Former Rogers CEO Joe Natale is suing the company for wrongful dismissal and breach of contract, alleging Rogers chairman Edward Rogers carried out “malicious, high-handed, and oppressive conduct.”
In a statement of claim filed with the Ontario Superior Court of Justice on Thursday, Natale accused Edward and his wife Suzanne Rogers of attempting to “tarnish his reputation” following his ouster in November 2021.
But Rogers called its former chief executive’s claims “baseless” and alleged Natale “engaged in serious misconduct” while serving at the company’s helm. It said as a result, it has now terminated Natale for cause.
In court filings, Natale accused Edward and Suzanne Rogers of hiring actor Brian Cox of HBO’s Succession to create a “demeaning” video about him and allegedly distributing it to family members, friends and colleagues, before it was eventually reported on by media.
The video included a message congratulating Edward Rogers on his “real-life succession at Rogers Communications” and used an expletive to describe Natale’s departure from the company.
He said he and his firm Natale Industries Inc. are entitled to a combined $24 million, including $4 million from an unpaid bonus related to the closing of Rogers’ acquisition of Shaw Communication Inc. in April.
None of the claims in Natale’s suit have been tested in court.
Boardroom struggle
Natale’s departure from the Toronto-based telecommunications giant was announced following a boardroom power struggle over the chairman’s desire to replace him with then-chief financial officer Tony Staffieri.
Edward’s initial attempt to oust Natale in favour of his No. 2 led instead to Staffieri’s departure in September 2021, as well as a board vote that saw Edward removed from his seat at the head of the table.
Rogers Communications plagued with leadership dispute and family infighting
Telecom giant Rogers Communications has been thrown into turmoil over an internal leadership dispute between members of the Rogers family itself. All this while the company tries to finalize a massive $26 billion deal to take over Shaw Communications.
Edward penned a shareholder resolution — without a shareholder meeting — to oust the five directors who had defied him. The company filed a legal challenge to his revamped board, sparking a court battle over who actually served on it.
Staffieri replaced Natale as president and CEO in the aftermath of the ruling.
In the court filings, Natale said he negotiated and agreed upon the terms of his severance in a series of meetings with Edward in September 2021, that were approved by the Rogers board.
But he said a group of board members then asked him to stay on as CEO against Edward’s wishes “to support the strategic priorities of the business, including to complete the Shaw Deal and support the complex regulatory approvals and post-merger integration efforts.”
Natale said the company enhanced his employment terms in written contracts in October 2021, before he was terminated the next month. He said the company has a contractual obligation from those deals to provide him with certain entitlements on a termination without cause but has refused to do so, “instead only providing Natale with compensation consistent with a termination without cause” under his previous contract.
Rogers chair Edward Rogers, left, won a battle with former CEO Joe Natale, right, for control of the company. (Chris Young/The Canadian Press)
In a statement, Natale spokesman Bill Walker of MidtownPR said “it is unfortunate that Rogers will not honour its commitments made to Mr. Natale.”
“His employment agreement, put in place by the board of directors at the time was clearly articulated, duly executed and designed to ensure continuity during the Shaw merger,” Walker said in an email.
“We are confident that the courts will share this view.”
Rogers spokesperson Sarah Schmidt said the company plans to “defend itself vigorously against his baseless claim” and will file a counterclaim to address alleged “improper behaviour” on Natale’s part.
“An independent investigation has revealed that Joe Natale engaged in serious misconduct during his time as CEO. As a result, we have made the necessary decision to terminate him for cause,” Schmidt said.
“While we would have preferred to deal with this matter privately, Mr. Natale has left us with no choice.”
Schmidt said that Rogers’ investigation revealed that in October 2021, Natale knew steps were being taken to make changes to the company’s board which would end his tenure as CEO. She alleged Natale awarded himself “excessive compensation without proper board approval” before his departure.
“This, and other actions, were a serious breach of his fiduciary duties as a chief executive officer and director of a public company,” she said.
“Mr. Natale was aware of the investigation and given an opportunity to respond. He understood the implications of its findings and the lawsuit is an attempt to get ahead of the investigation.”
Earlier this year, Sun Life Financial Inc. named Natale to its board of directors.
Natale had been chief executive at Telus Corp. before joining Rogers.
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
