Rogers Communications has been embroiled in a heated internal power struggle since late last month, when chief financial officer (CFO) Tony Staffieri suddenly departed the company.
Edward Rogers, son of the company’s founder Ted Rogers, had no plans to roll over. In response, Mr. Rogers used his influence as chair of the Rogers Control Trust, which maintains voting control of the company and owns 97.5% of its voting Class A shares, to call for the removal of five independent directors on the company’s board who opposed him.
Mr. Rogers planned on replacing those directors with individuals whom the Rogers Control Trust would later nominate.
Not that the board of directors is letting it get to that, though — on Friday, the Rogers board issued a statement acknowledging receipt of a resolution from the Control Trust that mandated removal of five of the directors, but deemed the resolution “invalid”.
“The Board of Directors of Rogers, including its independent directors, remain unchanged. The Company’s CEO, Joe Natale, and management team remain steadfast in their commitment to driving the performance of the business and executing on the proposed merger with Shaw,” reads the statement.
Ted Rogers’ wishes for his family to have control of the telecom giant he built have not only left the highest levels of management in disarray, but have also caused feuds within the family, reports The Globe and Mail.
There couldn’t have been a worse time for the Rogers board and the Control Trust to be at odds — the telco is seeking to close a $16 billion USD takeover of Shaw Communications, which is currently being reviewed by Canadian regulators.