Rogers Communications has announced that Nadir Mohamed, the company's President and Chief Executive Officer, has decided to retire in January 2014.
Mohamed will work with the board on a transition and will 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, Rogers Communications Inc. "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."
Rogers Board of Directors will appoint a search committee and select a search firm to begin an international search.
Neither Edward nor Melinda Rogers will put their name forward as candidates, but they will both be involved in the search process, as will Mohamed.
Mohamed joined the company more than 30 years ago; his departure is announced at a positive time for the company, with strong fourth quarter financials also being announced: the company’s operating profit grew seven per cent, with earnings per share up 33 per cent.
“We exited 2012 with accelerating growth across our asset mix and with continued improvements in the strength of our key metrics," Mohamed said of the results. “It was a record quarter for smartphone sales in our Wireless business where data revenue growth continues to accelerate. Our Cable division executed well with strong Internet growth and industry-leading margins, and our Media business continued to improve and grow. Importantly, we achieved or exceeded all of our full year financial guidance metrics and are well positioned for 2013."
Since Mohamed became CEO in March 2009 the company has delivered a total shareholder return of 81 per cent.
Mohamed was President and CEO of Rogers Wireless from 2001 to 2005 and was appointed President and COO of Rogers Communications Group in 2005. Mohamed was appointed President and Chief Executive Officer in March 2009 succeeding the late company founder Ted Rogers.
Mohamed ruled Rogers during recent and significant corporate developments, including the joint acquisition of Maple Leafs Sports and Entertainment in partnership with Bell Canada. The two companies formed a holding company to govern their combined net 75 per cent stake in MLSE.
On the wireless side of the business, Rogers unveiled and launched its LTE (Long Term Evolution) network in recent years.
Olympic games coverage and a broadcast consortium partnership was a broadcast highlight during his term, and its was Mohamed that hired Keith Pelley, 46, and gave him overall responsibility for Rogers Media properties including Rogers Broadcasting, Rogers Publishing, Rogers Digital Media, Rogers Sportsnet, the Shopping Channel, the Toronto Blue Jays and Rogers Centre.
"It's truly a privilege to work with the Rogers family, the board, the leadership team and our employees to deliver for customers and shareholders and to set the foundation for the future,” he said in a statement. "The Company has a seasoned executive team, the best asset mix in North America, the most advanced networks and the best platform to lead and drive the next wave of growth. The company's in great shape and it's time to start the transition to the next generation of leadership. Over the next year I look forward to delivering strong results and to ensuring a seamless transition."
During his tenure the company became the largest wireless carrier in Canada; consistently delivered best in class Wireless and Cable margins; significantly strengthened the balance sheet; consistently delivered first-to-market solutions; and set the foundation for future growth.
"Nadir skilfully led the company during an extraordinary time of change in our history and the history of our industry," said Edward Rogers, Deputy Chairman and 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."
The Rogers board also announced a 10 per cent increase in the Annualized Dividend to $1.74, effective immediately, and a Quarterly Dividend of 43.5 cents per s was declared. A repurchase of some $500 million in stock was also announced by the board.