Life comes at you fast. One day, you’re chatting with BNN Bloomberg about how swell your company is performing; the next, you’re in the unemployment line.
What happened: One of Canada’s biggest tech companies, Open Text, canned CEO Mark Barrenechea, ending his 13-year tenure at the company. Shareholders were disappointed in growth under his reign, and the board is now exploring new strategies, including selling off parts of the company.
- Shareholders were also skeptical of Barrenechea's hefty pay package — he had the sixth-highest compensation of Canadian CEOs in 2022 and had the 11th-highest in 2023.
Catch-up: Open Text is one of those classic companies that you likely know is a big deal but aren’t sure what it does. Well, it’s a software provider specializing in information management, with a client base ranging from snack food companies to arms manufacturers.
However, the company had mainly achieved growth under Barrenechea by snapping up companies rather than expanding revenue from existing businesses.
- This strategy hit a snag in a higher interest rate environment. Though Barrenechea pivoted to focusing on organic growth last year, it was too little too late.
Why it matters: Even as Canada’s tech sector grows, there’s still a shortage of tech giants. Open Text is one of just eight Canadian tech firms with a valuation over $10 billion, giving it a sizable impact on the Canadian market and tech landscape.—QH