with no connections were 70.7$ for a l l respondents and 75$ of the U.S. born. Another observation from this study was that the U.S. born respondents had even fewer connections than • the proportions for a l l respondents. MARRIAGE AND FAMILY . Median age for the respondents' f i r s t marriages was 26 for those over 50 and 2 4 years for those under 5 0 years old. As the average age of males marrying i n 1 9 3 9 was 2 9 , the executives married younger than the general population. Less than one per cent stayed single as compared with more than ten per cent of the male population i n Canada. Table 40 indicated that there were also fewer widowed or divorced. One can only conclude that the executive i s more l i k e l y to be happily married. 77 Table 40. Marital Status of Respondents Status Males 45-54 1 966 Census Canadian Executives Single 10.6$ .8$ Married 84.4 97.8 Widowed 4.4 .6 Separated or divorced .6 .8 Data collected about the occupational origins of the women who marry Canadian executives was displayed i n Table 41. Business and profes-sional backgrounds supplied 62$ of the wives as compared with 70$ for the respondents. Only 8$ of the wives' fathers were major executives compared with .14$ of the executives' fathers. Farms were the origin of 13$ of the wives compared with six per cent of the executives. Further analysis indicated that the executives married women from their own or the adjacent classes more than half the time. The respondents married women of lower status almost 30$ of the time and women from higher socio-economic origins less than 20$ of the time. Managerial occupations were represented about eight times and professional about four times i n the wives' fathers as compared with their proportion i n the 1931 male labour force. The other occupations were not under-represented as much as among the executives' fathers. Only about 10$ of the executives married wives outside their occupational origins. The Canadian executives were less l i k e l y to marry women of lower rank than those of the Warner study. Compared with 62$ in-78 Table 41• Male Labour Force.of 1931 Census Compared with Occupations of Wives' Fathers and Respondents' Fathers 1931 Male Wives' .Occupation Labour Force Fathers Fathers Owner, small business 21 .4$ 16.8$ Owner, large business 3-4 5-6 First line•supervisor 6.2 6.4 Middle line executive i 10.4 ' 1 1 . 0 Major executive 8.0 14.4 Total Managerial 6.4$ 49-4$ 54.2$ Professional 3-7 13-4 16.4 Farmer 33-7 12.7 . 6.4 Hourly worker 41 -7 10.2 8.6' Clerk, salesman 14-2 12.9 12.0 Other .3 1 .4 2.4 Totals 100 $ 100 $ 100;:. # this study, . 51$ of the wives i n that research came from business and professional origins. Wives chosen were more highly educated than the average Canadian female. They were also better educated than their fathers, but not as highly as the respondents, as shown i n Table 4 2 . Their marriage produced an average of three children, which was 1 5 I b i d . , p. 179. 79 Table 42. Education of Executive and his Wife Education level Canadian Executive Wife Incomplete high school 6.2$ 10.1$-High school graduation 14-5 40.1 Some college 14-2 22.2 University graduate 42.6 : 23.9 "' Post graduate 22.5 3-7 Totals 100 $ 100 $ higher than Canadian' census statistics show. Moreover, there was a trend toward larger families among the younger executives evident i n Tabie 43• The executives' marriages produced 755 sons or 1 .58 per respondent. Warner's study found only 1 .01 sons per business leader although the ratio was.higher for owners of large businesses and major executives than for.. 1 4 those who moved up from lower status positions. The high f e r t i l i t y rate for Canadian executives may be one reason why there appeared to be less mobility here than i n the United States. For our southern neighbor, there were barely enough sons to f i l l the occupational positions of the business leaders. In this study there were 58$ more than necessary to f i l l the respondents' places. The trend towards larger families among the younger executives might make movement from other occupational origins into executive ranks more d i f f i c u l t i n the future. 1 4 I b i d . , p. 250. 80 Table 43. Number of Children Number Under 50 Over 50 1 5.8$ 14.2$ 2 2 3 . 7 42.2 3 34.6 21.4 4.... 16.0 16.2 5 12.2 4.3 6 3 - 9 1.0 7 or more 3 -8 . . 7 Totals 100 $ 100 $ Respondents reporting ' children ' 156 303 As to son's careers, 23.1,..were employed as indicated in Table 44. A larger proportion gained professional employment than for the respondents when they became- self-supporting. Many have salaried employment, similar to the way their fathers started out. The percentage who were business 1 5 owners or partners was only half of what Warner showed. As the response categories for the questions were slightly different, i t i s not possible to show an exact comparison for the up-coming generation. Ibid., p. 205-81 Table 44. Careers of Executives' Sons Occupation Number Percentage Farmer 1 0 4.4 Hourly worker 1 0 4.4 Salaried worker 86 3 7 - 5 Business owner or partner 1 5 Professional > 101 44.6 Government Service 9 2 . 6 Totals 231 1 0 0 % COMMUNITY ACTIVITIES Most mobility studies do not deal with community a c t i v i t i e s . However, Porter discussed the act i v i t i e s of his economic elit e outside the board room, 1 6 at some length. Question 19 was intended to discover the involvement of major executives i n philanthropy, religion and other activities outside the firm for comparison with the earlier Canadian study. Because his book i s often used as a text or reference for university courses on Canadian society, i t was thought worthwhile to include such comparisons which might apply to the Canadian executive. The responses might indicate whether such organizations helped train an executive and/or made use of his managerial a b i l i t y . ^Porter, op. c i t . , p. 296-303. Table 4 5 . Importance of Participation i n Social Organizations ^ Neither Types of Social Helps nor Don't Organizations Much Some L i t t l e Hinders Know Country Clubs and Businessmen's Clubs 9 - 5 $ Military Clubs University Alumni and Fraternities 1 2 . 5 Sporting cOrubs 2 5 . 0 Other 8 . 3 Hone 7 . 8 4 2 . 9 $ 9 . 5 $ 3 8 . 1 $ 4 2 . 9 28;6 1 4 . 2 14 . 3 $ 7 5 . 0 - 1 2 . 5 . 2 5 . 0 50 .0 5 8 . 3 - 3 3 . 3 -3 1 . 3 18.6 3 1 . 4 1 0 . 9 Table 4 5 has been adapted from a study including the attitudes 1 7 of executives towards social organizations. Although space was provided for answers from the executives on whether such activities might hinder promotion, none thought such participation would. Even those who were not active generally f e l t that such projects did help .. progress. When they commented on the companies' attitudes towards such participation, 5 5 $ said that their employers had no policies i n this regard and exerted no pressure. Another 18 $ did not know what their employers' attitudes were. Some f e l t the company was favorable to participation and i n a few instances actually paid for some of the 17 R.L. Powell, Race, Religion and the Promotion of the American  Executive (Columbus: Ohio State University, 1969T> P« 5 6 . 83 memberships. Another small percentage said the firm had no objection to membership. The conclusion was that the majority of executives saw value i n joining social clubs, but did not feel compelled to join by their employer1s a t t i tude. Over 85$ of the respondents were active i n at least one community activity and frequently served as an officer as indicated by Table 46. Industry, ownership or location of head offices seemed to have l i t t l e bearing on the extent of their outside a c t i v i t i e s . Table 46. Executive Participation i n Community Activities Number of areas Currently Active Presently or formerly an Officer 0 14.2$ 22.9$ 1 13.8 19.2 2 23.9 22.9 3 : 21 .2 18.2 4 18.4 10.5 5 5.0 4.7 6 or more 3.5 1 .6 When the number of'activities was related to the executive's birth-place, the Canadian born was more active while those born i n a non-English speaking country were the least l i k e l y to be active or hold office. Over-representation in executive ranks by United States born was not reflected in community action where their participation rate was slightly less than for Canadian-born. Those born i n other foreign countries had a lower 84 activity level and less officer experience than those born i n English speaking countries. The section on nativity had indicated that the latter group was under-represented i n the top executive ranks. Language d i f f i c u -l t i e s , cultural differences and prejudice might a l l play a part i n this lower level of representation. The executive over 50 was slightly more active than his younger colleague with an average of 2.5 activities compared with 2.3 for those under 50. The older man had slightly more experience as an officer. He had served i n that capacity i n 2.1 areas compared with 1 .6 for respondents under 50. Of course there had been more time for his capabilities to be recognized and u t i l i z e d . Rank in the executive hierarchy was also reflected i n experience as an officer i n community organizations. The president and/or chairman had served as officer i n an average of 2.1 groups compared with 1.8 for the vice president and 1 .7 for other officers. Table 47 indicates the relative participation i n various types of community activities by the respondents. Professional bodies and trade associations had the highest rate, followed by charity drives and r e l i g -ious organizations. P o l i t i c a l and local government activity was lower than expected. Professional and trade organizations provide the executive with opportunities to stay current i n his f i e l d through business magazines, conferences and short courses and give him contacts with others i n the same area. Of the respondents over 50, 42.8$ were serving as officers at the time of the survey and another 9-5$ had served" a term'previously. Another 20.8$ were currently active. While almost as large a proportion 85 Table 47- Community Activities Participated In Active and Formerly Type Active Officer an Officer None Professional and trade organizations 24.3! t 38.8% 8.5$ 28.4$ Charity drives 26.8 24-3 12.4 36.5 Church or synagogue 22.1 21 .6 8.9 47./! . Educational bodies 15 .0 12.4 7.0 65.6 Parent activities • 6.2 12.8 12.1 68.9 Service clubs 11.1 10.7 8.3 69.9 . Other 3.1 "6.4 1 .9 88.6 Po l i t i c a l organization 2-9 2.3 1 .0 93.8 Local government 1 .9 1 .2 1 .2 '95.5 of those under 50 (62$ as compared with 63-6$) were active, 30.4$ » were currently serving as officers with another 6.3$ having an earlier term. The chief executive was more l i k e l y to have an office i n a profes-sional or trade organization; 40.4$ & were serving at the time of the questionnaire and 10.2$ earlier, as compared with 38.6; t and 7.6$ for vice-presidents, and 33-3$ and 4.8$ for other officers It would appear that such organizations are making use of the s k i l l and prominence of the chief executive. Porter suggested that professional and trade bodies serve as an extension of economic power i n that they often serve as pressure 1 8 groups serving the interest of the members. Similarly, 7 3 - 3 $ of the chief executives have worked on charity drives, as compared with 5 8 . 4 $ of the vice-presidents and 4 4 . 4 $ of the other respondents. Of the. executives over f i f t y , 6 9 . 4 $ have been involved compared with 51 . 3 $ of those under f i f t y . Wealth, prestige and experience put their services i n demand i n this area. Porter described organized philanthropy as governed by the corp-orate e l i t e of Canada. They supplied funds and recruited younger execu-tives to help on the campaign. He claimed such activity has passed from 1 9 the control of religion to the control of big business. Religion was ranked third highest of the community a c t i v i t i e s . At the time of the survey, 4 3 - 7 $ of the executives were active i n church activities, 21 . 6 $ as officers. Another 9 . 5 $ had served as officers previously. Although rank i n the hierarchy seemed to make no difference i n participation, those respondents under 5 0 showed 3 $ less activity i n this area. Ho attempt was made to identify religious denomination. Service on school boards, university senates etc. of educational bodies was performed by 3 4 - 4 $ of the respondents. In this way 4 0 . 7 $ of the older executives and 2 1 . 5 $ of the younger executives had been active. The chief officer was more l i k e l y to s i t on such b o d i e s — 4 7 - 1 $ as compared with 2 5 . 4 $ for vice presidents and 21 . 5 $ for other officers. Porter had commented that members of the business elite were often chosen to honorific 2 0 roles on educational bodies. In the area of parent act i v i t i e s , the younger executive was more ^Porter, op. c i t . , p. 3 0 0 . ^Ibid., p. 3 0 2 . 2 0 I b i d . . p. 3 0 0 . active. In such groups as the P.T.A., Boy Scouts, L i t t l e League etc. 28.8$ were currently active as compared with only 14.7$ of those over 50. This could be related to the trend towards more children noted i n the section on marriage and family. The chief executive has been less active as an officer i n parent organizations. In such a capacity 20$ have served as compared with 28.9$ of the vice presidents and 50.2$ of the other officers responding to the survey. The other officers were more active i n service clubs like Lions, Kiwanis, Shriners, etc. including the acceptance of officer position. Generally the executives over 50 were more active now and formerly as officers i n this class of activity. I n c t h In other groups like hospital and library boards 11 .1$ of the executives were active. Age did not make much difference although the chief officer was currently, more active than the vice-president or other officers. Participation in p o l i t i c a l activities was limited to 6.2$ of the respondents which was lower than one would expect from other studies. Porter was able to identify the p o l i t i c a l party a f f i l i a t i o n of almost 27$ of his business e l i t e from biographical information, although he acknowledged that directors were more li k e l y to have membership than 21 full-time officers who were the prime subjects of this study. In another Canadian survey done 32.6$ of the presidents indicated that they personally 22 made a contribution to a p o l i t i c a l party. However financial contribu-tions were less "active" than participation shown in this study. 2 1 Ibid., p. 297. 22 Executive, the Magazine for Canada's Decision Makers (Southam • Business Publications: May 1968, Vol. 10. No. 5-), p. 58. ~ 88 Newcomber was able to identify the p o l i t i c a l a f f i l i a t i o n of 52$ of her big business presidents of 1950 from biographical data. However the U.S. system of primaries requires more commitment to specific parties than does Canada's p o l i t i c a l system. Moreover any U.S. executive i n Canada would lose his American citizenship i f he engaged in any p o l i t i c a l activity, even voting. Participation i n local government i s limited to 4 - 5 $ of the execu-tives and age or rank do not appear to make much difference i n the extent of such a c t i v i t i e s . One function expected of a chief executive i s participation i n public aff a i r s . The study quoted at the start of this section indicated that many executives feel that such activity helped their progress although they did not feel compelled to participate by any company policy. This section has tried to give an idea of the kinds of social organizations i n which Canadian executives share. Not intended to be all-inclusive, the questionnaire item did not include a l l the types of activities possible. However i t did give an indication of the number and type of community activities i n which big business executives take part and hold offices. SUMMARY OP THE EXTERNAL PROFILE The objective of this section i s to bring together the main items of the chapter into an ordered summary so the outstanding factors learned about the top executive i n Canada were reviewed prior to making a compari-son with some of the other mobility studies that have been conducted on executives. Table 48 attempted to take the information.from the returns and 8 9 Table 4 8 . Chronology of Events and Corresponding Ages for Canadian Executives Year Event Age 1 9 1 4 Birth -1 9 3 4 Became self-supporting 2 0 1 9 3 5 Graduated from University 21 1 9 3 9 Married 2 5 1 9 4 0 Entered supervisory ranks . '26 1 9 4 4 Joined present firm 3 0 1 9 4 5 Entered middle management ranks 31 1 9 4 9 Became major executive 3 5 1 9 6 0 Assumed present position 4 6 1 9 6 7 Answered questionnaire 5 3 convert the averages into years and ages' i n order to make a summary of the external profile of the Canadian executive more meaningful i n terms of historical events. Since the questionnaire was completed i n mid 1 9 6 7 , the average age of 5 2 . 