The board of Rogers Communications voted to remove Edward Rogers as chairman, the company said on Thursday, amid a tussle between the family members of late founder Ted Rogers over who should lead one of Canada’s biggest telecoms companies.
Edward Rogers’ exit caps a choppy time for the company after he attempted to replace Chief Executive Officer Joe Natale with the company’s former chief financial officer in late September, a move that put him at odds with his sisters and mother, all of whom are fellow board directors and said they supported Natale.
The family feud to erupt into the open in the Canadian corporate landscape sparked a review of Rogers’ corporate governance with experts saying the episode highlighted the need for strong independent directors.
The boardroom tussle caught investors and analysts by surprise just as Rogers was negotiating its biggest ever takeover.
John A. MacDonald, the independent board director who replaced Edward Rogers as chair, said in a statement this has been a challenging time for the company.
Edward Rogers will remain a director, the company said in a statement. He is chair of Rogers Control Trust, the family-controlled entity that holds voting control in Rogers Communications.
The C$20 billion ($16.2 billion) bid for smaller rival Shaw Communications would further boost its position in Canada’s highly concentrated telecoms market and has attracted scrutiny from multiple government regulators over whether it will decrease competition.
