2 May 2013
Letter to the Minister of Finance
The Hon. James M. Flaherty, P.C. M.P.
Minister of Finance
140 O'Connor Street
21st Floor, East Tower
I am writing on behalf of the Directors of the Bank of Canada appointed under Section 9 of the Bank of Canada Act (the “Act”). The Directors met as a Special Committee on 2 May 2013, and adopted a resolution pursuant to Section 6 of the Act, appointing Mr. Stephen S. Poloz as Governor of the Bank of Canada effective 3 June 2013, to succeed Mr. Mark Carney, who has resigned as Governor of the Bank to assume the role of Governor of the Bank of England effective 1 July 2013.
The appointment takes effect with the approval of the Governor in Council (in accordance with Section 6 of the Act). For assistance in arranging for approval of this appointment by the Governor in Council, I enclose a certified copy of the resolution of the Special Committee and a draft Order-in-Council.
The recruitment and decision-making process followed by the Directors is described below. The Directors were assisted in the search process by Odgers Berndtson, an executive recruitment firm. By way of background, Odgers Berndtson was engaged to provide executive search services to the Bank of Canada in June 2012 following a competitive process.
A Special Committee composed of the Directors appointed under Section 9 of the Act was established, and the recruitment process was formally initiated at the December 2012 Board meeting. This process included placing the notice of the recruitment search in national newspapers, in an international economic publication and in a posting on the web sites of the Bank and the Government. By the end of February, a fulsome “long” list of interested and qualified candidates had been developed.
We were fortunate in having interest expressed by candidates whose depth of knowledge and experience made the decision a challenging one. The calibre of candidates also reflects the esteem in which the position of Governor of the Bank of Canada is held.
A Sub-Committee of the Special Committee was formed and curriculum vitae of long list candidates were reviewed. The Sub-Committee determined a shorter list of candidates, who were interviewed by the Sub-Committee in early March. Further consultations among Directors led to the selection of candidates who were invited to make presentations to the Special Committee in early April. Members of the Special Committee have deliberated and come to their decision to appoint Mr. Poloz.
Mr. Poloz has significant knowledge of financial markets and monetary policy issues and extensive management experience. We are confident Mr. Poloz will make an outstanding contribution to the work of the Bank and uphold its reputation as a leading central bank.
Mr. Poloz brings wide ranging experience across several organizations. During his 14-year term with the Bank of Canada, he served as Chief of Research during the change to the focus on inflation targeting as the basis of a new policy framework. At Export Development Canada he played an integral role in helping to ensure the survival of many Canadian businesses at a time when conventional bank lending froze. His ability to successfully lead a complex financial Crown corporation has been substantially demonstrated in his current position as the CEO of EDC.
Mr. Poloz obtained a Ph.D. in Economics from the University of Western Ontario focused on monetary theory and policy. His many noteworthy experiences include being a Visiting Scholar at the International Monetary Fund and a Visiting Scholar at the Economic Planning Agency in Tokyo.
I would be pleased to discuss any aspect of this appointment with you.
David H. Laidley