(Toronto) Former Rogers CEO Joe Natale is suing the company for wrongful dismissal and breach of contract, alleging Rogers Chairman Edward Rogers engaged in “malicious conduct, authoritarian and oppressive”.
In a statement filed Thursday with the Ontario Superior Court of Justice, Natale accuses Edward Rogers and his wife Suzanne Rogers of attempting to “tarnish his reputation” following his November 2021 ouster.
Among other things, he accuses them of hiring actor Brian Cox of HBO’s Succession series to create a “demeaning” video about the ex-CEO, which includes a message congratulating Edward Rogers on his “real estate”. Life at Rogers Communications,” which they allegedly distributed and eventually picked up in the media.
He claims he and his company Natale Industries are entitled to a total of $24 million, $4 million of which comes from an unpaid bonus linked to the closing of Rogers’ acquisition of Shaw Communications in April.
None of the claims in Mr. Natale’s complaint have been verified by a court.
Mr Natale’s departure from the Toronto telecommunications giant was announced following a power struggle on the board, with the chairman keen to replace him with then-chief financial officer Tony Staffieri.
In court filings, Mr. Natale said he negotiated and agreed to the terms of his severance package in a series of meetings with Mr. Rogers in September 2021, which were approved by Rogers’ board of directors. .
But he added that a group of board members then asked him to stay on as CEO against Mr. Rogers’ wishes “to support the company’s strategic priorities, including achieving the agreement with Shaw and support for complex regulatory approvals and post-merger integration efforts.”
Natale said the company improved his terms of employment in written contracts in October 2021, before he was fired the following month. He said the company had a contractual obligation under those agreements to grant him certain rights in the event of termination without cause, but refused to do so, “instead granting Mr. Natale than compensation for termination without cause” under his previous contract.
In a statement, Mr. Natale’s spokesperson, Bill Walker of MidtownPR, said “it is regrettable that Rogers is not honoring its commitments to Mr. Natale,” which were intended to ensure continuity during the merger with Shaw. .
“His employment agreement, put in place by the board of directors at the time, was clearly articulated, duly executed and designed to provide continuity during the merger with Shaw,” Walker said in an email.
“We are confident that the courts will share this view. »
According to Sarah Schmidt, a spokeswoman for Rogers, the company plans to “vigorously defend itself against this baseless complaint” and will file a counterclaim to address allegations of “inappropriate conduct” by Mr. Natale.
“An independent investigation has found that Joe Natale was guilty of serious misconduct while serving as CEO. Accordingly, we have made the necessary decision to terminate him for cause,” Ms. Schmidt said.
“We would have preferred to settle this matter privately, but Mr. Natale left us no choice. »
Ms. Schmidt pointed out that Mr. Rogers’ investigation revealed that in October 2021, Mr. Natale knew that steps were being taken to change the company’s board of directors, which would end his term as chief. of management. She claimed that Natale had awarded himself “excessive compensation without board approval” prior to his departure.
“This act and others constitute a serious breach of his fiduciary duties as a CEO and director of a public company,” she said.
“Mr. Natale was aware of the investigation and had the opportunity to respond. He understood the implications of the findings of the investigation and the legal action is an attempt to preempt the investigation. »
Earlier this year, Sun Life Financial appointed Mr. Natale to its board of directors.
Mr. Natale was CEO of Telus before joining Rogers.
