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Outspoken Maple Leaf Foods CEO gaining public support for criticism of Trump

Published 2020-01-16, 09:36 a/m
© Reuters.
MFI
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Brenda O’Farrell

Investing.com – If most Canadians did not know who Michael McCain was last week, they recognize the name this week. There are even many Americans talking about him, too – especially in Washington.

In less than seven days, the chief executive officer of Maple Leaf Foods (TSX:MFI), Canada’s largest publically-traded food processing company, has made headlines on both sides of the border – from Canada’s Globe and Mail and National Post, to The New York Times and CNN in the States.

The reason is McCain turning to Twitter to post what he called his “personal reflections” last Sunday in the wake of the downing of the Ukrainian International Airline Flight 752 that killed all 176 aboard, including 57 Canadians. Among the dead were the family of one of McCain’s colleagues.

His scathing public criticism of the U.S. administration and President Donald Trump – without specifically naming him, but referring to him as the “narcissist in Washington” – was an eyebrow-raising move that stood in stark contrast to the customary try-to-avoid-controversy style that characterizes Canadian corporate comportment. Was it a bold move? Or inappropriate? Will Maple Leaf Foods pay a price? These are the questions that are now being debated.

At first, the straight-talking executive and billionaire was harshly criticized by corporate communications experts and public relations specialists for using his company’s Twitter account to share his comments that blamed Trump for ratcheting up tensions with Iran that resulted in the missile attack that blew the jetliner out of the sky.

Then, the criticism turned to how all this attention would affect Maple Leaf Foods, which operates plants in the U.S.

Now, the tide is turning, and McCain is being praised for his courage to put principle before profits and speaking out.

“Let’s give Michael McCain, CEO of Maple Leaf Foods, a break,” was the headline in the Toronto Star on Monday.

Others, including Canadian Prime Minister Justin Trudeau, are joining McCain in publicly linking Trump’s decision to stoke tensions with Iran with the collateral damage that has ensued.

In a televised interview on Global News Trudeau said: “If there were no tensions, if there was no escalation recently in the region, those Canadians would be right now home with their families.”

“Michael McCain … grabbed the limelight but he was not alone in blaming U.S. President Donald Trump for pushing a domino that went on to knock a passenger jet filled with Canadians out of the sky,” was the opening paragraph of a story in yesterday’s National Post, which went on to quote U.S Congresswoman Jackie Speier, who referred to the plane crash as “collateral damage” caused by Trump’s actions.

As for the markets, Maple Leaf Foods closed up just over 2% yesterday. The stock dipped slightly in the hours after McCain’s comments were made on Twitter, but have bounced back. Yesterday, they were trading at a high of $25.42 before closing at $24.99.

In the last year, the company's shares are down 10.87%.

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