Natale and board unable to reach “mutually agreeable arrangement.” Search is on for permanent replacement
TORONTO – Joe Natale is out as CEO of Rogers Communications Inc. (RCI) effective immediately, RCI announced Tuesday night.
Tony Staffieri has been appointed interim president and CEO, a press release says. Staffieri is also a candidate for the permanent position, which RCI’s board is now looking to fill, according to the release.
“On behalf of the Rogers family, the Board and our 24,000 team members across the country, I thank Joe for his leadership and contributions to our company, including paving the way for our future together with Shaw,” said Edward Rogers, chair of RCI, in the press release.
“While Joe is moving on, we have an experienced interim CEO and leadership team who will continue to focus on the business, return to stability, and closing our transformational merger with Shaw.”
“It is a real privilege and honour to be assuming the role of Interim President and CEO for Rogers and I am excited to be working in this new role with the Rogers family, the Board, the leadership team and our colleagues from coast-to-coast-to-coast,” Staffieri said. “Rogers has been successfully built over the past 60 years as a result of the hard work of tens of thousands of employees, and I am looking forward to building on the legacy Ted Rogers established for this company and for Canada.”
Court documents show the change in CEOs has been in the works for a while now. Mr. Rogers and several RCI board members have had concerns with Natale for some time and Mr. Rogers supported Staffieri as his replacement.
An initial attempt by Mr. Rogers to make this change in CEOs led to him being voted out as RCI chair, removing five board members in his capacity as chair of the Rogers Control Trust, appointing new members and then defending his right to do so in the Supreme Court of British Columbia.
Mr. Rogers won the court case and the changes he made to the board were declared valid, a ruling RCI chose not to appeal. The court ruling further meant a board vote to reinstate Mr. Rogers as chair of the RCI board was also valid.
Following the court’s decision, Mr. Rogers said in a statement Natale had the board’s support. This statement was reiterated in a document RCI submitted to the CRTC Nov. 8. Martha Rogers quoted his statement on Twitter Tuesday night, followed by the words “Guess he didn’t pinky swear.”
Robert Gemmell, lead director of the RCI board released a statement by email Tuesday night, which said the RCI board met that night “to resolve outstanding management issues, express a renewed commitment to operational and financial excellence, and expedite the closing of the transformational Shaw transaction.” He noted the board expressed its support of Natale as CEO after the B.C. Supreme Court decision, after which it “worked earnestly and in good faith to establish a constructive working relationship that would see Mr. Natale remain in his position through the closing of the Shaw merger,” Gemmell said.
“Unfortunately, a mutually agreeable arrangement could not be reached.” A Globe and Mail report Tuesday evening suggested Natale objected to the return ot Staffieri.
Gemmell indicated in his statement the board showed “overwhelming support” for Staffieri’s appointment as interm president and CEO. “Mr. Staffieri is an established and well-respected financial executive, recognized for driving value-focused efficiencies, delivering balance sheet improvements, and originating key financing arrangements,” he said.
“Given his long history with the company and impeccable reputation with lenders and the market more broadly, Mr. Staffieri is the ideal candidate at this critical juncture to lead the business to improved performance and shepherd the company through the closing of the Shaw deal and integration of the business.”
RCI said Tuesday night the Shaw transaction is moving forward as planned, and according to its press release, Natale is still excited about the deal.
“I am grateful for the opportunity to lead Rogers Communications through a critical time in its history and remain excited about the transformational potential of the Shaw transaction. It has been a privilege to build a team of such extraordinary character and ability and I wish each of our 24,000 team members continued success and good fortune in the future,” he said.
