Rogers CEO shakeup raises questions on future of exec team
BNN Bloomberg
A day after Rogers appointed Tony Staffieri as its interim CEO, pushing out Joe Natale in the process - the next question investors and industry observers have for the telecom giant is what could happen to the company's senior management team ahead of its $20B takeover of Shaw
A day after Rogers Communications Inc. (RCI) appointed Tony Staffieri as its interim chief executive officer, pushing out Joe Natale in the process, the next question investors and industry observers have for the telecom giant is what could happen to the company's senior management team ahead of its $20-billion takeover of Shaw Communications Inc.
While analysts describe Staffieri as a respected manager and well-versed with RCI during his nine-year tenure as the company's chief financial officer, there is still uncertainty over whether other executives loyal to Natale will stick around to see the Shaw deal close.
"We now wait to see if Tony Staffieri turns his interim status into a more permanent role as the next CEO of Rogers or whether a completely new regime will be called upon to preside over the company's next critical chapter," said National Bank Analyst Adam Shine in a note to clients on Wednesday.
Chair Edward Rogers already outlined his plans for a major management shakeup in documents filed in a British Columbia court late last month ahead of a hearing to determine if he had the authority to appoint new directors to RCI's board without holding a shareholder meeting.
In an affidavit, Mr. Rogers said he planned to appoint two new co-chief operating officers: Robert Depatie, a company director and former CEO at rival Quebecor Inc., to run the company's cable division; and Dave Fuller to run Rogers' wireless business from his current role as president of the division. However, Fuller said in a separate court filing he would resign from RCI if Natale was dismissed as CEO, raising questions if other executives loyal to the former chief executive would follow suit.
While an RCI representative wasn't immediately available to comment on the company's current management plans, it will likely be a focus for regulators ahead of the company's hearings with the Canadian Radio-television and Telecommunications Commission next week to discuss the Shaw deal. Mr. Rogers and Staffieri both plan to attend.
