The Fabulous Destiny of Clément Gignac

Ashleay: Hello and welcome to the “In Your Interest!” podcast. My name is Ashleay and, as usual, I’m joined by my colleague and Chief Strategist, Sébastien Mc Mahon. To celebrate the podcast’s 100th episode, we’re joined by a very distinguished guest: senator and economist, Clément Gignac. We’ll be discussing his career path and his transition from economics to politics. He’ll also share some tips for young economists who want to start their career in the field. Hi, Clément. Hi, Sébastien.

Clément: Hello, Sébastien.

Sébastien: Hey. How are you? It’s good to spend some time with you again, although virtually. Anyways, it’s great to see you.

Ashleay: Yeah, absolutely. So, Clément, kicking this off on a strong note, can you tell us about your early days as an economist and what motivated you to choose this career?

Clément: I think my passion for economics dates back to 1974, with my first Economics course in college. We should remind listeners that, back then, inflation suddenly exceeded 10% for the first time since the Second World War, due to an embargo, a shock and so on. I think that because my professor at that time taught both an Economics as well as a Political Science course made the economics very interesting and helped me understand what was going on. My father would talk about it, but many people had no clue exactly why inflation was accelerating so quickly. But my professor helped me understand. Later on, at university, the Chief Economist of National Bank, which at that time was called Provincial Bank, spoke to us. He explained what his days were like. It sounded exciting and interesting. And, interestingly enough, when I completed my master’s degree, the head of the department received a call from Desjardins Group about a job opportunity. So, I applied, was hired and I started my career at Desjardins.

Ashleay: Wow. And you’ve held a variety of increasingly senior roles, and even became Chief Economist at a relatively young age. What made you stand out from the crowd?

Clément: So before I answer your question directly, let me point out that I was hired as a Senior Economist at National Bank at 33 years old and became Chief Economist at 37. Now, to answer your question, my recipe has been a combination of hard work and a certain self-confidence. It’s important to be self-confident but not arrogant, because sometimes you could look arrogant if you’re overly self-confident. And I think the last thing is probably plain old good luck. In fact, I remember—going back to when I was 33 years old—when Henri-Paul Rousseau, my former teacher at university, was nominated Chief Economist at National Bank. He gave me a call to check if I was married to Desjardins Group at Lévis or if I was ready to move to Montreal with National Bank. So, it’s really a combination of good luck, hard work and probably self-confidence that helped me.

Sébastien: And let’s not overlook the fact that you put yourself in— well, “in danger” by going into finance at Lévesque Beaubien and becoming a strategist. You could have decided, “I’m just an economist; I’m going to follow the economic data,” but you pushed yourself, you got out of your comfort zone, and you learned finance on the fly. So I’m sure that helped.

Clément: Yeah, I think that’s because I’m curious by nature and I always want to be involved in the action. I remember, back then, the Bank of Canada didn’t choose the interest rate every six weeks, it was decided on a weekly basis. Or, I remember, on Thursday, I would go to the Treasury floor to chat with the traders about what my expectation about what the decision from the Bank of Canada would be. I’d be involved. And interestingly, at some point, the treasurer of the bank invited me to be part of the monthly meeting with these traders and other portfolio managers. So that influenced me because I was suddenly part of the team and that motivated me to move to Beaubien bank as a strategist. I think the fact that I was interested in discussing and very involved with the treasury and investment branch helped me get that position.

Ashleay: And what were the highlights of your career as Chief Economist? Whether at National Bank, iA Financial Group, whatever you want.

Clément: I’ll give one for each. So, at National Bank it was without a shadow of a doubt the start of the financial crisis in 2008. Keep in mind that it was the failure of Lehman Brothers, and they started a contagion effect in the market. I was 53 years old at that time. But guess what? I was the only non-executive VP around the table with the CEO because I was part of the Global Risk Committee. I remember how stressful it was back then. Even the automobile industry was having trouble financing themselves. So, we had to think outside the box. It was a very intense period. The other experience was at iA with you, Ashleay and Sébastien, as a matter of fact. I was Chief Economist and Portfolio Manager during the pandemic. At the outbreak of the pandemic, I remember the stock market dropped by more than 30% in 23 trading days. People thought the sun would stop rising. And I had to explain that the government and Central Bank have tools. And I have no doubt that my experience 13 years earlier in the Finance Department with the Central Bank helped me. So that was another intense period. But what an opportunity, from an intellectual point of view, as a Chief Economist to experience the global financial crisis and the pandemic as Chief Economist and Portfolio Strategist at iA. It’s like it was yesterday, talking about it now.