6 years gave a birth date of 1 9 1 4 . The average respondent was most lik e l y born i n an urban center i n Ontario. The chances are better, than average that he may have been born i n United States or western Canada. He was less l i k e l y to have been born i n Quebec, the Atlantic provinces or Europe than the total population suggested. The average respondent has been geographicalLy/.mob"iIe. Only ' 2 5 $ of the returns came from the same province i n which the executive was born. The average executive came from middle or upper class.parents who immigrated to Canada prior to World War I. Perhaps because of his family background, the executive did get a good education although i t was completed during the depression when money and jobs were scarce. He went to university and was over eleven times as li k e l y to have graduated as the total male labour force in 1961. Nothing distinguished the top executive from the general population as much as the high level of education achieved. Moreover i t would appear that the emphasis on university education has increased as there were more respon-dents under 44 with two degrees than with none. The respondent was three times as l i k e l y as his father to complete a university degree despite the fact that both his parents were also better educated than the labour force of their time. Although age 21 was the most frequently mentioned age for becoming self-supporting, followed by 2 2 , then 18, the mean or average was 2 0 . This age was used i n the chronology to allow for those who contributed to the cost of their education by scholarships and working. One i n twenty respon-dents was a full-time student after becoming self-supporting. Although military service was not mentioned on the questionnaire, over 15$ of the respondents wrote i n that occupation as the f i r s t job or at the five, year point. Actual numbers were probably higher. Conse-quently the war affected the careers of a significant number of the respon-dents despite the fact that Canada has no compulsory military service. An average age for marriage of 25 would give 1 939 as the year for that event. That was younger than the 2 9 year old average for Canadian males that year. Fewer respondents were single, divorced or widowed than for the male population over 2 5 i n the 1 966 census. 91 .The marriage produced three children, again above the Canadian average. Almost 45$ of those sons that were employed had professional occupations, a much higher percentage than for the respondents when they started their career. Salaried employment involved 37$ of the sons, but few were owners. It would appear that the sons were following the high educational and occupational status achieved by their fathers. The average age for entering the present, organization was used in the chronology although other ages appeared more frequently i n the responses. On an integer basis, the number of interfirm moves was one prior to becoming an executive. Influential connections, contacts, pull or whatever term might be used had l i t t l e effect on getting the f i r s t job or any subsequent appointment the respondent may have received. Although some of the respondents were i n supervisory ranks within five years after starting work, the median passed that point shortly after. Movement then was quite rapid as over half were at the executive level within ten years and major executives by fift e e n . The points selected for the chronology r e f l e c t this rapid upward progress. There were two major factors that distinguished the external profile of the top executive from the male labour force i n Canada. One was the relatively high occupational status of his father. Over 70$ of the respon-dents came from managerial or professional origins. In relation to pb.pu-lation, he was over eight times as likely to have a father i n the managerial or owner classification of the census and almost four and a half times one from a professional occupation. However influence played l i t t l e part i n securing his appointment. Chances were less than one i n five that his father had a farm or labouring job. The other factor was the high level of education achieved. Over 65$ of the respondents were university graduates as compared with only 5.6$ of the male labour force i n 1961 . The proportional representation was eleven times what would be expected on a random basis. At the other end of the scale, 6.2$ of the executives had not completed high school contrasted with 73.6$ of that labour force. The representation was only one-twelfth what might be expected. One respondent suggested that a high school graduate of the 1960's would not be able to advance to a senior executive position because the emphasis on high educational levels would prevent him from entering the stream. The external profile which has been developed i n this chapter has outlined the relevant characteristics of the top executive in Canada. Some generalizations have been made about his environment and the forces that were significant during his l i f e , particularly during his business career. P i l l i n g out his social, educational and business background was one of the primary purposes of this thesis mentioned in Chapter I. There has also been some discussion of how he reached his position and the route taken. Another use for this profile was to compare i t with those of other executive types as proposed i n i t i a l l y for this research. This i s done i n the next chapter. CHAPTER V COMPARISON WITH OTHER STUDIES The objective of this chapter i s to compare the external profile of the Canadian executive developed i n the last chapter with that of other mobility studies to identify similarities and differences i n Canadian business leadership. The discussion i n Chapter II mentioned numerous studies done on executives. In order to restrict the comparisons to a manageable size, i t was decided to confine tabular presentations to those using the Warner 1 approach. However discussions of Clements' book on British managers and Canadian studies on bilingualism and biculturalism have been included because there were few studies available on executives born i n countries other than United States. Topics covered i n the chapter are birthplace and nationality, education, social origins, and business career. The areas of immediate family and outside activities have been adequately discussed already. BIRTHPLACE AND NATIONALITY Although sixty percent of Canada's population lived in centers of under 3000 people i n 1921, the Canadian born respondents showed the same tendency to come from larger population centers that had been observed i n American mobility studies. Considerable urbanization has taken place 1 R.V. Clements, Managers, a Study of Their Careers i n Industry (London: Allen" and Uhwin Ltd. 1957)• 93 9 4 since that census, but the majority of the Canadian executives replying came from c i t i e s , not from rural areas. Despite the fact that the Canadian census used 3000 for a dividing point, between categories, calculations resulted i n similar ratios of representation i n Table 4 9 . Table 4 9 . Size of Birthplaces Compared Size of Community Warner3, fo R Amerxcan Federal f . R . Overseas0 fo R Can. f Canadian born U.S. R % born R. 400 ,000 and over 26 2 . 4 21 t.9 2 5 15 1 . 4 3 9 1 . 5 2 . 2 100 ,000 - 400 ,000 14 1 . 5 1 2 •1 -5 15 1 0 1 . 3 2 5 , 0 0 0 - 1 0 0 , 0 0 0 1 2 1 . 5 12 1 ,5"> 19 . 1j.9 1 5 2 . 2 1 3 . 1 . 3 2 , 5 0 0 - 2 5 , 0 0 0 2 2 1 . 5 21 1 . 4 2 5 1 .6 19 1 . 3 d 2 5 1 .6 Under 2 , 5 0 0 26 .6 3 4 .6 17 . 4 26 . 4 d . 3 7 . 8 Census year used 1 9 0 0 1 9 1 0 •1 9 2 0 1921 ' 1 9 2 0 W.L. Warner and J.C. Abegglan, Occupational Mobility i n American  Business and Industry (Minneapolis: University of Minnesota Press, 1 9 5 5 ) » p. 8 7 -W.L. Warner et a l . , The American Federal Executive (New Haven: Yale University Press, 1 9 6 3 ) , p. 5 8 , 3 3 3 -C.J. Malferrari, "The American Executive Overseas: an External Profile" (Unpublished Ph.D. Thesis, Michigan State University, 1 9 6 6 ) , p. 3 8 . ^Canadian census ends this group at 3 0 0 0 . Correct ratio would be closer to 1 than shown. The only group to show more of a tendency to come from towns and small rather than large c i t i e s was the U.S.-born respondents serving i n Canada. It was almost as though such a background was more suitable to the Canadian operations.- However i t may be unwise to generalize as the number of U.S. born answering this item was only 7 8 . The proportion of Canadian executives who were foreign born exceeded expectations. Porter had shown 19 -6$ of his economic elit e of 1 9 5 0 as 2 foreign born, half of them from United States. Although he suggested that a sizable share was foreign, his figures were lower than the 28 . 8 $ foreign-born and 16 . 3 $ from U.S.A. for the Canadian executives shown in Table 6 , page 3 6 . The proportion of American-born respondents was about ten times the proportion of U.S. born recorded i n the 1961 census. The percentage increased with the degree of foreign ownership. During the period between the two studies, the amount of foreign ownership of Canadian firms grew, from 2 5 $ to over 3 4 $ -The o f f i c i a l policy of most multi-national corporations i s to hire as many local nationals as possible. A quote similar to the following might be found i n many, books on international business: Most companies compel a firm to employ at least 8 5 $ of nationals . . . The attitude of American business i s that a company should use a minimum of Americans necessary to protect the interest of the owners and hire the maximum number of local nationals A That source gave ratios for the number of Americans i n relation to the total staff employed overseas: developed countries, 1 : 1 0 7 ; semi-developed John Porter, The Vertical Mosaic (Toronto: University of Toronto Press, 1 9 6 5 ) , p. 287. ^Financial Post, Feb. 2 7 , "l 9 6 8 , p. 21 . 4 / Harland Clevland et a l , The Overseas Americans (New York: McGraw-H i l l , 1 9 6 0 ) , p. 1 1 5 . 96 1 :14:7;; undeveloped countries, 1 :29. One study indicated that nine percent of the U.S. overseas executives were in Canada, hut the only comment on'their .backgrounds was that Canada had the largest percentage of university graduates ''of any country reported 6 ' • on. The Royal Commission on Canada's Economic-Prospects recommended that foreign-owned firms include independent Canadians on their boards, s e l l stock to Canadians and publish annual reports on their operations. The Commissioners suggested a lower rate of withholding tax for companies 7 following such practices. Walter Gordon's budget of 1963 reduced the withholding tax on dividends from 1 5$ to 10$ for firms' with at least 25$ of their directors resident i n Canada and 25$ of the voting stock owned by Canadians. Proposed increases i n such taxes for firms not meeting those standards were dropped within a year. Officials of U.S. subsidiaries interviewed on their Canadian opera-tions were aware of the Canadian feeling that Canadians should occupy the top positions. However they f e l t that the degree of autonomy enjoyed by Canadian management was more related to the personality of the senior executives i n Canada than to their nationality. In many cases the Canada operation was more like a branch of the American firm than a separate enterprise. Some o f f i c i a l s f e l t that free movement across the border 5 I b i d . ^R.F. Gonzalez and A.R. Hegandhi, U.S. Overseas Executive, Orientat-ions and Career Patterns (East Lansing: Michigan State University, 1967), p. 63. '7 Royal Commission on Canada's Economic Prospects, Final Report, (Ottawa: Queen's Printer, 1958), p. 39-l e f t more opportunity for personal advancement. Returns from 280 foreign controlled subsidiaries indicated that i n many cases the boards of directors ";met infrequently and had l i t t l e authority, particularly i n the case of small firms. The parent organization and a f f i l i a t e s were often represented on such boards, In only 18$ of the cases was the board chairman shown as an active resident i n Canada. A total of 158 presidents or 57$ were resident i n Canada although some were nationals 9 of the company of the a f f i l i a t e . Since 1962 the Corporations, and Labour Union Returns Act has required firms with over $500,000 in revenue or $250,000 in assets to provide financial and ownership data for purposes of economic analysis and public information. The f i r s t annual report disclosed 66.7$ of the direc-tors of 217 firms with assets over $25,000,000 were resident i n Canada. Both the percentage of directors who lived i n Canada and who were Canadian 1 0 citizens increased as the proportion of Canadian ownership increased. Table 11, page 40 of this study indicated a similar relationship for. Canadian-born executives. Subsequent reports omitted figures on the citizenship and residence of the directors and officers. A later amend- • ment blocked access to information on private firms for surveillance purposes. However changes in the Corporations Act made in 1971 require Q John Lindeman and D.E. Armstrong, Policies and Practices of  U.S. Subsidiaries i n Canada (Montreal: Private Planning Association of Canada, 1960), p. 36-37. ^A.E. Safarian, Foreign Ownership of Canadian Industry (Toronto: McGraw-Hill, 1966), p. 57. 10 Corporations and Labour Unions Returns Act. Annual Report, 1962 (Ottawa: Queen's Printer. 1965). p. 55. called CALURA in subsequent footnotes. 11 federally-incorporated private firms to disclose their financial position to the public i n the future. Safarian's stat i s t i c s on the composition and operation of boards of directors of Canadian firms have been used as the basis for Table 5.0. Firms owned i n the United States had slightly higher percentages of' inside directors than, the average for non-resident firms, and fewer resident directors. The average number of meetings per year was greater for a l l Table 50. Composition of Boards of Directors Composition Assets over a million resident- non-resident Over $25 owned owned million Management of company 33.8$ Foreign a f f i l i a t e s Inside directors 33.8$ Other significant owners 22..4 Resident outside • directors 37.6: Others 6.2 Number of directors 806 Percentage resident i n Canada 95 $ Number of firms 90 Average number of directors 8.9 Number of meetings per year 7.0 36.5$ 40.8 77.3$ 2.4 16.8 3.5 1036 55 $ 122 8.4 5.1 34.9$ 37.3 72.2$ 3-7. 19.1 5.0 356 60 $ 32 11 .4 ; 7.6 -Safarin, op. c i t . , p. 271, 314. firms with over $25,000,000 in assets at 7.6 per year. The number of directors was also larger with an average of 11.4 for the bigger firms. CALURA reported 66.7$ of the directors as residents in Canada for that 12 size of firm with an.average size board of 10. The question of Canadianizing top personnel and outside Canadian directors came up again in guidelines for American controlled firms i n 13 1966. However, the question of outside directors was examined by an extensive study of performance using profits, market share and other factors for many large American firms. That author concluded: Outside-type directors seem to be an evolutionary remnant of an era when financier-speculators were prominent i n business development. Under present conditions this type of control seems to be having serious d i f f i c u l t y i n adapting and perhaps i n surviving. Inside-type directorates are far more suited for effective perfor-mance i n modern business endeavor because they provide the competency, in i t i a t i v e and dedication that are so essential to today's intensified competition. In addition, this type of control i s best suited for bargaining and compromising, which assume greater importance as business decision-making becomes more and more democratizedJ4 Safarian had returns on the number of presidents having foreign experience with a f f i l i a t e s . They-range from 12$ for firms with under $1 million in assets to 44$ for firms between $10 and $25 million with an average of 22$. For the next three officers the average was 21$. A l l three percentages were less than the 48$ found for presidents responding 12CALURA, op. c i t . , p. 35-^Financial Post, April 23, 1966, p. 23; August 9, 1966, p. 5. 14 Stanely C. Vance, Boards of Directors: Structure and Performance (Eugene: University of Oregon, 1964), p. 3 . ' 15 Safarian, op. c i t . , p. 58, 60. 