- Frank Stronach
Infobox Person
name = Frank Stronach
image_size =
caption =
birth_date = birth date and age|1932|9|6
birth_place =Kleinsemmering ,Austria flagicon|Austria
death_date =
death_place =
occupation = Businessman:
Auto parts manufacturing
Thoroughbred racetracks
Racehorse owner/breeder
HumanitarianFrank H. Stronach, CM (born
September 6 ,1932 as Franz Strohsack) is anAustria n-Canadian businessman. He is the founder ofMagna International , an international automotive parts company based inAurora, Ontario , Canada, andMagna Entertainment Corp. , which specializes inhorse-racing entertainment.Early life and family
Born Franz Strohsack in the small town of
Kleinsemmering , Styria,Austria to a working-class couple. His childhood was marked by theGreat Depression and theSecond World War .At 14, he left school to apprentice as a tool and die maker. In 1954, he arrived in
Montreal ,Quebec ,Canada , and later moved to the province ofOntario .He is married to
Elfriede Sallmutter , also from Austria originally, and has two children:Belinda Stronach , a Liberal (formerly Conservative) MP and former CEO of Magna, and Andrew Stronach, who is recognized as one of the keenest analysts of horse bloodlines. Fact|date=April 2007Business career
In 1956, he started his first business, Multimatic Investments Ltd., in the old manufacturing district of
Toronto . In 1969, his firm acquired its first automotive parts contract and merged with Magna Electronics. In 1973, the name was converted from Multimatic Investments Ltd to Magna International Ltd., Over the following decades, after several mergers and acquisitions, his business gradually became the major force it is today. Even though Frank Stronach was part of thelabour movement in the 1970s and 1980s, he is well known for his opposition to trade union representation for his employees.Recently, Stronach has been criticized for his multiple voting shares, which allow him to have majority voting power despite owning only 4% of Magna's equity. His pay packages in the past few years which have been around $30 to 50 million CAD have also aroused concern since he only holds the non-operational role of non-executive chairman, although he still wields vast power in this position (
Brian Tobin quit as CEO of Magna's entertainment division, likely because Stronach would not give him autonomy to operate). As a result, Ontario Teachers Pension fund withheld their votes from Stronach and his close allies when it came time to re-elect Magna's board of directors. Some proponents of corporate governance have even made analogies between Stronach and Conrad Black's control of Hollinger Inc. Stronach's blunt response was to tell unhappy investors "if they don't like the restaurant, then don't eat there".Thoroughbred horse racing
Frank Stronach is the owner of Magna Entertainment Corp. which specializes in horse-racing entertainment and owns and operates some of the most prominent
racetrack s in the United States. Among Stronach's early successes was his partnership withNelson Bunker Hunt in the fillyGlorious Song who was voted the 1980 Sovereign Award for Canadian Horse of the Year. Frank Stronach's horses have won theQueen's Plate in 1994 and 1997, theBelmont Stakes in 1997, and thePreakness Stakes in 2000. His horseGhostzapper won several major races including the 2004Breeders' Cup Classic , was voted theEclipse Award for Horse of the Year , and named the World's Top Ranked Horse for 2004.In Canada, Frank Stronach and/or his
Stronach Stables has won theSovereign Award for Outstanding Owner nine times. In the United States, Stronach earned theEclipse Award for Outstanding Owner in 1998, 1999, and 2000.In 2000, Frank Stronach won the
Eclipse Award for Outstanding Breeder . He subsequently establishedAdena Springs Farms which ownshorse breeding farms inKentucky ,Florida and Canada and won the Eclipse Award for Outstanding Breeder in 2004, 2005 and 2006.Politics
He was a candidate of the
Liberal Party of Canada in the 1988 federal election for the riding ofYork—Simcoe , but was defeated by the Progressive Conservative John Cole. He is the father ofBelinda Stronach , the Liberal MP forNewmarket—Aurora .Magna International has also been noted for its connections to the
Ontario PC Party and theOntario Liberal Party .These connections were most famously exhibited when Progressive Conservative Premier
Ernie Eves and Finance MinisterJanet Ecker delivered the 2003 Ontario budget from a Magna plant. This led to accusations that the government was violating centuries of parliamentary tradition, and is generally believed to have had a negative impact on the Progressive Conservatives in the next provincial election.Activities in Austria
In 1986, Stronach founded
Magna Europa , with headquarters inOberwaltersdorf ,Lower Austria .Stronach started to become a notable figure also in the
Austria n public in the late 1990s. In 1997, he announced the project to build anamusement park inEbreichsdorf , which would have included a giantglobe representing theearth that would have been 110 m high and visible from every point in theViennese Basin . The project failed due to severe public opposition.In 1998, Magna took over
Steyr Daimler Puch . In the newly merged companyMagna Steyr , he successfully prevented the establishment ofworks council s, in violation of Austrianlabor law by reprimanding workers who were cooperating with unions. In 2003, Stronach also planned to take overVOEST , but this project failed.In 2004, a leisure center and thehorse racing site Magna Racino were inaugurated at Ebreichsdorf.Besides horse racing, Stronach is also interested in football. He is the main sponsor of FK Austria Vienna, which, in spite of a budget three times larger than that of its strongest competitors and the fact that Stronach is at the same time the president of the Austrian Bundesliga, has failed to completely dominate the league, winning the Austrian Championship only twice since the club was taken over by Stronach in 1999. Stronach also founded the Frank Stronach Football Academy in Hollabrunn to train and educate adolescent players.
Due to opposition among prominent members of FK Austria Vienna, Stronach decided on
November 21 ,2005 to withdraw from the club. OnNovember 24 , he also decided not to seek re-election as president of the Austrian Bundesliga. However, the Frank Stronach Football Academy continues to operate.Stronach also has close ties to many Austrian top politicians from various parties. Former finance minister
Karl-Heinz Grasser (then member of theAustrian Freedom Party , supported by theAustrian People's Party ) worked for Magna for some time after leaving politics following a dispute with his mentorJörg Haider .Andreas Rudas , a former leading member of theSocial Democratic Party of Austria , is currently employed by Stronach.Hurricane Katrina
On
September 6 ,2005 , Frank Stronach announced that he andMagna International were committing $2 million to start a model community for people displaced byHurricane Katrina . TheToronto Star reported that "Magna Entertainment Corp. is [currently] providing housing for about 260 evacuees from the New Orleans area at a racetrack training facility in Palm Beach County, Fla., and will move them to a new community in November. Auto-parts giant Magna International Inc. and MEC are scouting for about 500 to 1,000 acres [2 to 4 km²] in an area of Baton Rouge in Louisiana to set up trailers and infrastructure... 'we would like to build a small community where we would try to be sponsors for the next five to seven years,' [Stronach] said in an interview." [http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1126043418180] Some further details were announced onOctober 6 ,2005 and the new development is officially known as Magnaville. Later the nameCanadaville was adopted.Honours
In 1999 he was made a member of the
Order of Canada .On
November 22 ,2004 , Frank Stronach was awarded the title of an honoraryprofessor of practical business management at theGraz University of Technology .
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