Entwhistle returns as Telus CEO
Darren Entwistle is taking back the corner office at Telus Corp., the country’s second- largest carrier.
The Vancouver- based company said Monday that Entwistle, 52, who served as chief executive officer and president for 14 years until relinquishing the job last May to become executive chairman, will replace the man who succeeded him, Joe Natale, 51, effective immediately and on a long- term basis.
Likewise, Dick Auchinleck, who has served as Telus’ lead director, has been named the company’s independent chairman.
Natale, who has worked in Toronto, has resigned after notifying the board that he’ll be unable to fulfil its request to relocate to the West Coast. The release says the leadership shuffle follows a review by the board that wrapped up late Friday, the same day Telus posted another quarter of strong financial results.
“Mr. Natale recently indicated that a move to Western Canada would not work for him and his family for several years,” states the release, which thanked Natale for his 12 years of service at Telus, “and the Board determined that the Company would be best served by having its chief executive officer reside in the West.”
To help make the transition a smooth one, Natale will serve in an executive, non- board capacity until the end of 2015. He is prevented from joining a competitor for 18 months beginning Jan. 1, 2016.
While Natale’s sudden departure being attributed to his reluctance to physically relocate, Telus is known for allowing select employees to choose where they want to work. On its corporate website, the company says it strives to have 30 per cent of its staff working out of an office — and the rest remotely — because it enhances productivity, encourages work- life balance and reduces its real- estate footprint.
Patrick Horan, principal at investment fund Agilith Capital, said that doesn’t fully explain why an executive at a major telecom company would give up his position.
“It doesn’t make sense that he’s been in there for a little over a year and they’re picking a fight over whether he’s located in Toronto or Vancouver,” he told The Canadian Press.
Josh Blair, Telus’s chief corporate officer, said the board’s goal has always been to have a management team spread out across Canada, “but have the most- senior management position in Western Canada, given the majority of our customers and revenues, come from Western Canada.”
Its directors had expected that Natale would move once Vancouverbased Entwistle progressed to a non- executive chairman role when his three- year contract expired in 2017. The succession discussions between Natale and the board had been ongoing, according to a spokesperson.
As CEO, Natale reported to Entwistle, who led earnings calls, fielded questions about strategy and reported to the company’s board. Since he took over in 2000, Entwistle had been lead architect who helped catapult Telus from a regional telephone provider to one of the country’s largest telecommunications companies.
“While this news is a surprise, we do not see any changes to the strategic direction or financial priorities of the company,” analysts at RBC Capital Markets said in a note to clients.
Telus shares, which have gained about five per cent this year, closed at $ 43.92, down 65 cents or 1.46 per cent Monday in Toronto trading.