100 to this survey despite the fact that the questionnaires were not restricted to foreign-owned firms. P o l i t i c a l pressure for more Canadian influence i n management has continued. In June. 1972, Ontario passed an amendment to i t s Business Corporations Act requiring a l l Ontario-incorporated companies to have a 1 6 majority of resident Canadians on their boards of directors. Gray's report on Foreign Direct Investment in Canada made a mild recommendation that the government appoint some directors to the boards • 1 7 of multinational corporations i n Canada to represent the public interest. Both these proposals tend to ignore the gradual erosion by executive management of the power of the board of directors as the decision making body. It has been reported that some o f f i c i a l s feel that free' movement across the border allows more room for personal advancement. Movements of executives to U.S.A. or other countries was d i f f i c u l t to trace because Canada does not record the occupation'of emigrants. An extensive survey on immigration and emigration of professional manpower sponsored by the Economic Council of Canada indicated a net loss of over four thousand 1 8 managers to the United States between 1958 and 1963. In fact this was the only occupational group for which emigration to the U.S.A. was not counter balanced by immigration from other countries. The author said later: 16 Financial Post, July 22, 1972, p. 5. 1 7 I b i d . 1 8 Louis Parai, Immigration and Emigration of Professional and  Skilled Manpower During the Post-War Period (Ottawa: Queen's Printer, 1965), p. 57. 101 Often, the movement of some of these people i s from one branch plant to another, and such movements are at times a necessary part of the training and organization of the particular firm. In so far as this i s true, the movements of such personnel are essentially a matter of company planning and policy, rather than one of migration motivated by.superior economic opportunitiesJ9 One of the studies done in United States picked up the movement of Canadian executives southward. Although foreign born represented only six percent of the presidents and chairmen compared with 11 . 5 $ of the total population, Newcomber noticed a high representation of Canadians: In fact, the proportion of Canadians i n the 1 9 5 0 group far exceeds the proportion of Canadian-born i n the population. No French Cana-dians are found among the executives The Royal Commission on Bilingualism and Biculturalism noted that 8 . 9 $ of the French Canadians were i n the managerial group as compared with 1 3 . 9 $ . f o r those of British origin. The average for the total labor force i n Canada was 1 0 . 9 $ . The percentages of Italians and Ukrainians i n managerial ranks were even smaller The next section suggests that one of the reasons for lower French-Canadian representation i n executive ranks was the lower level of education achieved and less emphasis on business oriented courses like commerce and engineering. 1 9 *Ibid.. p. 93-2 0 Mabel Newcomber, The Big Business Executive (New York: Columbia University Press, 1 9 6 5 ) , p. 4 2 . 21 Royal Commission on Bilingualism and Biculturalism: Book III, The Work World (Ottawa: Queen's Printer, 1 9 6 9 ) , p. 4 7 -102 EDUCATION Chapter IV has already indicated that the respondents were over eleven times as l i k e l y to have a university education as the male labour force. In the age group under 44 and for firms with over 10,000 employees there were more executives with two degrees than with none. There was also an increasing emphasis on the business administration f i e l d , particularly at the graduate level. The Commission on Bilingualism and Biculturalism presented figures that indicated the French Canadian male had received 7.1 years of school compared with 9-4 for a male of British origin and a Canadian average of 8.4 years. The proportion of people between fifteen and nineteen years of age attending school was lower i n Quebec than any other province i n 22 1961. Two supplementary studies zero i n on the differences i n specific terms: Canadian business organizations today are acutely aware of the dearth of French-Canadians i n higher management positions, and have naturally attempted to discover the reason for i t . One factor which has been suggested as the chief cause for this significant shortage i s the lower level of education attained by the average French Canadian i n comparison to his English Canadian colleague, a factor which has, i t i s proposed, essentially disqualified many otherwise prime candidates among the French Canadian groups for middle and high posts i n Canadian industry . . . Another causal factor proposed has been that the type of educational system to which French Canadians have been exposed is essentially different from that of English Canadians. The French Canadian 'Ibid., p. 28. 103 system prepared members of this ethnic group for professional or theological careers rather than for the demands of business.23 Compared with English-language schools, the French language institutions granted a considerably higher.proportion of their total degrees i n the arts and social sciences. Relatively fewer French •had either the level or the kind of educational qualifications required for managerial and professional functions i n modern industry. This i s particularly true for those disciplines geared to provide entry into business careers: commerce and business administration, sciences and engineering.24 Not only was there the question of f i e l d of study but also of the choice of employment after graduation. Most of the French speaking chartered accountants (90$) went to work for the provincial and municipal governments while 40$ of the English speaking found jobs i n industry and commerce. One quarter of the French engineers went into private industry and 19$ into consulting as compared with 70$ and 1 2 $ of the English speaking graduates .. 25-respectively. Armstrong devoted much of his study to a comparison of salaries for English and French graduates employed i n business, concluding that the French salaries are as good or better than for the English graduates. The author commented optimistically on the French Canadian prospects i n the future: 23 G.A. Auclair and W.H. Read, "A Cross Cultural Study of Indus-t r i a l Leadership" (Royal Commission on Bilingualism and Biculturalism, 1966, Unpublished paper on deposit at the National Library, Ottawa), p. 335. 24 D.E. Armstrong, "Education and Achievement—Corporate Policies and Practices With Respect to Bilingualism and Biculturalism." (Montreal: McGill University, 1966, Unpublished paper on deposit at the National Library, Ottawa), p. 4 7 2 . 2 5 I b i d . , p. 474-Ethnicity or rather lack of fluency i n English may at one time have been something of a disadvantage to the French Canadian, but now that ethnicity per se has become a factor i n corporate practices and policies of firms operating i n Quebec and that i t works to the advantage of the French-Canadian who i s young or who has a good knowledge of English . . . Other things equal, a bilingual French Canadian i s paid a premium for his ethnic origin on today's market. Another study obtained returns from 41 large manufacturing firms employing over 4,000 people each. Discussion of their employment practice also contained some optimistic comments about Francophone trends: The availability of French Canadian university graduates i n those disciplines logically related to business has increased markedly i n the last five years or so . . . Demand for those people i s so . high that French-Canadians can now demand and receive a salary premium. . . . Sample firms are not neglecting the French-language universities in their search for new employees. In fact, for engineering and commerce, the average number of firms v i s i t i n g each French language university ( 2 3 ) i s more than double the average number of firms v i s i t i n g each English language university Auclair and Read did an attitude study of management at three levels of seven large-industrial firms with employment totalling over 250,000. They commented that they found "no significant differences 28 between French and English Canadian management groups." This author has reservations about that conclusion after reviewing some of their data. Ibid., p. 101-102. 27 R.N. Morrison, "Corporate Policies and Practices of Large Manufacturing Firms" (Royal Commission on Bilingualism and Biculturalism, 1966, Unpublished paper on deposit at the National Library, Ottawa), p. 124. Auclair and Read, op. c i t . , p. 4 8 . Analysis of their table on the number of years of education weakened that argument. With the exception of a large French only firm with high education levels, the Francophone averaged about six months less than the English speaking. In nearly a l l groups the French standard deviation was larger. The French constituted 61$ of those at the f i r s t level earning less than $9,000, 46$ at the middle level and 25$ of those earning $18,000 per year. The average years of education increased at each level of supervision. Such figures would imply that the French may be at the lower end of each level and that their educational accomplish-ments were less. However the authors of that B & B study concluded that a change in-attitudes was required rather than more education: They recommended the use of something similar to sensitivity groups introduced by French Canadian executives at the top level. The results of this study o , indicated that French-Canadians as a cultural group, are not ready to assume the responsibilities of top management positions because they are hot sufficiently economic-oriented. They do not identify with the primary goals of business organizations because role conflicts, which the organizational climate engenders, create powerful forces of resistance that cannot be broken. Others,.in recognizing that French Canadians have not changed s u f f i -ciently, suggest that un t i l the French Canadian educational system changes, one should not expect too much from training . . . i t i s our contention that French Canadian managers have not changed enough because • management training programs in industry have not provided the proper climate to induce change i n the desired direction. They have not been aimed at dealing with the role conflicts that the French Canadian manager experiences.30 Porter made few references to fi e l d s of study or universities attended in his book. However, he did mention that almost a l l of the Ibid., p. 146. Ibid., p. 337-8. engineers and scientists i n his economic el i t e were university graduates in those f i e l d s . McGill was fiisb choice for the training of 35.6$ of the Canadian born with the University of Toronto i n second place with 29.6$.^1 In this study, the latter was named most frequently with 21$ and McGill next with about 16$. Smaller percentages came from Ontario private colleges like McMaster, Queens and Western Ontario, and the prairie provin-c i a l universities. Another Canadian study covered 591 executives i n the Federal Public 32 Service. They had a higher level of education than the Canadian business leaders, with 81$ having at least one university degree, 30$ with a masters and 14$ with Ph.D.'s. The University of Toronto granted the highest percentage of degrees with 18.4$, lower than found i n this study. Armstrong reported an analysis of the education levels achieved by executives according to the number of employees in a firm: for those with 50-500 employees, 38$ of the executives had university degrees; 52$ i n the middle-sized firm and 68$ of those with over 1000 employees. Size influenced the proportion of executives with university degrees even more decisively than i n this study. In the last chapter i t was noted that the Quebec born were under-represented among the top executives, even i n their own province. Belanger noted that 78$ of his English executives were born outside Quebec, but 31 Porter, on. c i t . , p. 277-32 Phil Chartrand and Ken Pond, "Executive Career Paths i n the Public Service of Canada"•(The Canadian Personnel and Industrial Relations  Journal, Vol. 16, No. 3, May 1969), p. 21 . 33 •Armstrong, op. c i t . , p. 111. only 7$ of his French Canadians:.^ Education played a part i n the import of anglophones: only 67.6% of his French managers were university graduates; of the English, the percentages with university degrees were 12.6% of those born i n Quebec; 75$ from Ontario, 79$ from the rest, of Canada and 83$ of the immigrants. Aside from those facts, he made no further reference to the 29$ of his so-called English-Canadians that were born outside Canada. It would appear to this author that university training influenced the movement of many of the potential executives to Montreal. This section has followed the question of birthplace with a discussion of ethnic origin and the education of .'manager's with specific references to Canadian research i n this area. It would now. be approp-riate to extend the comparison of the mobility study to others. Table 51 compared the educational levels achieved by Belanger's 35 respondents, those of this study and those of 0'Donovan's executives and 36 lower managers. The education acquired by the anglophone and Canadian executives was similar to that of 0'Donovan's executives. About 19$ of the French Canadian and lower managers had incomplete high school. Those with university degrees were closer to the executive level than the lower managers. This would tie i n with the large standard deviation for the education level of French managers already noted in the Auclair and Read Study. Because of the lower educational levels achieved i n Quebec and 34 Be lander, op. c i t . , p. 87. 3 5 I b i d . . p. 87-T. O'Donovan, "Differential Extent of Opportunity Among Execu-tives and Lower Managers" (Academy of Management Journal, August 1962), p. 145. 108 Canada, the representation ratios for university graduates among the respon-dents as compared with the general population were even greater than found by 0'Donovan: the anglophone leaders i n Quebec were 13-1 times as l i k e l y to have graduated from university, the French, 10.5 times; the Canadian executive, 11.6 times; 0'Donovan's executive, 7.8; and his lower manager, 2.8 times. The advantage given by a university degree was even greater for seeking executive promotion i n Canada than in the United States. Table 51 . Education Levels of Quebec and Canadian Executives Compared With 0'Donovan's Executives and Lower Managers Educational level Quebec French Exec's a English Cdn. 0'Donovan Exe c. Lower Mgr. Less than complete high school 19-8$ 4.6$ 6$ 3$ 19$ High school graduate 12.6 16.0 14 7 22 Some ...college 13.2 13.7 14 2 1 ... ••• 34 . College graduate 54.5 65.7 65 69 26 L. Belanger, "Occupational Mobility of French and English Canadian Business Leaders in the Province of Quebec" (Unpublished Ph.D. thesis, Michigan State University, 1967), p. 87. T. 0'Donovan, "Differential Extent of Opportunity Among Executives and Lower Managers" (Academy of Management Journal, August 1962), p. 145-Another area where Belanger's respondents resembled 0'Donovan's . lower managers was i n the response rate. For a l l four firms, the latter's response rate was significantly lower for his lower managers than his 1 0 9 37 executives. Only 28$ of Belanger's French Canadians and 36$ of his English Canadians returned their questionnaires, whereas the response rate for this survey and Warner's business leaders was about half. Belanger's French respondents had a lower status than the anglophones: only 21 .2$ of the French managers were employed by firms with over $50,000,000 i n assets, the minimum i n i t i a l l y set for this research, compared with 43$ of the English. In the group between $10 and $49 million, there were another 35$ and 27$ respectively. The.Economic Council of Canada has commented on the lower educat-ional achievements of the managerial.group i n Canada: There i s evidence from the 1961 census of Canada and the 1960 census of United States to suggest that the educational attainment of the owner and management group i s very significantly lower i n Canada than i n the United States. The average differences between the two countries i n this regard appear to be wider than i n almost a l l other major categories of the labour force. Furthermore, inter-views undertaken by members of our staff indicate that there i s increasing recognition and concern about the need for higher educat-ional levels for future management in Canadian business firms. Table 52 indicated the educational levels found i n four different mobility studies As the four questionnaires were completed over a fifteen year period, the year of return was also shown. A ratio of propor-tional representation was also indicated along with the census year used for i t s calculation. The three American studies indicated that post Ibid., p. 140. Belanger, op. ext.. p. 104. 