Moslson Cousins
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In the case of Molson Inc., we have a struggle for power and control. The problem arises when two cousins Eric Molson and younger cousin Ian Molson dispute decisions and the control of the company. “Eric Molsons side of the family held the majority of the shares and controlled the top operating positions throughout the latter half of the twentieth century. In 1988, Eric became the companys chairman and inherited his fathers voting shares in the company” (McCuddy). Eric was considered an introvert. He was shy in nature and often criticized for his business competence. However, Erics supporters claim that he deserves more credit than he receives in regards to his business competence. Eric was not particularly comfortable speaking to large crowds and this was considered a weakness for him.
Ian Molsons side of the family did not have as much legal control over the company as did Erics side of the family. Ians side of the family lost respect from Erics side of the family when Ians family sold the Montreal Canadiens hockey team in 1971. Ian desired to unseat his cousin as chairman and take his place as leader of Molson Inc.. “Ian Molson attended Harvard University were he was educated as an international banker. In 1996, Ian was elected to the Molson board of directors” (CBC News.ca). Ian was considered an extrovert. He was very aggressive and outspoken. He wanted the company to quickly advance and he had his own ideas on how that should happen. He accused Eric of putting the company endanger due to his incompetence. Eric often was confrontational, interrupting board meetings arguing his point over Erics. The tension between Eric and Ian grew and eventually led to Eric recommending Ian be terminated from his position as deputy chairman.
Ian confronted Eric over the situation and expressed how displeased he was with the recommendation. The board chose to deny the request for Ians termination. However, just five months later Ian and three other board members resigned from their positions in order to protest Erics position as chairman. Ian began to lobby against Eric in hopes to turn opinions against his cousin. However, Eric held his position as chairman and entered into a 6 billion dollar merger deal with Adolph Coors Co.. Ian was wholly against the merger but was unable to sway the decision. Ian and Erics conflict has been a major family feud.
1. From your perspective, were the consequences of the conflict between Eric Molson and Ian Molson positive or Negative? The consequences of the conflict were definitely negative,