Business & Investment

Independent Directors Support Edward Rogers’ Allegations of Long-Term Concerns About The Company’s CEO’s Performance

“The debate over Joe’s performance didn’t start with Edward. Several directors, including myself, were concerned for months and even years.

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Rogers Communications Inc since 2017. Rob Gemmell, a veteran senior investment banker who serves as an independent director of the company, said on Wednesday about the company’s CEO Joe Natale’s performance, “the number of months before the attempt to replace him in September was stopped. Year”.

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“The debate over Joe’s performance didn’t start with Edward. Several directors, including myself, were concerned for months and even years,” said a member of the company’s Audit and Risk Committee. Jemel, who was also the chairman and ran Citigroup’s Canadian investment banking division until his retirement in 2008, said.

“As Chairman of the Board, Edward has always considered carefully and acted in favor of consultation,” said Jemel.

The statement, with support from longtime family close friends Phil Lind and Alan Horn, overhauls the company’s board of directors in an affidavit filed by Edward’s mother Loretta in a British Columbia court. As part of his efforts, it will be issued the day after he accuses him of saying “not true.” The result of a rebellion against his plan to replace Natale with the CEO.

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A strange state of corporate governance, in which the two factions claim that different boards are in command of a $ 30 billion telecommunications company, was addressed in a swift hearing on November 1 at the British Columbia Supreme Court. Will be done.

The statement from Edward’s supporters, issued together prior to next week’s hearing, is in stark contrast to the statement from John McDonald, chairman of the board of directors who replaced Edward in the company and its role. bottom.

McDonald’s states that a majority of the board supports Natale, and he and his management will remain “solid” in their commitment to drive business performance and implement the proposed merger with Shaw. increase.

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Jemel, who retired as CEO of Citigroup Global Markets Canada after more than 20 years in investment banking operations such as Stint, Merrill Lynch and Morgan Stanley, said in a statement Wednesday that Edward’s changes to the board were “Rogers Communications.” Governance “.

Companies and families are at a crucial time for Rogers Communications, which is in the midst of billions of acquisitions of rival Telecom Shaw Communications Inc.

“For the benefit of all stakeholders, I will be able to work on improving operational and financial performance of RCI (Rogers Communications), ending Shaw transactions, and returning to Rogers’ leadership position. We urge you to stop false attacks. The Canadian telecommunications industry, “said Gemmell.

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Jemel, a veteran board member who was re-elected to the board of directors of Agnico Eagle Mines Ltd. in April, said he had joined the Rogers board to serve “the interests of all stakeholders.”

He will be replaced by the director’s position in connection with recent events at Rogers Communications and Natale’s plans to resign, and then Chief Financial Officer Tony Stafieri. Said that it was a matter of public records. event. “

Edward Rogers said in an affidavit filed this week BC that 10 out of 11 directors accepted Natalie’s resignation and voted in favor of replacing him with Stuffieri.

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In the aftermath, Stafieri was dismissed and Edward Rogers was stripped of his position as chairman of the company’s board of directors, but he was chairman of the Rogers Control Trust and his family had Class A voting rights in the company. It controls nearly 98% of the shares. .. He has been replaced by five independent directors of Rogers Communications (excluding Jemel) because of opposition from directors, including his mother and sisters Martha Rogers and Melinda Rogers Hixson. He seeks to resolve the dispute in a British Columbia court where Rogers is incorporated by confirming Rogers’ ability as chairman of the Rogers Control Trust to overhaul the board.

Loretta Rogers and others associated with the company challenged the content of Edward’s affidavit in a statement on Tuesday night. They are expected to submit a more detailed answer before the court hearing next week.

Loretta called the “claim” of his son’s affidavit “as unfortunate as it is not true.” She presented what she believed to be “complete, complete and accurate data” on Natale’s performance, but after gaining a “more complete and impartial perspective” from the company’s independent directors, ” “The course has been reversed.” ..

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Independent Directors Support Edward Rogers’ Allegations of Long-Term Concerns About The Company’s CEO’s Performance

https://financialpost.com/telecom/independent-director-backs-edward-rogers-claims-of-longtime-concerns-about-performance-of-company-ceo Independent Directors Support Edward Rogers’ Allegations of Long-Term Concerns About The Company’s CEO’s Performance

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