Rogers CEO Nadir Mohamed stepping down
Grant Ellis | Feb 14, 2013 11:30 PM ET
In a shocking move for Canada’s telecommunications industry, Nadir Mohamed will step down as the head of Rogers Communications Inc. at the end of this year.
Mr. Mohamed was the chosen successor to Ted Rogers Jr. after the man who built one of Canada’s dominant media and telecommunications companies passed away in 2008.
In an announcement Thursday night, Rogers Communications said in a statement that, “Mr. Mohamed has agreed to work with the board to ensure a seamless and orderly transition and to continue to lead the company in 2013.”
“Nadir is a highly regarded executive who has delivered strong results and substantial value for more than a decade,” said Alan Horn, chairman of the board. “Thanks to his disciplined and strategic management approach we’ve strengthened our core business, solidified our financial position and set Rogers up for long-term success. The board is grateful for his significant contributions and looks forward to working with him to ensure a seamless and orderly transition.”
Insiders have said that Mr. Mohamed had clashed on certain decisions with Edward Rogers III, Ted Rogers Jr.’s son and now the deputy chairman of the company.
The company said its board will appoint a committee to begin an international search for a new chief executive, but neither Edward Rogers III or his sister Melinda Rogers will put their names forward as candidates and will both be involved in the search process.
When Mr. Mohamed succeeded the elder Mr. Rogers to head the company he was seen as the natural choice to push Rogers Communications into the next stage of its development. As the long-time head of Rogers’ wireless division, Mr. Mohamed was in charge of a unit that dominated its competitors by being the first to offer the newest phones and the fastest networks in Canada.
This advantage fell apart soon after BCE Inc. chief executive George Cope started to transform Rogers’ biggest competitor in 2008. Not only did Bell become a leaner and more aggressive competitor under Mr. Cope, it also soon built a wireless network that many considered faster, offered the same cutting edge smartphones as Rogers and even challenged Rogers’ legacy cable television business in Ontario and Quebec.
Further, Mr. Mohammed seemed a step behind in acquisitions. While he teamed with Bell on the purchase of Maple Leaf Sports and Entertainment in 2012, he had allowed arch cable rival Shaw Communications to buy Hamilton, Ontario-based Mountain Cable out from underneath it just a couple of years earlier (only to recently buy it from Shaw for a considerably higher price).
Still, Mr. Mohammed’s term has not been a loss for shareholders. Rogers said that since Mr. Mohamed became CEO in March 2009 the company has delivered a total shareholder return, including all dividends, of 81%.
“Nadir skillfully led the company during an extraordinary time of change in our history and the history of our industry,” said Edward Rogers, who is also the Chair of the Rogers Control Trust. “On behalf of the company I thank Nadir for his ongoing leadership and for strengthening the company both operationally and financially.”
