LifeWorks

In 1966, Frank Morneau founded W. F. Morneau & Associates, an actuarial and benefit consulting firm.[11] The firm expanded to open its first U.S. office in 1987 and it launched its administrative outsourcing practice in 1996.[12]

W.F. Morneau & Associates merged with Sobeco in 1997 to establish Morneau Sobeco, led by Bill Morneau as president and chief executive officer.[13] Morneau Shepell, as it was formerly known, was formed in May 2008 through Morneau Sobeco's acquisition of Shepell-fgi – Canada's largest provider of employee health management and workplace training and education services – from Clairvest Group Inc. for $321.9 million.[14]

In the following years, Morneau Shepell made a number of acquisitions, including SBC Systems Company Inc. (U.S. provider of employee benefits administration systems) in January 2012,[15] Mercer Canada's pension and benefits outsourcing business in November 2012,[16] Ceridian's U.S. health and welfare benefits administration business in August 2015,[17] Montreal-based Solareh (national health and wellness services provider that offers employee assistance programs) in December 2016,[18] Montreal-based Longpré (employee assistance and wellness program provider) in January 2017,[19] LifeWorks (platform focused on EAP, employee engagement, rewards and recognition, and human resources communications) in July 2018,[20] and Mercer’s stand-alone, large market, health and defined benefit pension plan administration business in the United States.[21]

Bill Morneau, the former finance minister of Canada, resigned from his position as executive chair of Morneau Shepell in October 2015.[48] In October 2017, Mr. Morneau became the subject of intense scrutiny regarding his holdings in the company, including the effectiveness of moving his holdings into a blind trust to assuage any concerns.[49] At the time, there were allegations that Morneau Shepell stood to benefit if a proposed small business taxation legislation was passed.[50] Critics claimed that Morneau Shepell would benefit if the proposed changes prompted more people to use individual pension plans, a claim which Morneau rejected,[51] In December 2017, Morneau Shepell said that individual pension plans account for less than one 25th of one per cent (0.04%) of the firm's revenues.[52]

Mr. Morneau was also criticized for holding shares in Morneau Shepell outside a blind trust, and thus being in a conflict of interest situation with respect to the pension plan changes.[53] In response, Mr. Morneau said that he acted on the recommendation of Conflict of Interest and Ethics Commissioner Mary Dawson, who stated that shares could remain behind a conflict-of-interest screen overseen by the minister's chief of staff, and that a blind trust was not necessary.[54] The Conflict of Interest Act states "that any such assets, irrespective of their value, must be divested by either the establishment of a blind trust or by way of sale at arm's length."[55] Mr. Morneau responded to the controversy by stating that he sold his remaining shares in Morneau Shepell and donated all of the money he's profited as a result of an increase in the value of the shares to charity.[53]

It was reported that Mr. Morneau and his father sold Morneau Shepell shares before the tax change announcement in December 2015, before any potential increase in value would have occurred.[56] Media reports state that Mr. Morneau sold 680,000 shares for proceeds of $10.1 million before December 7, 2015. Subsequently, Mr. Morneau is said to have sold an additional 320,000 shares on December 17, 2015, for a profit of $4.5 million, which he donated to charity.[57] It was later reported that Mr. Morneau's father sold 100,000 shares in Morneau Shepell before the tax change announcement, on November 23, 2015, and 100,000 shares in Morneau Shepell on December 3, 2015.[58]

In March 2017, Morneau Shepell announced Alan Torrie's retirement from the company and Stephen Liptrap as his successor to the position of president and chief executive officer, effective May 5, 2017.[59]

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