Peter Munk | |
|---|---|
| Born | (1927-11-08)November 8, 1927 |
| Died | March 28, 2018(2018-03-28) (aged 90) |
| Nationality | Canadian |
| Alma mater | University of Toronto |
| Known for | Chairman,president and founder ofBarrick Gold, philanthropy |
| Spouses | |
| Children | 5 |
Peter MunkCC (November 8, 1927 – March 28, 2018) was a Hungarian-Canadian businessman, investor, founder and philanthropist. He was the founder and chief executive officer of a number of high-profile business ventures, including the hi-fi electronics companyClairtone, real estate companyTrizec Properties, andBarrick Gold, formerly the world's largest gold-mining corporation.[1]
Munk is known for his philanthropy, as a donor toMunk School of Global Affairs at theUniversity of Toronto and the Peter Munk Cardiac Centre at theToronto General Hospital. He is also well known for supporting theMunk Debates.
Munk was born inBudapest, into a prosperousHungarian-Jewish family, the son of Katharina Adler Munk and Lajos "Louis" Munk (1898–1977).[2][3] His grandfather, Gábor "Gabriel" Munk, had descended from a family ofrabbis, was a brother of the notedlinguist andethnologistBernát Munkácsi (né Munk), and uncle of the Hungarian jurist and writerErnő Munkácsi. Gábor became wealthy via Austro-Hungarian distribution rights for the popular Viennese chocolate brand,Manner, invested in real estate, then, duringWorld War II, used what remained of his fortune to buy safe passage out of Hungary to neutral Switzerland for members of his immediate family, including his grandson Peter.[4][5]
Hungary was occupied byNazi Germany in March 1944, when Munk was aged 16;[3] along with 14 members of his family, he escaped on theKastner train, which carried 1,684 Jews tosafety in Switzerland. The journey had been arranged byRudolf Kastner of the ZionistAid and Rescue Committee, as a result of secret negotiations withAdolf Eichmann—the high-ranking Nazi had allowed some Jews to leave in exchange for money, gold, and diamonds, part of a series of so-called "blood for goods" deals.[6] Munk's mother, who divorced his father when he was four, was deported from Budapest toAuschwitz concentration camp in 1944. She survived, but later died by suicide.[7]
Munk arrived in Canada in 1948, via Switzerland, initially on a student visa, then graduated from theUniversity of Toronto, in 1952, with a degree inelectrical engineering.[8] Decades later, he praised Canada: "I arrived in this place not speaking the language, not knowing a dog... This is a country that does not ask about your origins; it only concerns itself with your destiny."[9]
In 1958, with $2,800 from his father-in-law, Webber Pharmaceuticals (now Webber Naturals) founder William Jay Gutterson,[10] he co-foundedClairtone with Scandinavian furniture importerDavid Gilmour. Clairtone manufactured high-end console stereos, and later televisions, which were recognizable icons of their day. The most celebrated Clairtone designs were the striking "Project G" series, introduced in 1964, composed of sleek rosewood cabinets with cantilevered black aluminum "sound globes" (speakers). The Project G and G2 were seen in the filmsMarriage on the Rocks andThe Graduate, awarded a silver medal for excellence at theMilan Triennial design exhibition, and endorsed byFrank Sinatra andOscar Peterson.[11] Fans of the Project G includedHugh Hefner.[12]
Clairtone's downfall began with "an ill-advised plan to build a plant in Nova Scotia."[13] The plant, built inStellarton, opened in 1966 with funding from the province'sIndustrial Estates Limited (IEL). According to William Mingo, chief counsel for IEL, as quoted in his daughterNina Munk's book about Clairtone, "Munk was too good a salesman for his own good. He could sell anything to anyone, including himself. My, he was a promoter. My, he had energy. My, he had charm. My, he had imagination."[14] In 1967, as a result of mounting losses and in order to try to recoup its multi-million dollar investments, theGovernment of Nova Scotia took over Clairtone and fired Munk and Gilmour. Munk faced accusations ofinsider trading "that were eventually settled out of court."[13] A report commissioned by Clairtone in the aftermath of the factory's failure found that one of the main issues was the local workforce. "The general population is basically not geared to the manufacturing frenzy and especially the five-day workweek... The welfare situation is such that it has created conditions similar toAppalachia in the United States where the third generation is already on relief."[14]
After the collapse of Clairtone, Munk and Gilmour invested in a plot of ocean-front land in Fiji which they soon developed into a hotel and resort. This venture grew into the Southern Pacific Hotel Corporation, which at its peak consisted of 54 resorts in Australia and the South Pacific. In 1978, the firm signed a deal with thePresident of Egypt to build a resort near theGreat Pyramids. WhenAnwar Sadat cancelled the project, Munk sued theEgyptian government, eventually winning the arbitration case at theInternational Centre for Settlement of Investment Disputes.