Sébastien: Yeah, we went through the pandemic together, and I remember the political side was asking the private sector its opinion was on what the best course. So, we kind of had to make things up on the spot. And then there’s the communication side, too. I remember that you were very busy with TV and radio interviews at the time. So, there’s a need for a strong communicator in these periods.

Clément: And, in fact, I remember, Sébastien, that our weekly capsule at that time had record engagement when we posted on LinkedIn. So, it was a very intense moment.

Ashleay: And Clément, what prompted you to make the transition from the financial sector to politics in 2009?

Clément: So, keep in mind that I’d already been involved in Ottawa because I left National Bank and went to Ottawa as a special advisor to the minister of finance. And at that time, I observed how Jim Flaherty worked because I had no clue how our politicians worked behind the scenes. Well, before going to the House of Commons or on TV, he had a cabinet full of advisors and government officials. So, I think the fact that I worked with Flaherty over seven or eight months helped me increase my comfort level and shift to active politics. And Monsieur Charest, who had already tried to recruit me into politics once already, tried again at that time because a by-election opportunity opened up when Madame Forget decided to leave politics. So, my comfort level had really increased. And it was, I have to say, a VIP treatment because I went to a Liberal riding. And the day after my election, I was nominated as minister of economic development. What an opportunity, because, quite frankly, I don’t think I would be a senator today if I hadn’t had that experience in politics. It really helped me understand everything that happens here in Ottawa.

Ashleay: Wow. Yeah. And what advice would you give young economists starting their careers today?

Clément: I think my first piece of advice applies to all young professionals in the job market: Have confidence in yourself, but don’t be arrogant. I think this is very important. The second is that you have to love what you do. Okay? Because you could be spending many long days working, particularly when you have an unexpected situation to deal with and that happens when you’re dealing with the economy, you have always crises here and there. And the third one, I think, would be—and this is more specific to economics—to get informed. It’s important, to follow seminars and to speak with your colleagues, as well—and sometimes even with your competitors, because it’s a friendship group, I would say, in terms of economics. In my case, I had the opportunity to be in an international network, what we call Conference of Business Economists, in Washington. So, three times a year I would exchange with my colleagues. All of this helps. Even at 69 years old, I’ve reached a point where I know a lot of things, but I learn every day. And it’s important to keep an open mind when you discuss with your colleagues.

Sébastien: But, here, again, I would also add that the communication aspect is very important. You might know everything there is to know about economics or finance, and have the best ideas, but if you’re not able to communicate them efficiently and in a way that people will understand, you’re only going to go so far. This is the tone that you brought to iA when you came here, when you taught me to communicate and the idea that you need to make sure people understand what you have to say, that you’re not there to showboat but to help people make sense of things. And it even influenced the format of this podcast, because iA’s brand lets our clients know that when you listen to us, you will understand. So your influence has been pretty strong, and we thank you for that.

Clément: You’re right on the fact that it’s important to explain to people in plain English. Even as a senator now, on my LinkedIn, I have the opportunity to explain where we are, we have received such and such witness about such and such bill, and this is my reaction, etc. So, part of my job, I think, or at least something I enjoy doing, is to really explain to people what the issues are about.

Ashleay: Absolutely. Well, that’s what concludes today’s episode. Thank you, Mr. Gignac, for telling us about your career path. And while today’s episode was focused on your journey in the economic sphere, we’ll discuss your journey in the political world in next week’s episode. Thanks also to Sébastien and to all our listeners. Please don’t hesitate to contact us if you have any questions. We’ll see you next week. Love this podcast? Want to know more about economic news? Follow our “In Your Interest!” podcast, available on all platforms. Visit the economic news page on ia.ca or follow us on social media.