39 / Economic Council of Canada, Second Annual Review (Ottawa: Queen's Printer, 1965), p. 62. ^°W.L. Warner and James C. Abbeglen, Occupational Mobility in  American Business and Industry (Minneapolis: University of Minnesota Press, 1955), p. 100; W.L. Warner, et a l . , The American Federal Executive (New Haven: Yale University Press, 1963), p. 354, 355; Carlos Jose Malferrari, The American Executive Overseas, an External Profile (Unpublished Ph.D. thesis, Michigan State University, 1965), p. 57-1 1 0 secondary education has now become a virtual prerequisite for entry into and administrative career i n the United States. Despite a large propor-tion of American born in the respondents, the Canadian level would appear about twelve years.behind.United States. Because the overall level of education was lower, the advantage of a uriversity degree was even greater i n Canadian business. One of the problems i n assessing a comparison such as that i n Table 52 was the different methods by which the executives were selected. The business leaders and Canadian executives were executives whose names and firms were available i n various business directories and the question-naires were mailed direct to them. The Federal executives represented a l l the employees of the United States government at a grade level of GS-14 and higher. With the exception of certain classified military personnel, the questionnaires were also mailed directly to the executives. Distribution to the overseas executives was made by fifty-two cooperating multinational corporations. Hence that research had the least control over the selection of the population studied. Furthermore, a l l the responses from non-U.S. born were eliminated from that analysis because there were no comparable statistics available on such respondents. Such selection would tend to favor men who were on the way up i n the organi-zation rather than those who had already achieved prominence. This d i f f -erence i n methodology may account for the younger age and higher educat-ional achievements of the overseas executives. The average age of the respondents was 5 2 . 6 years compared to 5 3 . 7 and 4 9 - 4 i n the Warner studies and 4 0 . 7 i n the Michigan study. 111 Table 52. Education Levels of United States and Canadian Executives Education Level a Business Leaders fo R* b Federal Executive fo R Overseas Executive $ R Canadian Executive fo R Incomplete high school 15 .3 1 .06 0 .02 6 .2 High school graduate 11 .7 4 .2 3 .1 14 1 -6 Some college 19 3.2 14 2.0 17 1 .7 14 1 .4 College graduate 57 8.1 81 9.0 81 9.0 65 11.6 Average age 53.7 49-4 40.3 52.6 Year returned 1952 1959 1963 1 967 '" Base year of ratio 1950 1957 1960 1961 *R - ratio of proportional representation V L . Warner and James C. Abbeglen, Occupational Mobility i n  American Business and Industry (Minneapolis: University of Minnesota Press, 1955), p. 100. W.L. Warner et a l . , The American Federal Executive (New Haven: Yale University Press, 1963), p. 359-Carlos Jose Malferrari, "The American Executive Overseas, an External  Profile (Unpublished Ph.D. thesis, Michigan State University, 1965), p. 57. Respondents i n this survey were more highly educated with 79*1$ having attended university than the 62.7$ indicated i n "Portrait of a 41 Canadian Executive . The sample for that s t a t i s t i c a l study was drawn from the circulation f i l e of the magazine i n which i t was published. . .. Its .respondents included executives lower on a firm's hierarchy with, greater emphasis on those i n service, r e t a i l and wholesale and less on "Portrait of the Canadian Executive," Executive, The Magazine of  Canada's Decision Makers'" (Southam Business Publications, Vol. 10, 1968, March), p. 49-112 industry and finance than found i n this study. Clements based his book on 670 interviews i n 28 industrial firms. Consequently his tabulations covered a more restricted sample, but went further down the organization structure to include lower level managers. However, i t did give some background on managers i n England which was not available elsewhere. University, graduates represented 27$ of the total British managers, but 68$ of those at upper l e v e l s , ^ 2 so his results indicated a similar emphasis on higher education for those at the top level of management. Because there was no comparison between the educational levels and census figures for the British ELes, i t could not be determined whether the low level of education found in British-born Canadian execu-tives was typical of a l l managers born i n the British Isles. Gonzalez observed i n his book on executives born i n U.S.A. and serving i n foreign countries that those i n Canada had the highest propor-tion of university graduates of any area at 89$ which was higher than the 75$ shown i n Table 24, page 54. The common market countries were next with 86$. Latin America, the Middle East and Far East a l l had 83$. Other European countries had 81$, Japan 76$ and other areas 66$.^ Table 21 , page 49 gave an indication of the growing importance of university studies i n business among the younger executives. This was a change from what Porter suggested for his business elit e i n Canada: "comparatively few were trained i n commerce and administration".^ It should be remembered that the original data on which his conclusions were based were accumulated i n 1953 and that his e l i t e were directors, not f u l l -42 Clements, op. c i t . , p. 175. 43 44 Gonzalez and Hegandhi, op. c i t . , p. 62. Porter, op. c i t . , p. 277-113 time managers. Many changes have taken place in university programmes and the business leaders since. Over one-fifth of the respondents to a Canadian magazine survey indicated that their university degrees were in science, and only 4-6$ held an MBA. The main courses studied were engineering 17$, economics 16$, then business administration 1 0$, accounting and finance 8$ and commerce n> 45 l/o. If the last three or four fields had been combined, the total would have exceeded that of engineering and other sciences. Gould showed a similar trend towards increased education among younger business executives, especially at the post graduate l e v e l , ^ as was found for the Canadian executives i n Tables 1 9' and 21 , pages 48 and 49 respectively. However, he may have erred i n separating tech-nical degrees from law and a l l other degrees in his analysis and concluding that "within another decade or two, the majority of the country's 'captains 47 of industry' w i l l be men who speak the language of science and engineering." Armstrong's research has indicated the value of management education. He wrote that education i n this f i e l d has been badly neglected i n Canada, compared to the United States. By the time they are i n their 50's, engineers i n business i n Ontario and Quebec with MBA's earn about $9,000 per year more than the same kind of engineers with Phi.'Ds.'s(also i n business) despite the fact that the Ph.D.'s have more years of formal education. . . . 45 "Portrait of a Canadian President", Executive, the Magazine for  Canada's Decision Makers (Southam Business Publications, Vol. X, Ho. 5> May 1968), p. 54. 4 6 J a y M. Gould, The Technical E l i t e (New York: August M. Kelley, 1966), p. 165. 47 "Technicians moving i n at the top," Business Week, June 12, 1965, p. 118. 1 1 4 The ratio of current output of graduates i n the United States and Canada per 1000 of population i s somewhere between three to four to one at the bachelor level, seven to one at the master level, and virtually i n f i n i t y at the level of the Ph.D.48 The returns from top business executives i n Canada indicated a strong trend towards management education, especially among the younger executives. An early article in Fortune had noticed that the proportion of executives who graduated from science and engineering declined from 45$ to 2 9 $ for those under 50 while those from business and economics increased from 31$ to 38$.^ Similarly Malferrari found a preference among his overseas executives for business administration at 28$ compared to 17$ for engineering. However the f i r s t preference of his respondents went to a l i b e r a l arts education with 45$. It could be that languages and social sciences were more valuable to the overseas executives than others. Without giving any s t a t i s t i c a l evidence or references for proof, Jennings had some definite recommendations about fields of study for the upward mobile: Today, 75$ of the most mobile men have bachelor's degrees in engineering or science and master's degrees i n business admini-stration. Men with this combination of degrees are out-distancing any other combination.^ '^D.E. Armstrong, "The Manager of the Future."(Pulp and Paper  Magazine of Canada, May 1 9 6 7 ) . ^ For tune Editors, Executive Life (Garden City, H.Y.: Doubleday, 1 9 5 6 ) , p. 34-^ M a l f e r r a r i , op. c i t . , p. 112. 51 / E.E. Jennings, The Mobile Manager (East Lansing, Michigan State University, 1 9 6 7 ) , ' p . 2 1 . 115 Richman had a chapter on management development i n the United States. He referred to four separate studies to provide evidence of a trend toward more and probably bettero education among the business managerial class, particularly at higher levels. While he admitted that the proportions of top level managers who had majored i n business admini-stration were small, he explained that formal courses i n business were relatively new, so graduates had not yet had enough time to reach the top levels. He described graduate training i n business and management as 52 emerging as a major force i n America only i n the past several decades. Unfortunately Warner's study on business executives did not discuss f i e l d of study so his major work was not available for comparison. Much the same problem was found i n Belanger's study of Quebec business leaders. However other research has reinforced the findings of this study—an increased emphasis on courses i n management and administration. The section on education started with a discussion of education levels i n Quebec. It may be appropriate to end with some comments on education fields i n that province. Armstrong reported less emphasis on commerce courses i n the French universities of Quebec than i n the English. Their orientation was towards the classics and l i b e r a l arts. Generally he found a lower ranking for graduates from church universities on the Admission Test for Graduate 53 Study i n Business. If there i s concern about American business leadership i n Canada 5 2 Barry M. Richman, Management Development and Education in the  Soviet Union (East Lansing: Michigan State University, 1 9 6 7 )» p. 3 2 . 5 3 Armstrong, op. c i t . , p. 51 • or about English speaking executives i n Quebec, a possible solution would be to increase the number of university courses with business orientations. University training, particularly i n business, was where the gaps between the different ethnic or national origins appeared to be the widest. SOCIAL ORIGINS Discovering the social origin of the Canadian executive and comparing i t with that of other executives were among the objectives stated for this study i n the f i r s t chapter. This section relates the occupational background discussed i n the last chapter to other mobility studies. The next research referred to served as a convenient tie between educational and occupational backgrounds even though a direct comparison was not possible. Because Clements accumulated his data from personal interviews i n a limited number of firms and because the occupational classifications were different, i t was not possible to make side-by-sideccomparisons 54 of his results with those of mobility studies done on the Warner format. Nevertheless Table 53 suggested great over-representation of executive and professional fathers and much under-representation of manual and routine occupations. The four key groups that provided 87$ of the British managers represented only 30$ of the Br i t i s h males i n those classes. The remaining 13$ had fathers i n routine or manual occupations, which represented 70$ of the British males. Unfortunately, he did not give 54 Clements, op. c i t . , p. 177. 117 the census year from which he took the percentages for the male labour force • Table 5 3 . Occupational and Educational Background of British Managers'" Fa ther 1s o c cupa t i on Males In Represent- University Managers Class ation ratio graduates Professional and high administrative Managerial and executive Higher inspectional and '" "supervisory Lower inspectional and supervisory Skilled manual and routine non-manual Semi-skilled and unskilled Totals 26 12 15 10 10 13 10 2 9 1 0 0 % 11 . 3 5.2 1 .2 1 .1 5 .25 • 17 1 . 0 0 4 7 $ 3 5 3 7 1 5 8 2 5 ^ R.V. Clements, Managers, a Study of Their Careers i n Industry (London: Allen & Unwin, 1 9 5 7 ) , Table 1 0 , p. 1 7 7 -The f i r s t three groups also had larger percentages of university graduates than those of a l l British males or of the other managers. The figures.suggested that university graduates often became managers in British industry, although the overall proportion of university graduates was lower. than that, of any other study of business leaders referred to» That., may have some relationship to the comparatively low percentage of Canadian executives who were born i n the British Isles and had university degrees. 118 If the managers of Clements' study were typical of the British Isles, the ratios shown indicated a class structure more r i g i d than that found by any other study of managers referred to. Table 31, page 62 gave information on the occupations of the ante-cedents of the top Canadian executives. It indicated that the respondent was more l i k e l y to come from a managerial or professional background and unlikely to have a father from labouring or farming ranks although i t was more possible for his grandfather to have worked i n those occupations. Table 54 provided a comparison of the mobility of the Canadian respondents with that of two studies done on American leaders over two generations and one on Quebec business leaders. Unfortunately the latter's questionnaire did not have an item on the grandfather's occupation, so the trend into business leadership from farming and labouring ranks evident i n the other three studies could not be confirmed from data available on the Quebec managers. Each of the other studies showed considerable movement into executive rank between grandfather and father. The percentages of Canadian executives who indicated that the father was a major executive, big business owner or professional were the highest of any. The overseas executives showed the highest percentage with antece-dents who were small business owners or foremen, and the smallest percentage with antecedents from farming backgrounds. Quebec anglophone leaders were similar to the Canadian executives except that more came from profes-sional and white collar fathers and less from major executive ranks. Quebec francophones had fewer fathers from big business and professional ranks, but the largest proportion of any whose fathers were labourers or small business owners. This author has suggested that the francophone 1 1 9 Table 54. Mobility into Business Leadership over Three Generations Compared Warner Occupation Ga pe Overseas G F Canadian G F Quebec Major executive or big business owner 12$ 31$ 18$ 32$ 13$ 32$ 27$ 19? Small business owner . .or foreman 20 21 28 27 2 3 . 2 3 22 . .28 Professional 10 14 13 15 12 16 17 11 White collar 2 8 11 13 9 12 15 11 Parmer 35 9 16 2 31 6 5 ' " 4 Labourer 1 9 15 13 11 11 9 10 22 Other 2 2 1 2 4 5 V L . Warner and James C. Abbeglen, Occupational Mobility i n  American Business and Industry (Minneapolis: University of Minnesota Press, 1 9 5 5 ) , p. 5 4 -^Carlos J. Malferrari, "The American Executive Overseas: an External Profile" (Unpublished Ph.D. dissertation, Michigan State University, 1 9 6 5 ) , p. 5 1 . Laurent Belanger, "Occupational Mobility of French and English Canadian Business Leaders i n the Province of Quebec" (unpublished Ph.D. thesis, Michigan State University, 1 9 6 7 ) , p. 5 8 . G^ - grandfather's occupation. e F - father's occupation. f EF - Anglophone's father's occupation. FP - Francophone's father's occupation. 