In 1979, Munk returned to Canada to start a new venture called Barrick, which he would eventually build into the world's largest gold company. At the time, bankers and the establishment viewed him as "a fugitive and a loser," according to Munk.[15]
Munk was also founder, chairman, and CEO ofTrizec Properties (formerly TrizecHahn Corporation), one of the largest Americanreal estate investment trusts. In 2006, Trizec Properties was sold toBrookfield Properties in a transaction valued at approximately $9 billion.[16]
In 2007, Munk invested with partners inPorto Montenegro, a former naval base on theAdriatic Sea, turning it into a superyacht destination to rival Cannes and Monte Carlo. He was the majority shareholder of Montport Capital, which owned the centrepieces of the complex, Porto Montenegro Marina and Resort. He developed the site on theBay of Kotor, puttingMontenegro on the map for high-end tourism. In 2016 Munk sold the marina and hotel to Investment Corporation of Dubai, asovereign wealth fund,[17] for an undisclosed amount, believed to be about 200 million euros.[18]
In 1980, Munk createdBarrick Petroleum to invest in the oil sector, but he quickly realized that investments in this sector were ruinous. After the acquisition of a small company,Camflo Mines, Barrick left the oil sector and became overnight a mining company.[19] In 2011, Munk planned to merge withGlencore,Ivan Glasenberg's company, to create one of the world's largest commodities giants on par withBHP andRio Tinto. The gold market was not aligned with Glencore's other activities, however, and the deal did not go through.[20]
In 2008, Munk, as the chair of Barrick Gold, intervened at the shareholder meeting to block a proxy shareholder, who had travelled fromPapua New Guinea for the meeting, from speaking about her reports of deadly violence and sexual violence perpetuated by Barrick Gold's security contractors atPorgera Gold Mine.[21]
By 2016, Barrick had proven and probable reserves of two billion tons (1.33 grams of gold per tonne of ore).[22] It is the world's largest gold mining company and the largest Canadian company by capitalization. Munk retired from the day-to-day management but he remained the founder and President Emeritus. "Barrick is my legacy," Munk said.[20]
In 1992, thePeter and Melanie Munk Charitable Foundation was founded. It has disbursed more than $300 million to a variety of organizations that work to improve the health, education and international reputation of Canadians.[23] In a speech he delivered in September 2017, on announcing a $100 million donation to the Peter Munk Cardiac Centre at theToronto General Hospital, Munk spoke of his philanthropy in the context of his gratitude to the country that saved his life: "You opened the door. You gave us everything," he added, referring to Canada as "paradise."[24]
Munk was a major donor to theUniversity of Toronto, hisalma mater. Beginning with a gift of $35 million in 2010, the Munk Foundation enabled the establishment of theMunk School of Global Affairs and Public Policy at theUniversity of Toronto. In total, Munk gave $51 million to his alma mater.[25] ThePeter Munk Professor of Entrepreneurship at theJoseph L. Rotman School of Management is named after him.
