Rogers Communications chairman Ed Rogers, less than two weeks after winning a court battle that backed his moves to replace five members of his board of directors, said late Tuesday that company CEO Joe Natale has stepped aside in favor of former chief financial officer Tony Staffieri, a move that didn't go down well with Rogers's mother and two sisters, who are also top shareholders in the Canadian telecom giant. 

Rogers Communications said Nov. 16 that Natale stepped down as CEO and Staffieri was named interim CEO of the company. Staffieri resigned in September after it was revealed in press reports that he had accidentally pocket-dialed Natale while he was having discussions with former Rogers legal counsel David Miller to oust the former CEO. Staffieri was backed by Ed Rogers in the attempted coup, but the scandal forced the communications giant’s board to hold an emergency meeting where they ousted Ed Rogers as chairman and threw their support to Natale. Staffieri resigned as CFO on Sept. 29. 

Less than two weeks later, on Oct. 12, Rogers’ board said it had replaced Ed Rogers as chairman, naming board member John MacDonald in his place. 

Although the board decision to push him out was reportedly engineered by his own mother, Ed Rogers, who also serves as chairman of the family trust that controls 97.5% of Rogers Communications voting stock, fired five independent members of the company's board of directors and reinstated himself as chairman. 

That action touched off a public battle between Ed, his mother Loretta and two sisters Martha Rogers and Melinda Rogers-Hixon, who claimed Ed’s actions were illegal and violated the company charter. On Nov. 5, the British Columbia Supreme Court ruled in favor of Ed Rogers, who then said in a statement that Natale had the support of the Roger Communications board.

That didn’t last long. On Nov. 16, Rogers Communications issued a press release that said Natale would no longer be CEO effective that day and that Staffieri would replace him in the interim. Rogers said it would immediately begin its search for a permanent CEO, adding that Staffieri would also be considered.

Also: Rogers Communications Ruling Family Embroiled in Real-Life Succession Drama 

The shakeup comes as Rogers’s $20-billion takeover of Shaw Communications continues to wind its way through the Canadian regulatory approval process. While that deal is expected to be completed by the first half of next year, and regulators insist they are concentrating on competitive issues, not family squabbles in their decision-making, other observers have said the ongoing drama has to have some effect on the deal. 

“Tony is amongst the most highly regarded and seasoned telecommunications executives in the industry and was a key part of the Shaw deal,” Ed Rogers said in the press release. “His incredible work ethic, track record for results, focus on long-term strategic growth, driving an excellent experience for our customers and employees, and strong operational execution will serve us well. The company has an exceptional set of assets and the Board has full confidence in his ability to lead Rogers during this period.”

According to Reuters, Rogers board member Robert Gemmell said in a statement that the company was had tried to reach a “constructive working relationship” with Natale through the Shaw merger, but failed to reach a deal. 

In a statement issued to the Toronto Star on Nov. 16, Ed Rogers’s mother and siblings had a different interpretation of Staffieri’s appointment, saying they were disappointed that “Edward has driven the termination of Joe Natale as RCI’s CEO."

“Joe is a world-class telecom leader, and as we have always said, we believe he’s the right person to lead RCI as chief executive,” the statement said. “The three of us voted against this misguided decision, which creates great uncertainty for RCI and its employees, customers, sports fans and shareholders, not to mention the Shaw transaction.”

Shaw representatives did not immediately respond to a request for comment. ■

Just days after a British Columbia Court ruled in favor of Rogers Communications Inc. chairman Edward Rogers’ moves to fire the company’s board of directors and replace it with his own slate, the Canadian telecom giant said it would not formally appeal the court’s decision.

Edward Rogers replaced five members of Rogers Communications’ board on Oct. 21, after the board moved to fire him over his behind the scenes moves to oust company CEO Joseph Natale. In addition to jettisoning the board, Edward Rogers, who also is chairman of the Rogers family trust that controls 97.5% of the vote of the telecom giant, also reinstated himself as chairman. The company and remaining members of his family -- mother Loretta and two of his sisters Martha Rogers and Melinda Rogers-Hixon -- claimed that Edward Rogers had violated Canadian corporate law and company bylaws by removing board members without a formal vote. Edward Rogers filed a suit against the company in October to uphold his actions, on which the BC court ruled on Nov. 5.

Also: Rogers Family Embroiled in Real-Life Succession Drama

In that written ruling, British Columbia Supreme Court Justice Shelley Fitzpatrick said Ed Rogers had sufficient authority as head of the Rogers Control Trust, adding that with 97.5% of the vote, his actions were “easily passed” by a special majority of Class A shareholders. 

In her ruling, Justice Fitzpatrick pointed to the highly public battle between family members, pointing to a flurry of critical twitter postings by Martha Rogers and press claims that Loretta Rogers was duped by her son in first agreeing that CEO Natale should be removed. 

“These family squabbles are an interesting backdrop to this dispute that would be more in keeping with a Shakespearean drama,” Fitzpatrick wrote. “They have no doubt added a voyeuristic element on the part of many into the lives of a very wealthy Canadian family and this aspect of the dispute has driven some media coverage. However, in my view, the family issues are of little assistance in determining the narrow legal issue raised and certainly do not need to be addressed or resolved in this Court. At best, they are a distraction.”

Rogers Communications initially said it planned to appeal the decision, with Loretta, Martha and Melinda issuing a statement that called the ruling a “black eye for good governance and shareholder rights and sets a dangerous new precedent for Canadian capital markets by allowing the independent directors of a public company to be removed with the stroke of a pen.”

But the company apparently changed its mind after Edward Rogers issued his own statement that said Natale has the board’s support as CEO.  

“Much has been written about Rogers CEO Joe Natale and his future,” Edward Rogers said in the statement. “Mr. Natale remains CEO and a director of Rogers Communications and has the Board's support. Our focus must be on the business, a return to stability, and closing our transformational merger with Shaw Communications.”

In a brief statement Nov. 7, Rogers’ board of directors said it “will not seek an appeal of last week’s British Columbia Supreme Court ruling.” 

In his Friday statement, Edward Rogers appeared to be willing to bury the hatchet with his family and get on with finalizing RCI’s pending takeover of Shaw Communications.

“The steps I have taken in the face of constant attacks in the media were difficult for me and my family,” Edward Rogers said in a statement issued after the ruling. “As Chair of the Rogers Control Trust, my responsibility is to ensure that the company is properly governed and effectively managed. I take that responsibility very seriously. Our family has disagreements like every other family. I am hopeful we will resolve those differences privately, as any family would. I know every member of our family wants the brightest future for Rogers Communications.”