Ex-Rogers CEO Joe Natale suing company for wrongful dismissal, seeking $24 million
Former Rogers CEO Joe Natale is suing the company for wrongful dismissal and breach of contract, while 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.
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.
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.
A British Columbia Supreme Court judge ruled Edward Rogers' declaration legitimate and he was reinstated as chairman.
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.
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 spokeswoman 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.
This report by The Canadian Press was first published Aug. 18, 2023.
CTVNews.ca Top Stories
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
AstraZeneca says it will withdraw COVID-19 vaccine globally as demand dips
AstraZeneca said on Tuesday it had initiated the worldwide withdrawal of its COVID-19 vaccine due to a 'surplus of available updated vaccines' since the pandemic.
'Summer of discontent': Federal unions vow to fight new 3-day a week office mandate
Federal unions are launching legal challenges and encouraging public sector workers to file "tens of thousands" of grievances over the new mandate requiring federal workers to return to the office at least three days a week in the fall.
Watch fighter jet pilots pummel fake enemy ship off coast of Philippines
The United States and Philippines held annual joint-training drills just off the Southeast Asian nation’s western coast on Wednesday. Military forces sunk a 'mock' enemy warship – the BRP Lake Caliraya, which was a decommissioned tanker made in China.
'Ozempic babies': Reports of surprise pregnancies raise new questions about weight loss drugs
Numerous women have shared stories of 'Ozempic babies' on social media. But the joy some experience in discovering pregnancies may come with anxiety about the unknowns.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
'I killed four people': Trial hears video evidence of Jeremy Skibicki at Winnipeg trial
“I killed four people,” alleged serial killer Jeremy Skibicki told two homicide detectives during a recorded interview played as evidence in his trial Wednesday.
Seafood, eat food: Calgary Stampede releases Midway menu
The Calgary Stampede has released its menu of sweet, salty and spicy treats available on the Midway for the Greatest Outdoor Show on Earth.