Telus CEO Change Sparks Questions on Board’s 14-Year Oversight
Telus Corporation has announced a significant leadership change as CEO Darren Entwistle departs after 23 years in the role. Victor Dodig, the former CEO of Canadian Imperial Bank of Commerce, is set to take over.
Leadership Transition at Telus
The announcement came as a surprise to many in the financial community on Thursday. Telus shares have struggled, trading at levels not seen since 2014. This shift has raised critical questions about the board’s decision-making process regarding succession planning.
Key Background on the Transition
- Darren Entwistle: Served as CEO since 2000, except for a brief period.
- Victor Dodig: Joined the Telus board in 2022; previously led CIBC.
- Stock Performance: Telus shares have decreased by 45% from their 2022 peak.
The board chair, John Manley, indicated discussions about succession planning with Entwistle have been ongoing since 2012. This long timeframe raises eyebrows about the board’s preparedness to nurture internal talent.
Concerns Over Succession Planning
Experts suggest 14 years is adequate time for a board to identify and develop internal candidates. Sarah Kaplan, a professor emerita at the University of Toronto’s Rotman School of Management, emphasized the importance of creating a robust talent pipeline.
Entwistle’s tenure was marked by a vigorous control of the company’s operations. Some industry insiders believed his leadership style stifled internal development.
Future Prospects for Telus
Investors are particularly concerned about Telus’s current debt levels and the performance of its subsidiary, Telus Health. As the company undergoes this transition, the focus will be on stabilizing stock performance and exploring expansion opportunities.
The leadership change at Telus signifies a pivotal moment as the company seeks a new direction amid evolving market challenges. The coming months will reveal how effectively Dodig can steer the company toward recovery and growth.
