Rogers exec reveals his $2-million post-merger bonus throughout tribunal

Article content material

A Rogers Communications Inc. govt revealed Thursday that he’s in line to obtain a $2-million bonus if the corporate’s $26-billion merger with Shaw Communications Inc. goes via, a determine that had beforehand been confidential.

Article content material

Rogers’ president of integration, Dean Prevost, on Thursday testified earlier than a tribunal that’s figuring out the destiny of the transaction, which would be the largest company acquisition in Canadian historical past if finalized. Whereas a lot of Thursday’s listening to befell in digicam because of the confidential nature of Prevost’s work on the merger, throughout an open portion the query of bonuses was raised.

Article content material

Paul Klippenstein, a lawyer for the Competitors Bureau, requested Prevost about his compensation, however stated he was uncertain if the data was confidential.

Earlier than Crawford Smith, a lawyer for Rogers, might affirm the data was certainly confidential, Prevost had answered the query.

“The quantity of that award is $2 million,” he stated.

Article content material

“That is in public? Oh, nice,” he added, upon realizing the mix-up.

Prevost additionally stated he won’t get the award if the merger doesn’t shut.

In a witness assertion filed on Sept. 28, Prevost stated Shaw and its wi-fi enterprise Freedom Cellular are regional opponents for Rogers, notably in British Columbia, Alberta and Southern Ontario. Different competing carriers embrace Saskatchewan Telecommunications Holding Corp. (SaskTel), Eastlink Inc., BCE Inc.’s Bell-MTS and Quebecor Inc.‘s Vidéotron, which is within the means of buying Freedom Cellular for $2.85 billion.

Prevost stated these opponents, nevertheless, characteristic “to a lesser diploma” than its nationwide rivals Bell and Telus Corp., as a result of they serve extra restricted geographies than the Huge Three — Rogers, Bell and Telus.

Article content material

Rogers has a “sizeable” wi-fi presence in Alberta and B.C. regardless of not providing wireline providers in both province, he added. Critics anticipate this to alter as soon as Rogers acquires Shaw’s wireline sources in Western Canada, which it presents underneath its Shaw Cellular model.

The Rogers govt additionally stated that the Huge Three launched restricted promotions in response to choices by Shaw Cellular, however these had been short-lived. On Wednesday, Shaw president Paul McAleese instructed the tribunal that Freedom Cellular’s launch of “Huge Gig” promotions — information plans that on the time had been far cheaper than these provided by the Huge Three telcos — was “some of the necessary occasions in Canadian wi-fi historical past.”

Article content material

“If accepted, the proposed transaction will permit Rogers to make use of Shaw’s wireline property to create a sturdy, coast-to-coast community,” Prevost stated in his earlier witness assertion. He added that the mix of Rogers and Shaw’s sources “will create Canada’s largest nationwide wireline community,” which he stated will permit for more practical competitors in opposition to Bell and Telus, who profit from their long-running network-sharing settlement.

The proposed transaction will slender the community footprint hole in opposition to Telus and Bell, his assertion stated.

The tribunal on Thursday additionally heard from Ron McKenzie, Rogers’ chief expertise and knowledge officer.