120 leaders were from smaller firms or were lower in business organizations. Each of the authors on mobility included on the last table calcu-lated occupational representation ratios for the fathers of the business leaders based on the percentages shown i n relation to the census year nearest to the average year of birth for the executive being studied. In addition to those ratios, Table 55 showed the results from two other 55 56 groups of administrators; federal executives and college presidents. Since a university degree would be a prerequisite for becoming the top administrator of a post-secondary institution, that study was not used in comparing educational levels. However, such calculations were more valid when discussing occupational mobility. The ratios were arranged to show the academic presidents f i r s t , and next the federal executives. Then the four types of business executives were grouped together for internal comparison and contrast with the other two administrators. As might be expected, the business leaders were more l i k e l y to have a father already i n the managerial occupation. College presidents were most l i k e l y to have their fathers i n the professions of teaching 57 or clergy. Although some federal executives came from labouring fathers, the elites were unlikely to come from farming, labour or white collar groups. 55 / W.L. Warner et a l , The American Federal Executive (New Haven: Yale University Press, 1963), p. 322. 56 Michael R. Ferrari, "Origins and Careers of American Business Government and Academic E l i t e s " (California Management Review, Vol. XII, No. 4-, Summer 1970), p. 28. 5 7 I b i d . Table 55• Occupational Representation Ratios of Fathers Compared College 3 , Federal Business 0 Overseas Canadian" Quebec Occupation of Father President Exec. Leader Exec. Exec. English French Major executive and Big Business Owner 2.0 5.7 7.8 3.8 ) ) ) 1 .4 ) 8.5 6.3 8.5 Small business owner and f i r s t level supervision 2.3 2.2 2.0 Professional 6.2 4.8 3.5 2.5 4.5 2.3 3.1 White collar .4 .8 .8 1 .0 .9 .7 1 .3 Farmer .7 • 9 •4 .1 .2 .5 .3 Labourer .6 1 .1 .5 ..4 .6 .2 .2 Census base 1940 1930 1920 1930 1931 1931 1931 aMichael R. Ferrari, "Origins and Careers of American Business Government and Academic E l i t s . " California Management Review. Vol. XII, No. 4, Summer 1970, p. 28. W^.L. Warner et a l , The American Federal Executive (New Haven: Yale University Press, 1963), p. 322. CW.L. Warner and J.C. Abegglen, Occupational Mobility i n American Business and Industry (Minne- . apolis: University of Minnesota Press, 1955), p. 41. ^C.J. Malferrari, "The American Executive Overseas, an External Profile"(Unpublished Ph.D. thesis, Michigan State University, 1963), p. 47. eLaurent Belanger, "Occupational Mobility of French and English Business Leaders i n the Province of Quebec"(Unpublished Ph.D. thesis, Michigan State University, 1967), p rv> The extremes were found i n the representation of the Canadian executive, ranging from .2 for labour to 8.5 for the supervisor, owner and executive. The difference would he even greater i f the small owner and foreman were separated on the Canadian census. The Quebec business leaders were not too far behind with ratios ranging from .2 to 8.5 for the francophone and .2 to 6.2 for the anglo-phone for the same occupational groups. Belanger's results reinforced 58 the findings of this author. One can only conclude that Canadian busi-ness was less l i k e l y to recruit outside the families of the business el i t e , particularly from farming and labouring backgrounds. American business leaders showed more vertical mobility than the Canadian executives. Belanger's Quebec business leaders also indicated more upward movement than did those responding to this survey, and the French more so than the English. He concluded: "Sons of men i n lower occupational strata are under-represented in the United States as well as i n the English and French e l i t e of Quebec. However the French-Canadian occupational structure appears more open than the English Canadian, since French-Canadian c l e r i c a l workers and foremen supply more than their share of business execu-tives. . . . occupational origin i s more important than ethnicity i n opening the road to the summit of business enterprises."59 For a number of reasons i t was d i f f i c u l t to make direct compari-sons with Porter's economic e l i t e . His work emphasized corporate direc-tors who might have been outsiders brought i n to give advice i n the fields of finance or law. A number of such people declined to answer the question naire i n this survey because they did not consider themselves business 58 Belanger, op. c i t . , p. 61 . 59 ^ Belanger, op. c i t . , p. 69-executives. Also this survey used a questionnaire approach whereas Porter used library research to obtain background information on his executives. However Porter mentioned a high degree of family continuity within the management of particular corporationsComparisons with other mobility studies indicated that such trends were not as powerful as i n previous studies. However i t was s t i l l true that the number of men i n the economic e l i t e whose fathers were also i n i t , was much greater than i t would.be on a chance basis. Porter showed with some accuracy that at least a third of his economic elit e came from families already 61 established i n the upper classes. Tables 53 and 54, pages 117 and 119 respectively, showed a higher percentage from that class for Canadian executives than for any of the others. It would indicate less mobility i n Canada than i n United States. Porter suggested further that there had been a decline in upward 62 mobility i n Canada. When the findings of this thesis were placed along-side those of Warner and the pioneering study of Taussig and Joslyn in Table 56 they appeared to suggest a continuation of the same trends. There were further declines in the percentages of fathers from farm, owner and major executive ranks. Percentages of white collar workers, professionals, f i r s t line supervisors and minor executives increased over the forty years . However some of these changes may have been the resultsof changes taking place i n the labour force. It i s common knowledge that farming 6 0Porter, op. c i t . , p. 274- 6 1 Ibid., p. 291 CO Ibid., p. 294. now employs a smaller proportion of the labour force than i n previous years. Hence i t was desirable to extend that comparison to figures for the entire labour force to make valid conclusions about trends. Since there was no early Canadian study on business executives done on the Warner approach, the comparison was made with earlier American studies. Table 56. Occupations of Fathers of Business Leaders the 1928, 1952 and Canadian Occupation of father 1928a Leader 1952b Leader Canadian Executive Farmer 12$ 9$ 6% Hourly worker 11 15 9 Clerk, Salesman 5 8 12 Owner of business 34 26 22 First and middle line executive 7 11 18 Major executive 17 15 14 Professional 13 14 17 Other .1! 2 2 F.W. Taussig and C.S. Joslyn, American York, 1932) as quoted i n "b". Business Leaders (New bW.L. Warner and J.C. Abegglen, Occupational Mobility i n American Business and Industry (Minneapolis: University of Minnesota Press, The comparison of occupational mobility ratios over the years in Table 57.shows increased mobility for only two occupations i n Canada: white collar and farming. Only the latter was significant. The Canadian 125 ratio for the managerial f i e l d was closer to the 1928 study, which showed a high degree of over-representation i n that category. For the profes-sional group, Canadian over-representation was higher than either of the earlier studies. Representation of the labouring group was low i n a l l three periods. Canadian figures for the two top classes were closer to the 1928 study than the 1952 one. Table 57. Occupational Representation Over the Years Occupation of Father American3, 1928 1952 Canadian 1967 Managerial 9.7 4-7 8.5 Professional 4.3 3-5 4.5 White collar .71 .80 .85 Farming •32 • 33 .56 ' ' Hourly worker ,'32 ,-33 .24 Census base 1 900 1920 1 930 £1 W.L. Warner and J.C. University of Minnesota Press Abegglen, , 1 955), P Occupational Mobility (Minneapolis: . 48. Because so many of the Canadian executives and their ancestors were born outside Canada, another approach was used to compare mobility , into executive rank that would ignore the nation of birth. In Chapter IV, ratios of occupational s t a b i l i t y and movement were calculated for the executive's father i n relation to the grandfather's occupation. Table.58 showed the comparison of these ratios with other mobility studies. The selected occupations were li s t e d according to the amount of occupational 126 Table 58. Ratios of Occupational Stability and Movement Compared Selected Occupations of Fathers Canadian 1928a 1952a Overseas Federal 0 Ratios of Occupational Stability Major executive 4.46 4.17 5.60 2.5 5.72 Farmer 3.71 2.32 2.40 4.9 1 .96 Labourer 2.59 4.08 2.74 3.5 2.31" Professional 2.25 3.17 2.70 2.1 2.50 White collar 1 .93 3.20 2.00 2.0 2.00 Business owner 1 .63 1 .69 1 .56 1 .7 1 .94 Average 2.68 3.10 2.50 2.8 2.74 Average Ratios Out of Occupation Major executive .82 .57 .40 • 54 .64 Farmer .72 .81 .86 .82 .79 Labourer .88 .60 .65 .66 .66 Professional • 78 .65 .70 .61 .76 White collar .82 .68 .67 .66 .94 Business owner .74 .60 -74 .82 .79 Average .76 .62 .67 •84 • 77 Proportional representation = 1 .00 W.L. Warner and James C. Abbeglen, Occupational Mobility (Minne-apolis: University of Minnesota Press, 1955), p. 65-^C.J. Malferrari, "The American Executive Overseas, an External Profile " (Unpublished Ph.D. Thesis, Michigan State University, 1965), p. 147. °W.L. Warner et a l , The American Federal Executive (New Haven: Yale University Press, 1963), p. 74. s t a b i l i t y shown for.the fathers of the Canadian executives. For each study the ratio for the occupation showing the most s t a b i l i t y has been underlined. A l l the ratios of 1952 were closer to proportional-:—i .e. one — than those of 1928. Hence they supported Warner's conclusion that there 63 had been an increase i n mobility during the generation. The later study of Federal executives showed an even higher ratio of 5.72 for the fathers 64 of executive rank that continued in their fathers' occupation. There was no comment on the effect that might have on the earlier conclusion. Again there was a high degree of continuity shown by the ancestors of the Canadian executive. The ratio of 4-46 was the highest shown by any of the studies of business leadership. Compared to the low mobility out of executive ranks shown by other studies, the Canadian ratio appeared high. If the relatively high number of children shown for the Canadian executives has extended over several past generations, the f e r t i l i t y rate could be forcing some sons out of executive ranks. In Canada increasing foreign ownership could also be a factor. Looking back on Tables 34 and 35, pages 66 and 68 respectively, where these ratios were f i r s t illustrated might suggest another explanation. Wo executive sons moved into farming or labouring ranks according to the responses to this survey, so no ratios could be calculated for those fi e l d s . Another contributing factor was the relatively high movement into the two neighboring classes of professional and of supervision and Warner and Abegglen, op. c i t . , pp. 25, 35, 69. ^Warner et a l , op. c i t . , p. 74. 128 middle.':* executive. Unfortunately, Belanger did not include a grandfather item on his questionnaire so no check was available from his research. The correct explanation may await another mobility study of executive ranks in Canada. The occupational continuity shown for farming i n Canada was the highest of the studies shown. It was associated with the lowest movement out of farming. It could be that the trend to urbanization was later affecting Canada than the United States. Hourly workers came next i n terms of continuity, but ranked second i n three other studies. They also showed low means for movement out of the f i e l d except for the Canadian study. The census figures indicated about 40$ of the male work force i n this group. The small number of Canadian respon-dents with grandfathers i n this f i e l d (42) may have introduced some bias in the results. For the Canadian executives, the ancestors in the professions showed significant mobility into management ranks and l i t t l e into other occupations. For the white collared workers, there appears to have been a decline i n mobility since the 1 928 questionnaire. Since census figures show this to be a growing f i e l d of employment, such a trend appeared reasonable. For a l l studies the ratio of continuity was the lowest for the business owner. This could be associated with the growth of corporate enterprise by incorporation of small firms and outright purchase. The average ratios for movement out of that f i e l d varied, but there appeared to be a trend towards more proportional representation i n the United States. In summary, the antecedents of the Canadian executive showed more 129 continuity i n managerial roles and farming than most of the other studies. Although there were differences i n other occupations, they were not as pronounced. A l l five studies showed the lowest continuity for the busi-ness owner. Generally speaking there was less mobility into executive rank i n Canada than was found i n comparable studies done recently i n the United States. It would now be appropriate to look at how the business executive progressed i n his career. CAREER PROGRESS Comparisons of career sequences found i n four different mobility studies of business leaders were shown on Table 59. The largest percentages of business leaders started i n white collar ranks followed by labouring and professional f i e l d s . For Warner's study and Belanger's, the professions were second and labourers third. Labouring was the starting f i e l d named, second most frequently by both the overseas and Canadian executive. To shorten the table, labour and farm occupations were combined, then dropped from the fifteen year point because there was less than half a per cent l e f t i n that group. Belanger's study did not show separate figures for business owners or military, so the spaces were l e f t blank on his tables. Other occupations and no responses were also l e f t blank for overseas executives because the information was not reported i n the book published on those executives. Over a third of the leaders had already started to move up the ladder before they were employed five years. Many had l e f t white collar and labour ranks, although the French leader of Quebec had made less progress 130 Table 59- Comparisons of Business Leaders' Career Sequences a b Quebec Occupation Warner Overseas Canadian English French percentages First Occupation Major executive 1 0 0 0 0 Minor executive 10 7 4 11 11 Professional 24 5 13 . 28 34 White collar 43 53 52 44 36 Business owner 1 1 2 Labourer 15 23 17 14 11 Military 2 11 9 Other 5 3 3 2 No response 3 2 0 5 Years Later Major executive 6 1 1 5 11 Minor "executive 39 50 41 36 15 Professional 21 6 12 24 27 White collar 25 27 28 25 37 Business owner 2 4 5 Labourer 3 6 4 '3 6 Military 2 6 5 '( Other 2 4 7 4 No response 4 6 4 10 Years Later Major executive 26 10 12 31 ' 34 Minor executive 46 74 66 42 42 Professional 14 3 9 14 17 White collar 8 9 6 7 4 Business owner 3 2 4 Labourer 1 1 0 1 0 Military 1 1 2 Other 1 1 5 3 No response 6 8 7 (Continued) 131 Table 59. Comparisons of Business Leaders' Career Sequences (Continued) Occupation Warner8, Overseas^ Canadian Q Quebec English French percentages 15 Years Later Major executive 57 32 52 62 64 Minor.executive 26 63 37 24 15 . Professional 10 2 6 9 18 White collar 3 2 2 2 0 Business owner 3 0 2 Military 1 1 1 Other"" 0 0 3 3 No response 10 9 1 1 1 3 V L . Warner and J . C . Abegglen, Occupational Mobility i n American  Business and Industry (Minneapolis: University of Minnesota Press, 1955)> p...