CALGARY – As has been expected, Brad Shaw, the younger brother of CEO Jim, has been appointed chief executive officer of Shaw Communications, effective January 13, 2011. After 12 years as CEO, Jim has decided to step down and recommended Brad as his successor, the company reported this morning.
The younger Shaw fils has been taking on more of a public profile for the last 12 months or so, appearing at a number of industry events, even leading the Shaw team through much of the Shaw-Canwest purchase hearing in front of the CRTC in September.
(We even speculated, correctly as it turns out, then that it would be the last time in front of the Commission as CEO for Jim.)
Brad has been an employee of Shaw Communications for about 23 years, moving through a succession of positions in the company, most recently as EVP. He’s also been a member of the board since 1999.
He actually started as a customer service rep in 1987 (Jim started on the front lines too, installing cable services). "I learned how important it is to treat people fairly and with respect. We are only as good as our customers say we are; we have to treat them like gold if we want to succeed,” Brad said in the press release announcing his appointment.
He moved to managing a number of the company’s cable systems and in 1997 was appointed VP operations for British Columbia and later, its eastern Canada operations, before they were sold. In February 2001, Brad was put in charge of Star Choice and led its operations until January 2004 when he was appointed SVP operations for Shaw Cable.
"I am honoured to follow JR and Jim as chief executive officer of Shaw Communications. They have set a high standard of commitment and delivery for our customers. We have built a strong culture for our employees, and have a strategic focus and a tradition of prudent financial management for Shaw,” said Brad in the press release. “We have a strong balance sheet that provides a platform for growth and continued success. Their wise counsel is readily available to our management team as we deal with our first major challenge, integrating the Canwest/Global assets into our business and managing them to deliver superior value for our shareholders."
He lives in Calgary with his wife and four children.
Company founder and father of both Jim and Brad, JR Shaw, isn’t going anywhere in the move and will be staying in his official role of executive chair (and unofficial role as the company sage who knows, well, everything… JR is still a regular fixture at the company’s HQ).
Peter Bissonnette will continue in his role as president and a member of the board of directors. He has been directly involved in Shaw Communications’ growth and success for 20 years, the last 10 of which as president.
"Over my 12 years as CEO, I have led a first class team that delivered an unprecedented period of growth and expansion for Shaw, culminating with the $2 billion acquisition of the Canwest/Global TV and specialty channel assets,” said Jim Shaw in the release.
“We have been notified that the decision will be released by the CRTC today (at 4 p.m.). I believe it is time to pass the torch on to a new leader who will take us to the next level. It is now Brad’s time to lead Shaw Communications into the future. I look forward to focusing my energies on my board duties as we deal with the exciting future that this acquisition offers. The possibilities are endless."
"I have been privileged to spend the last 20 years working with Jim and Brad Shaw and am pleased to continue this relationship as we transition to a new leadership team. It is now time for the heavy lifting to shift to Brad,” added Bissonnette.
"Both Jim and Brad have grown up in Shaw; they started on the front line, learned every aspect of the business from the ground up and have taken on increasingly senior management and executive responsibilities over several decades,” said JR Shaw.
“They know every part of the industry and the business. Their detailed knowledge of every facet of our operations, their dedication to serving our customers, their prudent and disciplined operational experience and their strategic focus will provide a solid base for Shaw Communications as it takes on new challenges. Peter’s sound business acumen is valued and we will continue to take advantage of his experience as we take on the challenges and opportunities flowing from our wireless and content initiatives. Brad will now take Shaw forward into a very promising future."
The press release also set out the accomplishments of Jim and Shaw as a company over his past 12 years as CEO. We highlight it here because the amount of growth and change in those dozen years is staggering.
• In the 12 years of Jim Shaw’s leadership as CEO of Shaw Communications Inc., the share price of Shaw Communications has risen at an annual growth rate of 11%.
• Revenue grew from $646 million in 1998 to $3.7 billion in 2010. Over the same period, EBITDA grew from $272 million to $1.8 billion.
• Market capitalization more than doubled in the 12 years from 1998 to 2010, and now stands at $10 billion.
• Shaw Communications began returning capital to shareholders in the form of dividends in 2003 with a $.03 per share annual dividend. Since that time the annual dividend per share has risen to $.88.
• In addition, annual equivalent dividend payments have steadily risen to reach approximately $372 million in 2010.
• In 1998, Shaw served about 18% of Canada’s cable market; today they serve more than 30% and are the largest cable provider in Canada.
• Basic Cable customers have increased from 1.5 million to 2.3 million.
• Digital cable customers have increased from 70,000 to 1.7 million.
• Internet customers have increased from 46,000 to 1.8 million.
• Digital phone was launched in 2005 and now has over 1.1 million customers.
Other landmarks during Jim’s tenure as CEO:
* 1999 – Shaw creates Corus Entertainment Inc., separating specialty channels, radio and broadcasting assets from Shaw’s cable and transmission assets.
* 1999 – Shaw acquired several cable companies in Atlantic Canada including Fundy Cable, Access and Halifax Cable; later sold in 2001 as Shaw consolidated its operations in western Canada.
* 2000- Shaw successfully concluded an asset swap with Rogers for territory in Vancouver/lower mainland reinforcing its prominent position in western Canada.
* 2000 – Shaw launched Big Pipe creating a fibre-optic backbone for all its operations, expanded with the purchase of assets of 360 Inc.
* 2001 – Shaw acquired Moffat Communications for $1.2 billion – adding broadcast, specialty, cable and U.S. assets.
* 2001 – Shaw acquires Canadian Satellite Communications giving it 100% of Star Choice DTH satellite and specialty channels.
* 2001 – Shaw initiated an extensive build out and upgrade of infrastructure including fibre-optic networks, digital service expansion, DOCSIS 2.0 internet upgrades, new service offerings like PPV, expanded data management centers, upgraded IT services.
* 2002 – Shaw announced the construction of Shaw Tower in Vancouver, a 41 storey tower completed in 2006; it also builds its Calgary Barlow Trail Operations/University Campus.
* 2002 – Shaw launched Video on Demand service.
* 2003 – Shaw sold U.S. cable assets for $300 million, acquired Monarch cable in southern Alberta/BC.
* 2004 – Shaw upgraded Star Choice service with Anik F2, expanding PPV and HDTV.
* 2005 – Shaw launched Shaw Digital Phone in several major western cities.
* 2005-2007 Shaw pursued major upgrades to internal systems, internet speed capability, including one of the highest speeds available in Canada, digital and HDTV upgrades, PPV and VOD customer offerings, and IT and infrastructure upgrades to serve these new innovations.
* 2008 – Shaw acquired $200 million of mobile spectrum in Government auction to launch a Shaw wireless phone service in 2011/12.
* 2009 – Shaw acquired Mountain Cable in Ontario and several BC cable assets including Campbell River.
* 2009 – Shaw commenced an upgrade to DOCSIS 3.0, the fastest service in North America.
* 2010 – Shaw acquired Canwest Global TV for $2 billion, national broadcast TV and specialty channel company with final regulatory approval expected today.
