Rogers Communications Inc. Chairman Edward Rogers had a plan that would have seen as many as 9 of 11 senior executives leaving the company, but it was blocked by members of his family who feared the move would create chaos just as the Canadian company tries to close a US $16 billion takeover.
The plan to remove Chief Executive Officer Ted Rogers and most of the company's senior team was shot down at a Rogers Board meeting last month, leaving a fractured family that pits Edward Rogers against his sisters, Melinda Rogers-Hixon and Martha Rogers, the children of late founder Joe Natale and Loretta Rogers, Ted s widow. But this video has failed to load. We apologize.
Click here to watch more video from our team. Now the family is trying to resolve their dispute before a board meeting that is scheduled to take place prior to the company s third-quarter results on Oct. 21, according to people familiar with the matter. What drives Edward Rogers to eliminate Natale? The company was hit harder by the pandemic, partly because of its reliance on revenues from wireless roaming and professional sports, both of which were crushed by COVID - 19 limitations.
On the other hand, Shaw Communications Inc. earned a landmark victory with the Natale takeover of Natale announced in March. The deal would expand Rogers Cable business across western Canada and widen its wireless lead in canada. Many analysts believe that Rogers will be able to make the deal next year if it s willing to make changes to satisfy regulators, including divesting some wireless assets. Graham Shaw's proposal would have seen Chief Financial Officer Tony Staffieri promoted to CEO and tasked with keeping the Shaw deal at the finish line. Most of the current senior executives would have been replaced, some being pushed out and others considered certain to resign. But it failed when a majority of the Rogers board left Natale in the dispute, according to people familiar with the matter, and People Shutted the company Sept. 29, stunning analysts, according to sources.
Rogers Communications spokesperson Melinda Rogers declined to comment, as did spokespeople for Andrew Garas and Andrew Garas. The people said Edward Rogers and Natale were to meet Wednesday afternoon. The board members are preparing for a meeting next week in which some directors might attempt to restrain Edward Rogers authority in the company. He s head of the Board Finance Committee, Director Nominating Committee, Executive Committee and the management committee of the Toronto Blue Jays baseball club, which has the company owned. That arguably gives him more direct control over the company s affairs than any of the Rogers family members. The voting power of Rogers Communications is held by a family trust.