-:116. bR.F. Gonzalez and A.R. Negandhi, The U.S. Overseas Executive, Orientations and Career Patterns (East Lanrs-ing: Michigan State University, 1967)., p. 39. ' Laurent Belanger, "Occupational Mobility of French and English Canadian Business Leaders i n the Province of Quebec" (Unpublished Ph.D. thesis',' Michigan State University, 1967), p. 97-during the f i r s t five years. Nevertheless, the franchophone made up for slow...progress, and had the.largest percentage at major executive rank after ten years. At a l l times, the francophone showed the largest percentage of professionals. Whether this reflects their training or the esteem.'; with which that f i e l d i s regarded by the French Canadian would be a matter...of conjecture without further research. The French respondents also showed the largest percentage at the 132 major executive rank at each point after starting employment. This could he a question of terminology i n translation or the method of grouping occupational classifications used by the researcher. Belanger's English-Canadians also showed a higher percentage of responses for the major executive position at the ten and 1 5 year point. Belanger's results appear to contradict the statement made i n the highlights mailed out for this thesis that "A comparison with the Warner study indicates that career progress (for the Canadian executives) was not as rapid as for the American business leader." That conclusion was based on the lower percentages of Canadian executives classifying themselves as major executives at the five and ten year points on the career progress question. Belanger's research was not located un t i l after the highlights were mailed. Besides the possibility of interpretation mentioned, Belanger's Quebec Business leaders came from smaller firms than the Canadian respon-dents. Many of his respondents came from firms too small to be included i n this analysis. Less than half his French managers and just over half his English respondents i n Quebec came from firms large enough to meet the size c r i t e r i a established for this thesis. One of the things to be noted i n the career sequences was the virtual disappearance of the independent entrepreneur. Few of the business leaders achieved their prominence by owning their own business. The high point for the Canadian executive was five percent. It was even lower for the American business leaders. Bewcomber has compiled data over half a century that documents the disappearance of the entrepreneur. The percentage of entrepreneurs 1 3 3 among her business leaders shrank from 3 1 $ i n 1 9 0 0 to 1 0 $ i n 1 9 5 0 . Over the same period the capitalists, those who inherited or bought existing businesses, shrank from 1 2 . 5 $ to 4 . 9 $ . ^ Different authors have used various approaches to link educational levels and career progress. The career sequences used i n the last chapter and by Warner to relate status and educational levels were patterned after Taussig and Joslyn's pioneering work. Newcomber related the age at which the present position was achieved to educational level and found that educa-6 5 tion was a short cut to promotion. Malferrari phrased one of his questions to get the age at which his overseas executives assumed positions at d i f f e r -ent levels of the hierarchy. He was then able to determine the average age at which the respondents reached each position i n relation to the level of education. He found education reduced the age at which the executive reached 6 6 each level of responsibility. Belanger asked the Quebec business leaders at what age they assumed their present position. This was then converted to average ages for compari-son with other items. Belanger found that education speeded progress through the levels of business organization.^ Regardless of the father's occupation, the francophone achieved his present position an average of 6 . 2 years earlier than the anglophone. In both ethnic groups the son of a major executive or large business owner reached his present position soonest. In the case of the English, i t was the labourer's son who took the longest to reach his present position; but ^Mable Hewcomber, op. c i t . , p. 90. ^ I b i d . , p. 77-^M a l f e r r a r i , oy. c i t . , p. 40. ^Belanger, op. c i t . , p. 77-1 3 4 the professional's son was the slowest among the French. Those two occupations provided the widest ranges between the founding nationalities of Canada. The French of professional origin "arrived" only two years before the English, while the French of labouring origin achieved his 69 present position 9 . 7 years before his English counterpart. While i t took both ethnic groups longer to reach their present positions in large firms than i n small, the time advantage for the franco-70 phone to achieve his present position was greater i n large firms. It would suggest that the larger firm may be more conscious of Quebec national feeling and may be trying to do something about encouraging French manage-ment. Unfortunately the number of respondents or the level of significance were not shown, so i t may not be correct to do more than conjecture. Executives i n Canada's Public Service showed higher levels of edu-cation at the more senior levels, something which did not apply to the top level of Canadian business executives. Although the deputy minister or department head was older, he spent less time at the team leader position 71 before moving into management levels. A trend towards younger appoint-ments to executive ranks did not appear among the government executives. Another interesting observation from that study was that transfers between departments aided upward progress, but service outside the govern-ment tended to slow down progress i n relation to the time spent i n such 7 2 areas. Interfirm movement was something that could be readily compared ^Belanger, op. c i t . , p. 1 1 4 . ^ I b i d . , p. 1 2 3 , 71 72 Chartrand and Pond, op. c i t . , p. 2 0 . Ibid., p. 2 5 . 135 between the various mobility studies. Unfortunately, none of the research tried to relate such moves directly to career progress i n the same way that i t was done i n the report on the public service. Table 60 showed a comparison of such moves for various mobility studies. Table 60. Interfirm Mobility of Business Executives Number of Firms Warnera Overseas*5 Canadian Quebec PC EC 1 25 41 27 24 18 2 23 25 27 25 20 3 22 17 24 21 22 4 13 18 9 ' 16 1 2-"-5 or more 17 9 13 14 28 Totals 100 fo 100 fo 100 fo 100 fo " 1 00 fo Average number of firms 2.9 2.2 2.4 2 .5 3.3 Warner and J.C. Abbeglen, Occupational Mobility (Minneapolis: University of Minnesota Press, 1955), p. 127. bR.F. Gonzalez and A.R. Negandhi, U.S. Executive Overseas (East Lansing: Michigan State University, 1967), p. 99. c L. Belanger, "Occupational Mobility of French and English Canadian Business Leaders i n the Province of Quebec" (Unpublished Ph.D. thesis, Michigan State University, 1967), p. 106. Of the five different groups of executives, the Overseas executive made the fewest moves between firms followed by the Canadian executive of this study. The French-Canadian business leader i n Quebec made the next largest number of moves followed by the big business leader of Warner and 136 Abegglen. The English-Canadian business leader i n Quebec made the most moves, i n sharp contrast to the American executive overseas, who might also be considered to be working i n an alien environment. It was also quite a contrast with the results of this study i n which 126 or about a quarter of the responses came from the province of Quebec. It could be that some of those answering Belanger's questionnaire also answered this one, although none identified i t on the last item of this questionnaire. Another item worth comparing would be the influence of friends, relatives and associates on one's career. Unfortunately this proved more d i f f i c u l t than anticipated despite the similarity of questionnaire items. Warner and Abbeglen grouped their responses differently when reporting the results, while Belanger combined three different categories into one and Malferrari omitted the item entirely. However some comparisons can be made for those having no connections: Warner, 66$; Canadian executives, 71$ but 75$ for U.S. born; and Belanger, 71$ for his English Canadians ^ 74. and 81$ for his French. In the Canadian studies the percentages shown as having friends and relatives i n the same firmware quite low, particularly since 55$ of the respondents indicated their fathers were in supervisory, executive or ownership roles i n business. In this connection, Belanger made this comment concerning influence: "Pull or nepotism does exist within hierarch-75 i c a l structures, but i t was not widespread." The phrasing of Belanger's questionnaire gave him information to 73 Warner and Abbeglen, op. c i t . , p. 162. 7 4Belanger, op. c i t . , p. 126. 7 5 I b i d . , p. 218. 137 construct tables showing the average ages at which the respondents entered business and assumed their present positions. The differences represented the number of years required to reach their present positions. By doing this for both the language groups i n business leadership i n Quebec, he was able to determine the differences based on education, father's occupation, size of business and other factors that might influence career progress. He found that the francophone achieved his present position an average of six years faster than the anglophone and the difference was even greater for larger firms Malferrari designed his questionnaire to obtain the age at which the overseas executive was appointed to three different levels of hierarchy: f i r s t level supervision, minor executive, and major executive. This was the most useful approach for analyzing-the relative effects of education, birthplace and father's occupation on career progress. In addition to having upward mobility at the 5, 10 and 15 year points, he had the specific ages for reaching each level. He was then able to determine percentages, means and standard deviations for various factors that might affect career 77 progress. Occupational origin, education, foreign experience, birthplace of the executive a l l played a part i n the upward movement of the executive. Brief mention was made i n the last chapter of the size of firm, i t s owner-ship and the type of business as minor factors affecting the upward mobility in business organizations. Next comes a summary of the findings and the possible implications for prospective leaders of Canadian corporations. 7 6 I b i d . , p. 114. 7 7 M a l f e r r a r i , op. c i t . , p. 93-CHAPTER VI CONCLUSIONS AND AREAS FOR FURTHER STUDY This chapter b r i e f l y reviews the findings of the previous two chapters and suggests some possible areas for future research. The leading executives of Canadian business have not emerged proportionately from the general population. Geographically they have been quite mobile. Only forty percent of those replying were born i n the province or area where they now occupy major decision-making positions influencing the economic affairs of the nation. The western provinces have contributed more than their share while Quebec and the Atlantic provinces have not produced their proportion. Large numbers born in these areas have migrated to head offices i n Ontario and Quebec. About a quarter of those responding from the latter province were born within i t s boundaries. In contrast, over three quarters of the executives born i n Ontario were at head offices i n that province. Educational and cultural differences probably contributed to the disparity. Urban centers produced a disproportionately large share of the Canadian born executives. Over 54$ of the executives were born i n c i t i e s over 25,000 but only 25$ of the Canadians were city dwellers at that time. Other mobility studies reviewed made similar observations about the origins of managers. Both social backgrounds and educational opportunities may have played a part i n this situation. United States born executives held leading, positions i n Canadian business i n disproportionately large numbers. That country supplied 16.3$ 138 139 of the respondents although only 4.3$ of the Canadian population in 1921 had been born there. In 1961 only 1 .6$ of the Canadian population reported a U.S. birthplace. Many of the U.S. born executives were found i n indus-tries which have experienced great expansion i n Canada during the past 20 years - o i l , chemicals and cement. The percentage also increased with the degree of foreign ownership. In the firms that have been i n operation i n Canada less than 20 years, 31 -3$ of their executives were born in the United States. On the average, the American immigrants were more highly educated, particularly i n the fields of business administration and engineering. Consequently, i t appears that these executives were brought into industries where Canada had neither time nor f a c i l i t i e s to develop i t s own experts. This may be placing Canadian owned firms at a competitive disadvantage in growth areas. Probably the most significant factor distinguishing the respondents from the general population of Canada was the educational level attained by the executives. The proportion with university degrees was eleven times the percentage i n the male labour force. At the other end of the scale, only 6$ had not completed high school as compared with over three quarters of the labour force i n 1961 . There were more than twelve times more men of meager education i n the general population than among the elite . . Education certainly appears to be a prerequisite for promotion to executive rank;.'. The importance of education was even more evident among the younger executives and i n firms with over 10,000 employees. In both groups of executives, there were more respondents with two degrees than with none, This trend towards more education was apparent i n executive backgrounds i n a l l the studies reviewed. 1 4 0 Also evident i n this study was increased emphasis on post graduate studies i n business administration and commerce. Almost half the younger respondents with post graduate training indicated this f i e l d . It has been described by Armstrong as the area of education i n which Canada lags farthest 1 behind United States. The trend observed i n this study indicates that further research should be made into increasing the quality and number of Canadians educated i n this f i e l d . Lower educational achievement was one of the reasons why French 2 Canadians appear under-represented at management ranks. Studies done for the Royal Commission on Bilingualism and Biculturalism indicate that f i e l d of study was another. The French language universities emphasize classics and l i b e r a l arts. The French speaking graduate with training i n commerce or engineering i s now being offered a premium for his ethnic origin by 3 large firms. There was also some evidence i n Belanger's study that the career progress of such individuals was more rapid than for English Canadian 4 managers i n Quebec' Perhaps the rewards now being offered the French Canadians may bring about changes i n the educational programmes of that province. However, the rest of Canada cannot afford to be complacent about management education by making comparisons with Quebec. S t i l l larger 1 D.E. Armstrong, "The Manager of the Future," Pulp and Paper Magazine  of Canada (Gardenville, Quebec: May 1 9 6 7 ) . 2 Royal Commission ori Bilingualism.and Biculturalism, Book III, The  Work World (Ottawa: Queen's Printer, 1 9 6 9 ) , p . ' 9 3 . 3 R.N. Morrison, "Corporate Policies and Practices of Large Manufac-turing Firms" (Royal Commission on Bilingualism and Biculturalism, 1 9 6 6 . Unpub-lished paper on deposit at National Library, Ottawa), p. 2 4 . 4 L . Belanger, "Occupational Mobility of French and English Canadian Business Leaders i n the Province of Quebec" (Unpublished Ph.D. thesis, Michigan State University, 1 9 6 7 ) , pp. 1 1 4 , 1 2 3 . 141 percentages of American executives have university degrees according to recent mobility studies. If the comparable percentages from this study were placed on a trend line from the Warner study to more recent ones, i t would appear that the Canadian respondents are about twelve years behind United States despite the number of well educated executives who were born i n that country. Comparisons of occupational origins would suggest that mobility into Canadian executive ranks i s less open than i n United States. Seventy percent of the respondents indicated that their fathers were business owners, foremen, executives or professionals compared with only ten percent of the 1931 male labour force. Representation ratios of 8 . 5 for the manag-er i a l group and 4 . 5 for the professional were higher than any recent American study of business managers. Because immigrants represent a large proportion of the Canadian executives and their antecedents, another check on mobility was made that would be independent of national boundaries. By comparing the occupation of the executives' fathers with those of the grandfathers, ratios of occupa-tional s t a b i l i t y were calculated. The Canadian ratio for the executive rank was higher than that of any study of American business leaders. That observation tends to confirm the earlier comment about less mobility into Canadian executive ranks, than i n United States. Based on the results of two mobility studies i n United States, Warner concluded that there had been an increase i n mobility into executive 5 ranks i n that country over a generation. Porter suggested that mobility "'w.L. Warner, and J.C. Abbeglen, Occupational Mobility (Minneapolis: University of Minnesota Press, 1955)> pp. 5 5 , 6 5 . 142 into executive ranks i n Canada had declined.