Peter Munk also made a substantial donation of $43 million toTechnion – Israel Institute of Technology to establish that university's Peter Munk Research Institute.[26]
In 2016, Munk made a $5 million donation to theFraser Institute, athink tank, to launch the Peter Munk Centre for Free Enterprise Education.[27]
Peter Munk and Melanie Munk established the Aurea Foundation in 2006.[28]Subsequently, Peter Munk established the semi-annualMunk Debates in 2008 with a $12 million donation from Aurea Foundation, a sub-division of his primary charitable foundation.[29]
In 1997, Munk helped create the Peter Munk Cardiac Centre at theToronto General Hospital with an initial donation of $6 million. In May 2006, he announced that he would donate another $37 million, at the time the largest gift ever made to a Canadian medical institution.[30] In September 2017, he donated another $100 million.[31] As well, Peter and Melanie Munk establishedUniversity Health Network’s firstendowed chair for the cardiac program: the Melanie Munk Chair in Cardiovascular Surgery.[32]
A contract between the Munk Foundation and the University of Toronto came under criticism due to the secrecy that shrouded its approval, and the fact that Munk's contribution of $35 million were conditional on $25 million contributions each by the federal government and the university. Coming at a time of downsizing and threats to the funding of other academic units, critics charge that these decisions are emblematic of the government's and the University's ceding of academic resource allocation decisions to the corporate sector.[33]
According toLinda McQuaig's book,The Trouble with Billionaires, Munk's donation to the University of Toronto came with strings attached to ensure that the school would "fit with the political views and sensitivities of Peter Munk." McQuaig writes that "according to Munk's written agreement with the university, the Munk donations will be paid over an extended time period, with much of the money to be paid years from now – and subject to the Munk family's approval of the school. For that matter, the school's director will be required to report annually to a board appointed by Munk 'to discuss the programs, activities and initiatives of the School in greater detail.'"[34][35][36]
University presidentDavid Naylor rejected personal attacks on donors as "a deplorable affront to the values of rational and respectful discourse that are supposed to characterize a university" and stated "I later served on the board of the University Health Network, in the years when Dr. Munk made two gifts exceeding $40 million to support the cardiovascular program at that hospital. There was not a single instance where Peter Munk interfered with the educational, research or clinical priorities of the institution."[37]
On September 3, 1956, Munk married Linda Joy Gutterson, the daughter of aForest Hill pharmaceutical entrepreneur who gave Munk the start-up capital to fund his first company. Linda was 19, not long out ofHavergal College; he was 10 years older. "'Linda tracked me down with a laser beam,' said Munk. 'I was a curiosity; I was different. Not because I was so great, let me tell you, I was fat, bald, poor, a boring engineering student.'"[38] The couple separated and reunited more than once in the 1960s, having three children and divorcing in 1970 but staying on very good terms. After the marriage was over, she pursued an academic career, becoming a professor of English at theUniversity of Toronto.[39][40]
On June 26, 1973, Munk married his second wife, Melanie Jane Bosanquet, in London with whom he had two more children.[41][42] She is the cousin ofCharles Palmer-Tomkinson, a British land-owner and Olympic skier. Munk skied for 71 years, and built with his wife in 1972 aski chalet calledViti Levu inKlosters, which they consider home. It overlooks the mountain ofGotschnagrat.[43]
His children are: Anthony Munk, a senior managing director atOnex private equity;[44]Nina Munk, a journalist and contributing editor forVanity Fair;Marc-David Munk, a physician and healthcare executive; Natalie; and Cheyne. In his late 70s Munk was fitted with apacemaker.[43]
In 2008, Munk praised Canada for being a place where he could come as an immigrant, without wealth, knowledge, language skills or a network and set up a successful business and grow it into an empire.[21]
Munk died in Toronto on March 28, 2018, at the age of 90.[45][46][47] The cause of death was not disclosed, but Munk had been dealing with heart problems for several years and wore a pacemaker.[48]
The Financial Post posthumously lauded him as "An entrepreneur with a Midas touch, he was one of Canada's most high-flying, international deal makers, with friends ranging fromBrian Mulroney andPrince Charles to the arms dealerAdnan Khashoggi and French billionaireBernard Arnault, as well as one its most generous benefactors."[49]
He received several honorary degrees:
He became Officer of TheOrder of Canada (the country's highest civilian honour) in 1993 and was promoted to Companion in 2008;[52] receivedThe Woodrow Wilson Award for Corporate Citizenship in 2002 (the first time awarded outside the U.S.); was inducted into theCanadian Business Hall of Fame, and theCanadian Mining Hall of Fame. In 2012 Munk was awarded theQueen Elizabeth II Diamond Jubilee Medal. His homeland awarded him the Commander's Cross with Star of theOrder of Merit of the Republic of Hungary in 2016.[50]
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