VANCOUVER – Change is afoot atop Telus, kick-started Monday morning by the surprise announcement that president and CEO Darren Entwistle is stepping aside from the role that he has held since 2000.
He will be replaced by Telus veteran executive Joe Natale effective May 8, when the company holds its annual general meeting for shareholders.
At that time, Entwistle will be named as executive chair of its board, following the retirement of chairman Brian Canfield, who has spent 58 years with Telus and predecessor company BC Tel. Canfield will be honoured with the chairman emeritus distinction.
Natale, (pictured), joined Telus in 2003 as an executive vice president and took on increasingly expansive roles, including president of Telus Business Solutions and president of Telus Consumer Solutions. Since 2010, he has served as chief commercial officer where he has led a team of over 25,000 responsible for providing consumers with wireless voice and data services and home phone, internet and television, as well as businesses with communications, data network and IT solutions. Natale will also join Telus' board of directors, reporting to Entwistle, and will continue to be based in Toronto.
When Natale joined Telus, its employees numbered in the hundreds. Its growth in Eastern Canada has been huge.
"I am very pleased that our best in class succession planning process has resulted in Joe Natale being named as our next president and CEO and am excited to continue working with him in leading the progression of our national growth strategy”, Entwistle said in a statement. “Joe is an exceptionally proven and highly capable leader. Clearly, Joe's excellent progression through several executive roles, culminating in his most recent capacity as our chief commercial officer, has prepared him exceedingly well for this next step in his career.”
"Telus is a highly recognized global leader on multiple fronts that span from shareholder value creation through to caring for our communities”, added Natale. “I look forward to working closely with Darren and the Telus executive leadership team to further the progression of our national growth strategy and in particular, to continue advancing our top priority of always putting our customers first."
Dick Auchinleck, who joined the Telus board in 2003, will become lead director to provide leadership designed to foster the effectiveness of the board in conjunction with Entwistle, while ensuring that the board functions independently of management as and when required.
Managing director/head of research for Canaccord Genuity Dvai Ghose called Entwistle “the strongest CEO in the sector” and attributed his success to “choosing the right investments at the right time, regardless of popularity”. Ghose listed Entwistle’s achievements as “1) successfully acquired Clearnet; 2) drove a solid HSPA overlay with Bell; 3) created arguably the best wireless carrier in North America; 4) established a strong national broadband footprint; 5) successfully pioneered Telus TV; and 6) developed a unique dividend growth model.”
Ghose also offered his stamp of approval to Natale, who he says should “take a lot of credit for Telus’ numerous successes in the wireless and wireline arenas”.
“We also believe that this handover is coming at a relatively stable time”, continues Ghose’s note to clients. “Telus’ IPTV strategy is complete and successful, wireline EBITDA is growing again and Telus Mobility remains in strong shape despite regulatory challenges. The balance sheet is strong and Telus seems well positioned to continue to deliver on its dividend growth model.”
He added that Telus’ stock remains his company’s top pick.
– Lesley Hunter