^ The findings of this thesis alone were not enough to conclusively refute or support his comments. Additional research w i l l be required to ascertain the true situation i n this area. An influencing factor mentioned i n this thesis would be the large number of sons reported by the Canadian executives. Their marriages produced an average of 1 .58 sons, which would be more than enough to f i l l their fathers' jobs. If the high rate of f e r t i l i t y and the high rate of contin-uity continues i n high executive ranks i n Canada, i t may make upward mobility d i f f i c u l t i n the future. In comparison, Warner observed only 1 .01 sons per 7 executive i n his respondents, barely enough to succeed their fathers. Despite the observations made i n the last paragraph, the responses to both this study and Belanger's indicate less influence from relatives and friends than had been found i n the Warner and Abbeglen research. A l l mobi-l i t y studies had noticed that the ratios of continuity were the lowest for business owners. The decline of the individual proprietor i n favor of the corporate form of organization i s f a i r l y common knowledge. In view of this, why the high degree of continuity among the executives? How do Canadian corporations recruit their managers and prepare them for executive roles? Although the answers to such questions were part of the goals.;of this thesis, no satisfactory explanation developed—another possibility for additional research. The social, educational and business backgrounds of major executives ^John Porter, The Vertical Mosaic (Toronto: University of Toronto Press, 1965), P- 294. 7 Warner and Abbeglen, op. c i t . , p. 250. 143 in Canada should be of interest to corporations concerned with the training and succession of their top employees. The universities have a responsibility to provide the f a c i l i t i e s and programmes for their academic training. Since both the quality and quantity of managers affect the performance of the Canadian economy, the government should encourage their development. This research has indicated the value of university training i n business. Corporations and governments could encourage the development of courses and prospective managers by providing grants to investigate further the development of managerial s k i l l s and the various approaches which might be used to encourage their growth. This i s an area of education in which Canada lags far behind the United States. Would providing funds, for developing such human resources be a better way to preserve a Canadian identity than giving grants to corporations to develop resources and build Industrial plants? LITERATURE CITED BOOKS Clements, R.V. Managers, a Study of Their Careers i n Industry. London: Allen and Unwin Ltd., 1957. Cleveland, Harland; G.V. Mangone and J.C. Adams. The Overseas Americans. New York: McGraw-Hill, 1 960. Editors of Fortune. Executive L i f e . Garden City, N.Y.: Douhleday, 1956. Gonzalez, R.F.; and A.R. Negandhi. U.S. Overseas Executive Orientations  and Career Patterns. East Lansing: Michigan State University, 1967. Gould, Jay M. The Big Business Executive/l 964: a Study of His Social and  Educational Background. New York: Scientific American Inc., 1965. Gould, Jay M. The Technical E l i t e . New York: Augustus M. Kelley, 1966. Guzzardi, Walter. The Young Executives. New York: New American Library, 1965. Jennings, Eugene Emerson. The Mobile Manager. East Lansing: Michigan State University, 1967. Lindeman, John and E. Armstrong. Policies and Practices of United States Subsidiaries i n Canada. Montreal: Private Planning Association of Canada, 1960. Mills, C. Wright. The Power E l i t e . New York: Oxford University Press, 1956. Moment, D. and A. Zaleznick. Role Development and Interpersonal Competence. Boston: Harvard University, 1963. Newcomber, Mabel. The Big Business Executive, the ^Factors that Made Mm  1 900-1 950. New York: Columbia University Press, 1955-Park, Libbie C. and F.W. Park. Anatomy of Big Business. Toronto: Progress Books, 1962. Porter, John A. The Vertical Mosaic, An Analysis of Social Class and Power  in Canada. Toronto: University of Toronto Press, 1965. Powell, Reed M. Race, Religion and the Promotion of the American Executive. Columbus: Ohio State University, 1969. 144 Richman, Barry M. Management Development and Education in the Soviet  Union. East Lansing, Michigan: Michigan State University, 1967. Safarian, A.E. Foreign Ownership of Canadian Industry. Toronto: McGraw-Hill, 1966. Taussig, F.W. and C.S. Joslyn. American Business Leaders. Hew York: MacMillan, 1928. Vance, Stanley C. Boards of Directors: Structure and Performance. Eugene: University of Oregon, 1964.' Warner, W.L. and James C. Abegglen. Big Business Leaders i n America. Hew York: Harper, 1955-Warner, W.L. and James C. Abegglen. Occupational Mobility i n American  Business and Industry. Minneapolis: University of Minnesota Press 1955. Warner, W.L.; and others. The American Federal Executive. Hew Haven: Yale University Press, 1963. CANADIAH GOVERNMENT PUBLICATIONS Annual Report, Corporations and Labour Union Returns Act. 1962. Ottawa: Queen's Printer, 1965. Bertram, Gordon W. The Contribution of Education to Economic Growth. Ottawa: Staff Study No. 12, Economic Council of Canada, 1966. Dominion Bureau of Statistics. 1961 Census of Canada, 94-501 . Ottawa: Queen's Printer, 1 963-Economic Council of Canada. Second Annual Review. Ottawa: Queen's Printer, 1965. Parai, Louis. Immigration and Emigration of Professional and Skilled  Manpower During the Post-War Period. Ottawa: Queen's Printer, 1965-Royal Commission on Canada's Economic Prospects. Final Report. Ottawa Queen's Printer, 1958. Royal Commission on Bilingualism and Biculturalism Book III, The Work  World. Ottawa: Queen's Printer, 1969. 146 DIRECTORIES AND ENCYCLOPEDIAS Canadian O i l Register. Calgary: CO. Nickle Publications Co. Ltd., 1966. 1966 Canadian Trade Index. Toronto: Canadian Manufacturers' Association, 1966. The Canadian Who's Who. Toronto: Trans Canada Press, 1963. Financial Post Corporation Service. Toronto: MacLean-Hunter, 1967. Financial Post Directory of Directors. Toronto: MacLean-Hunter, 1967. Goldhammer, Herbert. "Social Mobility," International Encyclopedia of the  Social Sciences. New York: MacMillan Co. and the Free Press, 1968. Vol. XIV. ARTICLES Armstrong, D.E. "The Manager of the Future," Pulp and Paper Magazine of  Canada. Gardenvale, Quebec: May, 1 967-Chartrand, Phil and Ken Pond. "Executive Career Paths i n the Public Service of Canada," The Canadian Personnel and Industrial Relations  Journal. Vol. 16, No. 3, May 1969. Ferrari, Michael R. "Origins and Careers of American Business, Government and Academic E l i t e s , " California Management Review, Vol. XII, No. 4 : (Summer 1970). Financial Post. Toronto: MacLean Hunter Ltd. "The "Nine Hundred," Fortune XLVI, No. 5 (November 1952). 0'Donovan, T. "Differential Extent of Opportunity Among Executives and Lower Managers," Academy of Management Journal, August 1 962. "Portrait of the Canadian Executive," Executive, the Magazine for Canada's  Decision Makers. Southam Business Publications, Vol. X, No. 3 (March - 1968), No. 4 (April 1968), No. 5 (May 1968). Porter, John A. "The Concentration of Economic Power and the Economic E l i t e i n Canada," Canadian Journal of Economics and P o l i t i c a l Science, Vol. XXIII, No. 2 (May 1956). "Technicians Moving in at the Top," Business Week, June 12, 1965-147 UNPUBLISHED RESEARCH AHD ARTICLES Armstrong, D.E. "The Threat of Hew Revolutions i n Management and Education." Montreal: MLmeo, 1968. Armstrong, D.E. "Education and Achievement, Corporate Policies With Respect to Bilingualism and Biculturalism." Montreal: McGill University, 1966. (Unpublished manuscript deposited i n National Library, Ottawa) Auclair, G.A. and Read, W.H. "A Cross Cultural Study of Industrial Leadership." Montreal: Royal Commission on Bilingualism and Bicultur-alism. (Unpublished paper on deposit at National Library, Ottawa, 1966) Belanger, Laurent. "Occupational Mobility of French and English Canadian Business Leaders i n the Province of Quebec." (Unpublished Ph.D. thesis, Michigan State University, 1 967) Daly, D.J. "The Changing Environment for Management i n Canada." Ottawa: Economic Council of Canada, Mimeo, 1969. Malferrari, Carolos Jose. "The American Executive Overseas: an External Profile." (Unpublished Ph.D. thesis, Michigan State University, 1965) Morrison, R.N. "Corporate Policies and Practices of Large Manufacturing Firms." Royal Commission on Bilingualism and Biculturalism, 1966. (Unpublished paper on deposit at National Library, Ottawa) APPENDIX 149 Table 61. Analysis of Mailings and Responses by Industrial Classification No. of No. of Questionnaire Response Industry Firms Mailed Returned Rate Mines 28 Mineral fuels 19 Foods 33 Beverages and Tobacco 9 Rubber.and. leather 10 Textile and clothing 1 0 Wood, paper & lumber 22 Printing and publishing 6 Primary metal 9 Metal fabricating 10 Machinery 10 Transportation equipment 1 7 Electrical products 14 C ement 9 Refining •  • • 11 Chemical 12 Miscellaneous manufacturing 15 Construction & other 6 Transportation and ' communication 31 Wholesale & r e t a i l • trade 17 Banking 8 Finance 8 Trust & loan 7 Insurance 11 Usable replies Discarded as incomplete Refusals Totals 3 3 2 78 2 9 37.1$ 5± . 21 61 .1 132 62 48.5 94 52 54.2 27 12 44.4 30 19 63.3 2Q 14 46.6 181 97 51.9 67 26 38.8 18 9 50.0 21 I I 52.0 110 48 43.6 30 13 43.3 30 16 53.3 50 2 4 48.0 4 2 24 57.1 28 16 57.1 32 17 53.1 35 20 57.1 41 20 46.5 290 150 51 .7 18 7 38.8 ' -21 41 50.0 112 54 48.2 51 2 3 45-1 45.1 24 5 20.8 2-5 14 56.0 21 12 57.1 22 2 1 65.6 102 52 51 .0 485 49.6$ 2 .2 18 1 .8 978 505 51.6$ QUESTIONNAIRE COMMENTS "I went to university during the day and worked nights and weekends— i t can be done!" "I believe executive opportunity i n Canada i s very great. It seems to us that the opportunities considerably exceed the supply of competent people. In the Atlantic region, the d i f f i c u l t y of keeping or attracting f i r s t class management i s having a serious negative effect on our develop-ment. It seems to be very d i f f i c u l t to keep or attract good managers to this region unless they have a personal interest here, such as family connections. There are constant opportunities and pressures for good managers here to accept positions i n Central Canada or the U.S.A. They are very hard to deny." - President, Maritime Telephone and Telegraph " . . . many of your questions seem quite superfluous i f the t i t l e of your thesis i s "Mobility of Business Executives in Canada". If you are interested in the how and why of 'Executive opportunity i n Canada' you surely would be more concerned with the why and how a man succeeded i n attaining his present job rather than where one was born and the sex of one's children etc." - from an executive born i n Russia "More important than a l l the foregoing are hard work, desire to lead, sense of responsibility and flexible attitude—following of proper degree education." "There i s an insatiable demand for honest young people of average i n t e l l i -gence who are prepared to dedicate themselves to the success of their firm knowing intuitively that their personal success can only come with or after their firm's success—never before." "Many subscribe to the theory that 'luck' plays a key role i n an individual 1 success. I f 'luck' bears the following definition, then I subscribe to the theory:—'Luck i s when good planning meets opportunity'. More than ever before, the opportunity for a f u l l and successful l i f e time i s available to more and more Canadian youth. It requires good planning, a creative mind and a generous amount of hard work." Questionnaire comments 2 "A breakdown of the specific industry might be enlightening. For example the o i l business has developed most since 1947. Time i s required to train nationals for key positions . . . Another point you might find of interest i s the reason a person entered that particular f i e l d . You have ascertained the family-friend connection but could you not have researched the original motivation. Why was reffiuneration omitted? Should you not at least check the remuneration at the time of starting employment, as related to remuneration available i n other fields?" - President, Great Plains Oil & Gas "Do not underestimate the role of the services in providing opportunity i n handling people and i n administration. Despite the overall horror of war, many of my generation would not have advanced as far as we have without the education and experience, however informal, of the service. I doubt that ' advancement to senior executive position' w i l l be possible for high school (only) graduates of the 1960's. Not because some might not be smart enough, but because of our demands on starting educations which w i l l deny to many the opportunity to enter the stream." "For students seeking a career i n sales of a professional nature such as chemical or mechanical engineering, I consider the following steps important: 1 . Obviously attain as high an academic education as possible. (The main contacts are with high calibre professional engineers.) 2. Gain practical experience i n the related f i e l d (such as an apprentice-ship). You then can discuss manufacture intelligently as well as the technical aspects,;.. 3, Never stop learning and keep i n touch with new procedures. High pressure salesmanship i s not required and i s in fact frowned upon, but complete technical and practical knowledge i s a must. With enjoyable hard work and constant study, this i s a very rewar-ding and worthwhile career with unlimited opportunities for individual advancement." - Industrial Sales Manager "There are three requirements for success as an executive and i n this order: 1 . Integrity, 2. Brains, 3- Energy. If education i s available i t helps i n proportion to the amount. These qualities however are more essential than education, breeding, social position, colour, pull, or any other." - President, Dunlop Rubber Questionnaire comments 3 "Data developed from this survey would probably reveal a different pattern for the years 1947-67 (20 years) than for the previous 20 years 1927-1947. The information developed might be more meaningful i f reported as separate or subtotals. Trend might be more discernable." "The factor of 'being i n the right place at the right time1 should not be overlooked. It has some importance i n one's progress." "Have been a director and senior executive in a large U.S. firm for 25 years. This firm owns 80$ of the Canadian company of which I am now president, through i t s Canadian subsidiary. $240 million have been expended i n building the plant, more than 90$ of which was raised i n the U.S. A l l of the funds are guaranteed by the U.S. parent company, hence i t s interest i n having the new company under supervision of one of i t s senior executives." - President, Great Canadian O i l Sands "Following graduation from university, I was employed by a U.S. company in the U.S.A. Years later that company acquired control of a Canadian company of which I became a director, then vice-president, then subse-quently president, returning to Canada to reside and work." "As a matter of general reflection, I did not know any person i n any of the four companies in which I have been employed when I joined each company." "Looking back, I would say that any success I have had was due i n part to: 1 . I had to make an effort i f I were going to be regarded as a "success" by the standards of my time, 2. The college courses I selected, namely, Mathematics and Physics are most interesting disciplines. I learned to develop formulas rather than, as engineers do, use formulas. The study of Mathematics forces one to think in the abstract and to think clearly, 3. I was blessed, or otherwise, with an innate drive which some people lack. The above three points are a l l wrapped up i n the French system whereby top students who have acquired their senior matriculation (Bacca-laureat i n France) i f they had the above three requirements and have done particularly well i n their Baccalaureat, they spend two years cramming for the examinations which w i l l admit them to the Ecole Polytechnique i n Paris. Questionnaire comments 4 Three hundred are accepted each year. As graduates they are known as Les "X". Alumni of the "X" wind up running most of France's biggest private and state-owned companies. The Polytechnique's curriculum i s based upon Mathematics and. Science and problems are dealt with i n abstract terms. I suspect that such an approach i s tougher but more valuable than the Business Administration Course given today even the top ones such as the Harvard Business Administration School. - President, Cement Lafarge 156 Study of Business Leaders In Canada Faculty of Commerce and Business Administration University of British Columbia STRICTLY CONFIDENTIAL Industry code 1-5 1. What is your present age? •. 