Rogers rift takes new twist as both family factions claim control of the board

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The family power struggle for Rogers Communications Inc. took a dramatic new turn Sunday night, with a longstanding independent director and respected investment banker quoted as being supportive of Edward Rogers’ bid for control in a statement that purported to be from the company’s reconstituted board, which reinstated the deposed son of the company’s founder as chair.

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Despite the statement, other family members insist that control of the telecom giant has not changed, that Edward Rogers remains stripped of his position as chair, and that his attempts to shake up the board are “invalid.”

Robert Gemmell, former chief executive of Citigroup Global Markets Canada, was identified as lead director of Rogers in the release issued late Sunday by a purportedly reconstituted board that includes five independent directors put forward by Edward last week over the objections of his mother and two sisters, as well as other independent directors of the $30 billion telecommunications giant.

“Having served on the (Rogers) Board since 2017, I am fully supportive of the changes that have been implemented,” Gemmell said in the release.

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“The Board must have absolute alignment in their duties to ensure the business is strategically positioned and effectively managed. To do that, the Board must be independent of management and that is now the case,” Gemmell added in the statement, saying he is “excited for what the future holds at Rogers Communications.”

The statement went on to say the board is disappointed that some within the telecommunications company “resisted recognizing the change of Directors that took effect on Friday morning,” and added that Edward Rogers intends to initiate proceedings in the British Columbia Supreme Court to confirm and implement the changes.

Both sides appear to expect the matter to be settled by a court.

The strife between the Rogers family and some of the company’s directors was thrust into public view following Edward Rogers’ failed attempt last month to replace the company’s CEO Joe Natale with chief financial officer Tony Staffieri as part of a wider executive shakeup.

His mother Loretta Rogers and sisters Martha Rogers and Melinda Rogers-Hixon were firmly against the plan and tried unsuccessfully to rein in Edward’s control over the Rogers Control Trust, the vehicle put into effect after Ted Rogers died in 2008 through which they exercise control over the large telecommunication company.

On Sunday, Loretta Rogers issued a statement in which she called the meeting of the newly reconstituted board with five independent directors of her 52-year-old son’s choosing “invalid.”

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The “Rogers board remains properly constituted with John MacDonald as chair,” she said. “Edward unfortunately continues to proceed down a misguided and miscalculated path which leads nowhere productive and puts his own interests ahead of those of Rogers employees, customers and shareholders.”

Loretta Rogers, 82, said her son should “stop immediately, as his behaviour simply serves to underscore his seemingly wanton disregard for good governance.”

Martha Rogers, meanwhile, has taken to Twitter to decry the changes that purported to replace Bay Street stalwarts such as former Hudson’s Bay Co. president Bonnie Brooks with Ted Rogers loyalists including former communications and government relations executive Jan Innes.

Martha said on the social media platform that her family is willing to “spend every penny” to defend the company, its employees and her father Ted’s wishes.

Late Sunday she tweeted: “I see Ed has appointed himself the Chairman. LOL. This should be taken as seriously as if he appointed himself the King of England.”

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