Key Highlights

  • Power Corporation's insurance, retirement and Wealth holdings generate large Revenue across a group of more than 41,200 people, placing it among Canada's highest revenue per employee names.
  • Because it consolidates operating companies of very different types, the ratio blends insurance premiums, Investment results and fee income and says little about any single employee.
  • Portfolio simplification, record adjusted Earnings Per Share and a steady pace of Capital returns shape how the metric and the group may develop.

Company Overview and Business Model

Power Corporation of Canada (TSX:POW) is an international management and Holding Company founded in 1925, focused on financial services in North America, Europe and Asia. Its publicly traded operating companies are Great-West Lifeco, IGM Financial and GBL. The shares trade at a current share price of CAD 95.65.

As of June 30, 2026, Power owned 68.6% of Great-West Lifeco and 63.9% of IGM Financial, and held 17.5% of GBL through the jointly controlled Parjointco. Great-West Lifeco provides insurance, retirement and wealth services, while IGM Financial is a Canadian wealth and asset manager.

Beyond these holdings, the group builds alternative asset platforms. Sagard, in which Power holds 44.6% of the management company, had Assets under management of US$46.9 billion after the Unigestion Acquisition closed on April 2, 2026. Power Sustainable focuses on decarbonization investments, and Power also holds a 40.7% fully diluted interest in Wealthsimple.

The model produces diversified earnings from dividends, fee income and gains across businesses with different cycles. It also leaves the parent exposed to decisions made at its subsidiaries, because consolidated revenue is largely generated by companies it controls but does not operate day to day.

Revenue Per Employee: A Key Measure of Operational Efficiency

Revenue per employee, applied to a holding company, measures how much consolidated revenue is produced relative to the total workforce of the group. For Power it is a blended measure that spans insurance, retirement, asset management and Fintech platforms.

Based on the financial year ended December 31, 2025, Power Corporation reported consolidated insurance revenue of approximately CAD 22.3 billion, a net investment result of approximately CAD 3.2 billion and fee income and other revenues of approximately CAD 13.3 billion, with more than 41,200 employees across the group.

Revenue Per Employee = Annual Revenue ÷ Total Employees

On the basis applied here, Power Corporation generated approximately CAD 1.35 million in annual revenue per employee.

Definitions matter here. Insurance revenue, investment results and fee income are different in nature, and each can be presented under various accounting measures, so the figure depends on which lines are counted as revenue. Independent advisors and contractors are not part of the employee count.

Acquisitions, divestitures and the treatment of partly owned businesses such as GBL and Wealthsimple also affect the comparison. The metric describes the scale of the group and is not a measure of individual output.

What Drives the Company's High Revenue Per Employee?

Several features of the group's structure help explain the high level of revenue attached to each employee.

Scale in Insurance and Retirement: Large in-force books and retirement plan assets at Great-West Lifeco produce premium and fee revenue with limited additional staffing.

Asset-Based Fees: IGM Financial assets under management and advisement of CAD 343.3 billion generate recurring fees that grow with markets and flows.

Lean Parent Company: The holding company itself employs few people, yet it consolidates the revenue of much larger subsidiaries.

Platform Technology: Wealthsimple, which reached 3.6 million clients and CAD 155.6 billion in assets under administration, serves a large client base through digital channels.

Investment Income: Portfolio returns and the net investment result add revenue that does not require proportional hiring.

Nonetheless, revenue is not profit. Claims, distribution costs, restructuring charges and market swings determine what remains for shareholders.

Risks Investor Needs to Consider

Market Sensitivity: Fee income and investment results move with stock and Credit markets, so a downturn could reduce revenue and earnings together.

Insurance Experience: Mortality, longevity, lapse and morbidity assumptions can turn against the group and force reserve changes.

Subsidiary Dependence: Power relies on dividends and value from controlled companies, and their performance or capital needs can restrict flexibility.

Integration and Restructuring: IGM Financial recorded restructuring charges of CAD 70.1 million after tax in the second quarter of 2026, and acquisitions such as Unigestion and Milliman's retirement business bring execution demands.

Regulatory and Currency Factors: Capital rules, taxation, and operations across Europe, Asia and the United States expose results to rule changes and exchange-rate shifts.

A weak economy could also reduce the pace of new business and asset gathering.

What Does the ESG Investment Case Look Like?

For a financial holding group, sustainability is expressed through investment choices, client treatment and oversight of controlled companies.

Environmental: Power Sustainable invests in decarbonization, sustainable cities and resource efficiency, while insurers and asset managers face scrutiny over the climate effects of their portfolios.

Social: The group contributed CAD 49 million to more than 4,000 charitable organizations in 2025, and client protection, fair advice and workforce development are core themes.

Governance: Oversight of several controlled public companies, related-party transactions and a long-standing investment philosophy that stresses governance are central to confidence among minority holders.

The case rests on measurable outcomes in capital stewardship and responsible investing rather than stated intentions.

Latest Corporate Developments and Growth Catalysts

Power reported second-quarter 2026 adjusted net earnings of CAD 974 million, or CAD 1.55 per share, up from CAD 883 million, or CAD 1.38 per share, a year earlier, and described this as a record on a per-share basis. Net earnings attributable to participating shareholders were CAD 690 million, or CAD 1.10 per share, compared with CAD 772 million.

Great-West Lifeco's adjusted net earnings rose 11% to CAD 1,270 million with an adjusted ROE of 19.3%, and IGM Financial posted a record CAD 330.0 million. Empower agreed to buy Milliman's retirement plan and benefits administration business for US$340 million.

Through June 30, 2026 Power returned CAD 1.5 billion to shareholders, split between CAD 0.8 billion of dividends and CAD 0.7 billion of share repurchases. A quarterly Dividend of 66.75 cents per share was payable on October 30, 2026.

Portfolio simplification continues, including an agreement to sell LMPG Inc., and GBL launched a tender offer for Recordati together with CVC Capital Partners, expected to close in the fourth quarter of 2026.

What Investors Need to Watch Next

The third-quarter 2026 results are scheduled for November 11, 2026, and will show how earnings at the operating companies and the alternative platforms evolved since mid-year.

Completion of the Milliman, LMPG and Recordati transactions will alter the group's mix and may change both revenue and headcount, which makes year-to-year ratio comparisons harder.

Developments at Wealthsimple and Sagard, including client growth and fundraising, are worth following as they widen the fee-based side of the group. Shares fell 0.98% in the latest session.

Over time, earnings quality, capital allocation and the pace of Buybacks matter more to shareholders than the revenue spread across the workforce.