With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.
Issue link: http://digital.canadawide.com/i/740454
BCBUSINESS.CA NOVEMBER 2016 BCBUSINESS 25 What does a $350-million media/retail/real estate empire look like? Fairchild Group headquarters offers few clues. The nondescript offices sit atop an empty storefront in South Cambie, with pastel-coloured rooms and dark wood fur- niture that hasn't been updated since t he 1980s. Thomas Fung, t h e c o m p a n y 's 65-year-old chair and CEO, clearly has other priorities: "Things don't come easy; you have to work hard for it." Fung built his empire over 30 years in disparate businesses that include the Chinese- language Fairchild Media Group (which owns three radio stations, in Toronto, Vancouver and Calgary, as well as two national TV networks), Richmond's Aberdeen Mall, Saint Germain Bakery and Daiso. Growing up in Hong Kong, Fung and his family were so poor that they occasionally found themselves homeless—sleeping under stairwells while Fung's father, King Hey, chased low-paying labour jobs. Eventually, King Hey managed to launch a security brokerage firm Sun Hung Kai & Co with two close friends, and worked his way up to become the largest personal share- holder of Merrill Lynch. When King Hey died in 1985, Fung inherited less than a 10 th of his father's fortune. Unlike King Hey—who didn't have a full estate plan—Fung decided to set up a family fund shielding a portion of his assets from economic volatil- ity. And in preparing for succession at Fairchild Group, he has devised a plan whereby Joseph, his only child— now managing principal at Fairchild Management Capital (the company's investment arm, based in Hong Kong and focused on the Chinese market)— will be allotted 49 per cent of his shares; the remaining 51 per cent will be divided among key employees and friends. It's a structure that Fung hopes will motivate the team to sup- port his son and allow the 35-year-old to prove his management skills in the 1,000-person company. Before joining Fair- child in 2009, Joseph worked for seven years in finance and business development at Morgan Stanley in Singapore and New York and at Hong Kong's PCCW Media. In March, he also opened a nonprofit private school in Hong Kong—with Fairchild money—that teaches a Canadian-inspired, student- centred curriculum. "Joseph has very strong social skills," says Fung. "He's capable, he speaks six languages, he has very close relationships with politicians, business associates and working partners. One thing he has to strengthen is managing the staff." As a young father, Fung instilled frugality in Joseph by taking him on trips across Asia and South America to visit impoverished neighbourhoods. And he's proud to note that Joseph eschews business class airplane tick- ets and dining out at Michelin Star restaurants. Still, he did spring for his son's lavish 1,200-person wedding at the Vancouver Convention Centre last year—a seemingly out-of-character move for the famously thrifty titan. "In the beginning, I actually didn't want a big party at all. Nei- ther did Joseph," says Fung. He then chuckles aloud. "But then another thought came to me: Maybe I take that opportunity to introduce my associates to him and introduce him to my peers? Instead of doing it one by one, might as well do it all at once—in one day." Thomas Fung's Frugal Ways PURDYS Karen Flavelle's approach to succession at Purdys Chocolates is coloured by the approach her own father took with her. Twice he refused to let her join the firm, forcing her to work as a marketing execu- tive with firms including General Mills and Cara Operations. Finally, in 1994, he made her executive vice-president, and in 1997 sold her the business. Having a broad base of experience has helped Flavelle run Purdys, she believes, contributing to rapid growth that now sees it with about 65 stores in three provinces, a growing online presence and more than 1,000 employees. Also resonant for her is a conversation with someone who told her he'd been conceived to take over the fam- ily business and has hated every moment of it. Accordingly she has encouraged her own three children, currently in their 20s, to go do whatever they want–"and maybe it will lead them back to the business, maybe it won't." With any handover likely Company veteran, boss's kid or talented upstart? Several of B.C.'s top firms have long- standing leaders who must be wondering: Who's next?