PROFILE (March 09, 1992)

Next month President Michael Spoko, 53, will succeed retiring Donald Phillips to become Inco Ltd.’s chairman and chief executive officer. Asked as to why he was chosen for the top job, Sopko replies, “I happen to be in the right place at the right time and with the right background.” There is a vacuum to be filled as senior management, his mentor Walter Curlook for example, is approaching mandatory retirement age.

While Phillips’ forte is marketing, Sopko as chairman will put his operational expertise into good use. Inco reaped record earnings during Phillips’ reign, adds Sopko. “Now with depressed metal prices, our profits have come down and we have a different challenge.”

Sopko will face the challenge of maintaining Inco’s leadership position as a low-cost nickel producer and its one-third share of the nickel market in the non-communist world. “As the nickel market grows, we have to grow with it,” he says.

Sopko cites the high Canadian dollar as a factor pertinent to Inco’s profit margin. “Each 1 increase of the Canadian dollar decreases our pretax earnings by US$14 million within a year,” he says. “Since 1987, our dollar has appreciated from 74 to currently 84.5.”

As well, 50% of operating costs goes to employment, he adds, noting the need to “rightsize” the staff. “Inco has a mature workforce, whose average age is 47,” he says. “A lot of them are close to early retirement.” He attributes the reduction of employment levels largely to the company’s “earlier investments in technological advances: mine automation, process improvements and upgraded facilities.”

Technological advancement necessitates the upgrading of employees’ skill levels. Two and a half years ago, Inco established a training program jointly with Cambrian College in Sudbury, Ont. The 18-month program consists of classroom instruction and on-the-job training.

Out of 700-800 applications for each session, Inco selects about 50 candidates who have a minimum grade 12 or equivalent education and have passed aptitude, psychological and health tests.

Each candidate receives a salary; upon graduation, he is equipped for the industry either at Inco or another mining company which he may prefer, says Sopko. “The new knowledge acquired by these graduates provide an impetus for superintendents and advisers to upgrade their own skills.”

Sopko earned his bachelor’s, master’s and doctoral degrees from McGill University in the early 1960s. He joined Inco in 1964 and rose through the ranks to become president of the Ontario operations in 1984, vice-president of human resources in 1989 and president of Inco last year.

The early and mid-1980s marked the turnaround of Inco’ fortunes. Sopko notes his own contribution to the company’s financial performance, labor relations, SO2 abatement program and projects worldwide.

In Guatemala, some employees said on certain occasions unrelated to mining, “Mike does not understand me because he does not have a family,” Sopko recalls. Finally at 41, he married Mary, who has given him three children. How long will Sopko stay at the helm? CEO also means “career2Dending opportunity,” he says jokingly. “My challenge is to see the company grow profitably and realize maximum value for our shareholders.”