2. At what age did you enter your present organization?. . 3. How many years have you been at your present level of job responsibility? 4. What is the ful l official title of your present business position? 5. Which of the following categories most clearly describes the kind of work done by you or the people under you? 6-7 8-9 10-H 12 production . . . . . 1 sales, promotion . . 2 accounting, control 3 finance, credit . . 4 engineering . . . . 5 6 _ 7 other (please specify) 8 (13 At what age did you first become self-supporting? 14-15 7. After becoming self-supporting, what occupation did you engage in? (Please check the most appropriate category. If you have not been self-supporting as long as the column indicates, leave blank). When you first became self-supporting 16 farmer 1 hourly worker 2 salaried employee (non-supervisory) 3 owner of small business. 4 owner of medium or large business 5 First line supervisor. . . . . . . . 6 middle line executive. . . . . . . . 7 major executive 8 professional person 9 other (please specify) a 5 years later 17 1 2 3 _ 4 __ 5 6 _ 7 _ 8 _ 9 a 10 years 15 years later later 18 19 1 2 3 4 5 6 7 8 9 a 1 2 3 4 5 6 7 8 9 a 8. How many firms have you been associated with during your business career (including your present firm)? . . 20 9. How many firms have you been associated with at the job level of minor or major executive (including your present firm) ? . • 21 PAGE 2 157 10. Have you been a resident outside Canada while employed by.business? yes 1 no 2 (22 If yes, in how many countries? 23 11. How many years has your present organization been con-ducting business in Canada? 24-25 12. What is the approximate size of this organization's activities in Canada? . . approximate value of total under $25,000,000 1 (26 assets in Canada: $ 25,000,000- 50,000,000 2 $ 50,000,000-100,000,000 3 $100,000,000-500,000,000 _ 4 over $500,000,000 5 approximate number of under 500 1 employees im Canada: 500-1,000 2 1,000-3,000 _ 3 3,000-5,000 __• 4 (27 5,000-10,000 _ 5 over 10,000 6 13. To what degree is the voting stock over 95 per cent 1 of your organization owned in Canada? 50 - 95 per cent 2 (28 5 - 4 9 per cent 3 under 5 per cent 4 14, Were any of the following owners or executives; in the business which you f i r s t entered relatives friends business associates yes (1) no (2) 29 30 31 in your present firm when you entered i t yes (1) no (2) 32 33 34 15. Are you single? 1 married? 2 separated? 3 divorced? 4 divorced & remarried? 5 widowed? 6 (35 16. In what year were you f i r s t married^ 19 17. What is (was) the principal occupation of the following: ycur father when you were in grammar school 38 farmer hourly worker salaried employee (non supervisory) Owner of small business owner of medium or large business f i r s t line supervisor middle line executive major executive professional person other (please specify) (36-37) your father your your when you became father's wife's self-supporting father father 39 40 41 1 1 1 1 2 — 2 _ 2 _ 2 3 3 3 3 4 — 4 _ 4 _ 4 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 _ 9 _ 9 a a a a (If deceased or retired, please indicate previous occupational level.) PAGE 3 158 18. What was the highest level of schooling attained by yourself and certain members of your family: Less than high school some high school high school graduate some college college graduate post graduate study yourself father mother wife _ 3 (42 _ I 2 3(43 4 5 6 1 2 3 4 5 6 3 (44 1 2 3(45 4 5 6 If you are a college graduate, please answer the following questions. If not, please skip to question 19. Name of college or university If you have done graduate work, name awarding undergraduate degree: university awarding highest degree: 46 47 Please indicate arts, languages, humanities biology, zoology social sciences physics or chemistry engineering business administration medicine law other* *please specify undergraduate major f i e l d _ X _ 2 _ 3 4 5 6 7 8 9 _ (48 graduate f i e l d __ X _ 2 __ 3 4 5 6 7 8 9 _ (49 19. What are your community activities' parents' activities: P.T.A., Boy Scouts, L i t t l e League, etc. Service organizations: Lions, Kix^anis, Shriners etc. Church or synagogue Charity drives, United Fund, etc. Educational bodies: school board, university senate etc. Professional or trade associations Local government Local p o l i t i c a l organization Other* * please specify check here i f active 20. Place of birth Canada British Isles United States Other * * please specify self _ 2 (52 _ 3 4 check here i f you are or were an officer 2 3 4 ( 5 6 7 8 9 50 father 1 2 (53 3 4 2 3 4 5 6 7 8 9 (51 father's father _ 1 __ 2 (54 __ 3 4 If born in Canada or United States, in which state or province were you born? What was the approximate size of your birthplace at the time you were born? over 400,000 (or suburb) 1 100,000-400,000(or suburb) 2 25,000-100,000 __ 3 (55 2,500-25,000 4 rural or under 2,500 5 159 PAGE 4 21. How many children do you have? boy(s) 56 girl(s) 57 22. What career has your son(s) entered? If more than one son is self supporting, please indicate the number in each career. not entered career as yet farmer hourly worker salaried worker business owner or partner profession government service 23. Do you re c a l l participating i n a similar s c i e n t i f i c study of business leadership? Yes 1 no 2 (59 If yes, please indicate under whose auspices i t was conducted. cn (If you have any further remarks about these matters, they would be helpful. Please use the space on the reverse side for any comments you would like to make.) PRINTED CARD ENCLOSED WITH QUESTIONNAIRE Please forward a summary of the thesis "The Mobility of Business Executives in Canada," by W. G. Daly to: NAME _ FIRM ADDRESS ..-RETURN ADDRESS STAMPED ON BACK FACULTY OF COMMERCE AND BUSINESS ADMINISTRATION UNIVERSITY OF BRITISH COLUMBIA VANCOUVER, B.C. CHARACTERISTICS OF SENIOR BUSINESS EXECUTIVES IN CANADA Highlights from thesis research done by W. G. Daly for the degree of Master of Business Administration at the University of B r i t i s h Columbia. The excellent response of Canadian executives to our questionnaire made th i s report possible. Executives receive numerous requests to cooperate i n various types of surveys. We r e a l i z e , too, the heavy cost i n executive time, of answering every request. Knowing t h i s , we p a r t i c u l a r l y appreciate the f a c t that so many cooperated and took time to complete our questionnaire. Our sincere thanks to a l l our participants. I regret that economic pressure forced me to take a job and delayed progress on the research and t h i s report. From the 986 questionnaires mailed out, 485 usable r e p l i e s were processed, or 49.2%. The executives to whom they were addressed head the largest business concerns i n Canada. To the l i s t of 100 largest manufacturing firms published by the Financial Post were added others with over 500 employees or assets over $25,000,000. 90% of the responses came from firms with assets over $25,000,000 and 75% from those with over 1000 employees. In some public corporations the selection of three top o f f i c e r s was straight-forward: chairman, president and executive vice-president. How-ever the use and meaning of t i t l e s i s by no means consistent from one firm to another. Sometimes the author made an ar b i t r a r y choice based on the t i t l e and Canadian residence of the executive. A summary of those replying i s shown on the next page to indicate the authority of those included i n t h i s report: Composition of Sample by Position i n Hierarchy Number Per Cent Chairman or president 225 46.4 Vice President 197 40.6 Other o f f i c e r s : treasurer, secretary, sales manager, personnel manager, et c . 63 13.0 Totals 485 100% To indicate the representation by d i f f e r e n t segments of the economy, a summary of the returns by i n d u s t r i a l c l a s s i f i c a t i o n has been provided: - 2 - 163 Composition of Sample "by Industrial Classification Number Per Cent Mining and o i l exploration 65 13.4 Food, beverage and clothing 94 19.4 Wood, paper and primary metal 48 9.9 Secondary manufacturing 148 30.8 Transportation and communication 54 11.1 Merchandising 23 4.8 Banking, finance and insurance 52 10.7 485 100% Probably the most significant factor distinguishing the respondents from the general population of Canada was the educational level attained by the executives. 64.8% graduated from university, many with second degrees. This i s much higher than the 8.4% reported for the managerial occupation in staff studies done by the Economic Council of Canada. ^  Educational Level of the Canadian Executive  Compared with Canadian Labour Force (Male) Educational Canadian Canadian Male Level Executive Labour Force Ages 25-64 Less than high school .8 43.8 Some high school 5.4 29.7 High school graduate 14.7 8.7 Some, college 14.3 10.1 College graduate 42.4 5.6 Post graduate 22.4 Totals 100% 100% Bertram, Gordon W., The Contribution of Education to Economic Growth, Staff study No. 12, Economic Council of Canada, 1966. Page 8. 164 Compared to the educational l e v e l of the Canadian male labour force, those who have completed t h e i r university t r a i n i n g are over eleven times as l i k e l y to be top executives. This relationship i s i n agreement with previous studies done on executives born i n the United States. The proportion with degrees i s higher than the 57% observed by Warner and Abegglen i n the i r study of 1952 American executives. 2 However i t i s not as high as the 81% shown by a Michigan study for executives born and educated i n the United States, but serving the i r corporations overseas i n 1962.^ In the Michigan study the executives to whom the questionnaires were sent out were selected by the overseas d i v i s i o n of the cooperating firm. Consequently the d i s t r i b u t i o n would tend to favor men who were on the way up i n the organization rather than those who had already achieved prominence. This difference i n methodology probably accounts for much of the younger age and higher educational achievements- of the overseas executives. Average age of the respondents was 52.6 years compared to 53.7 i n the Warner Study and 40.7 i n the Michigan study referred to above. To try to assess a trend, the r e p l i e s were divided into groups below and above 50 years of age. 76% of the younger group and 61% of those over 50 had university degrees. Respondents i n t h i s present survey were also more highly educated (79.1% had attended university) than the 62.7% indicated i n " P o r t r a i t of a Canadian Executive" 4. The sample for that s t a t i s t i c a l study was drawn from the c i r c u l a t i o n f i l e of the magazine i n which i t was published. Compared with the cross-section used i n t h i s study, t h e i r respondents included executives lower on a firm's hierarchy with greater emphasis on those i n service, r e t a i l and wholesale and less on industry and finance than does this study. More questionnaires were processed despite the f a c t that response rate had been less. Motivation for the research appeared to be market studies rather than probing the backgrounds of executives to determine career progress and opportunity. Analyzing the f i e l d of study under the age groupings mentioned above showed a growing emphasis on education i n commerce and business administration, especially at the graduate l e v e l . Further research should be done on business education of the type that does not lead to a university degree, eg. that done by university extension departments. Advanced Schools of Management and professional s o c i e t i e s . Nineteen Chartered Accountants indicated their q u a l i f i c a t i o n s and have been shown separately i n the tables below. Some respondents indicated a second degree, such as law or graduate studies. The l a t t e r interpretation has been included with studies at the Master's or Doctor's l e v e l . 2 Warnerv W. Lloyd, and Abegglen, James C , Occupational Mobility i n  American Business and Industry. Minneapolis: University of Minnesota Press, 1955. 3 M a l f e r r a r i , Carlos Jose, The American Executive Overseas: An External  P r o f i l e . (Unpublished Ph.D. d i s s e r t a t i o n , Michigan State University, 1965) 4 " P o r t r a i t of the Canadian Executive", Executive, The Magazine of Canada's  Decision Makers. Business Publications, Vol . 10 , 1968, March, p.48-53, A p r i l , p.53-61, May, p.53-58. - 4 - 165 Educational Fields of Study for Canadian Executives Field of Study undergraduate graduate under over under over Arts, languages, humanities 12.8 13.0 5.7 3.5 Geology, biology, zoology 6.0 4.7 5.7 10.5 Social sciences 5.1 3.6 3.8 7.0 Mathematics, physics, chemistry 5.1 8.3 3.8 7.0 Engineering 39.3 42.0 13.2 14.0 Commerce and business administration 22.2 19.6 49.3 19.3 Chartered accountancy 5.1 4.2 14.8 12.3 Law 4.3 4.7 3.8 21.1 Others not included above - - - 5.3 Totals 100% 100% 100% 100% Number responding 117 193 53 57 No relationship was found between the number of employees in a firm and the educational level of i t s top executives, but the results suggest that firms with greater total asset values had top executives with greater educational achievements. An examination of the career sequence of top Canadian executives indicates that 41.4% started to move up into a supervisory position by the time they were employed for five years. After ten years most of them were in middle line or major executive positions. By the time they had been employed fifteen years, 52.3% were major executives and 30.3% were middle line executives. 5 - 1 6 6 Trends of Occupational Advancement Occupation of Canadian Executive Fi r s t occupation 5 years later 10 years later 15 yea] later Farmer 1.0 .4 .0 .2 Hourly worker 16.1 4.2 .0 .0 White collar 52.2 27.6 6.0 1.4 Owner of small business 1.7 1.5 2.2 .5 Owner of medium or large business .4 4.0 2.2 1.6 Fi r s t line supervisor 2.1 27.6 22.6 7.0 Middle line supervisor 1.5 13.6 43.1 30.3 Major executive 0.0 .2 11.7 52.3 Professional person 13.0 11.8 9.2 6.1 Military service 9.2 5.3 2.0 .5 Other 2.7 3.7 .9 .2 Totals 100% 100% 100% 100% Number answering 477 456 446 442 No response (of 485) percentage 1.7 6.0 7.9 8.7 A comparison with the Warner study indicates that career progress was not as rapid as for the American Business leader.^ Nevertheless a comparison of the occupations of the executives' fathers with such previous studies suggested greater upward mobility in that a larger proportion of the top executives had fathers who were laborers or f i r s t line supervisors. Relatives, friends and business associates did not influence the career progress of over 70% of the executives. However, where such contacts did exist, they benefitted the man who was in the president's or chairman's post most. Influences of Others on Career Progress Business In Present Firm Relatives Friends Associates President or chairman 11.8 13.7 17.1 Vice President 8.4 8.0 14.1 Other position 4.9 11.7 13.3 Warner and Abegglen, p. 116. 167 As the average president or chairman was usually older and less well educated than the average vice-president, such figures might suggest a decline in family influence in the future. As presidents are often chosen for their a b i l i t y to get along with others, i t would be unwise to extend such a conclusion into the other two major classes of contacts covered in the questionnaire. An analysis of the birthplaces of the top executives indicates that Quebec and the Atlantic provinces are under-represented in relation to their populations. The ratio born in Quebec seems particularly low when 25.7% of the responses came: from that province. Birthplaces of Canadian Executives Compared  With 1961 General Canadian Population Place of Birth Executive % 1961 Population % Ratio of Relative Representation Atlantic 5.4 11.3 .47 Quebec 11.6 25.8 .43 Ontario 33.1 28.6 1.16 Prairies 17.5 10.1 1.11 British Columbia 3.6 4.7 1.31 Total Canadian Born 71.2 84.4 .85 British Isles 8.8 5.6 1.57 United States 16.3 1.6 9.73 Other Europe 3.8 8.0 .48 Elsewhere - .4 -Totals 100% 100% 100% Because of the over representation of American born executives, further research was done to compare their background with that of the Canadian born executives. The United States born were more highly educated, particularly in the fields of commerce and engineering. Many of them were in the industries which have experienced great expansion during • the past 20 years; o i l , chemicals and cement. None of the American born executives were under 35. Consequently i t appears that these men have brought considerable experience and knowledge to fields where Canada has not been able to develop i t s own business executives. 

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