Rogers family feud isn't good orthodox corporate governance: Institute of Corporate Directors CEO
The turmoil at Rogers Communications Inc. (RCI) has caught the eye of a top global credit ratings agency.
S&P Global Ratings downgraded its assessment of Rogers’ management and governance (M&G) to fair from satisfactory, it said in a statement Thursday afternoon.
“The oversized influence of the Rogers Control Trust on RCI's board, combined with recent actions, is inconsistent within our M&G framework, in particular for a large public company such as RCI,” S&P said in the statement.
Rogers has been engulfed in chaos and negative media attention for weeks amid a power struggle pitting Edward Rogers, son of the company’s founder and chair of its controlling shareholder, against family members, directors and management.
The turmoil has led to two boards of directors claiming to be calling the shots, and is heading to the B.C. Supreme Court next week for a ruling on who the rightful board should be.
S&P said in its assessment that the distractions could hinder Rogers’ ability to raise capital while also navigating the regulatory hurdles before it can complete its planned $20-billion takeover of Shaw Communications Inc.