Edward Rogers settles on to a large couch inside a hotel suite in downtown Toronto. It is a rainy Saturday and the son of cable magnate Ted Rogers has already had a busy morning.
He has just come from taking his two-year-old, Edward Rogers IV, for a haircut. The future scion of the Rogers family cable and telecom empire performed well in the barber's chair, the 38-year-old Mr. Rogers is happy to report. He speaks softly in a steady and understated fashion that sets him apart from his gun-slinging father.
In fact, everything about Edward is noticeably quiet. The hotel room he's chosen for the interview is a low-key venue to talk about cable, telecom and the future of the $30-billion family business, 15 floors above street level, far from the din of honking horns below. The Toronto Blue Jays - the baseball team his father bought in 2000 - are playing on a flat panel TV across the room. The volume is muted.
Though calm on the outside, there is nothing settled about Edward Rogers' situation these days. At best, he is one of several candidates for the top job at Rogers - not the clear-cut favourite - and he knows it.
"I keep my head down and work," he says.
Five years after taking the reins of the company's cable division following a stint at U.S. cable operator Comcast Corp., Edward believes he is now up to the task. This hotel room, as his father turns 75, is the closest he will come to getting up on a soapbox and proclaiming, in his first major interview in five years, that he wants to lead the company.
The problem is that so many others don't think he's the man. Edward Rogers is well aware of those criticisms. He is an enigmatic figure in one of Canada's best known companies, the quiet son - often called shy - who came up in the shadow cast by his famous father. He has held a variety of jobs inside the company, gaining a reputation as a hard worker. Yet through it all, he is viewed by some as Ted's son - rather than his successor.
A few years ago this was expected to be a crucial time in the evolution of Rogers Communications Inc., the largest cable and wireless conglomerate in Canada. Ted Rogers hits his birthday milestone on Tuesday. That was the age he had given for his retirement as chief executive officer.
But that was before Ted subsequently tore up those plans, deciding instead to leave his departure from the company open-ended. Like moving out of a leased apartment, Ted's new plan is to give the board six months' notice when he decides to vacate the company. He insists that he harbours no immediate plans to go.
As is the way in most family businesses, the eldest son or daughter is usually a logical candidate when it comes time for the torch to be passed.
You can't swing a co-axial cable on Bay Street these days without hitting someone who would rather see Ted's second-in-command Nadir Mohamed take over, backed by impressive growth in the wireless division that has made Rogers a leader in that field. Meanwhile, 37-year-old daughter Melinda is another key contender. And Ted has done everything he can to keep all doors open, even as concerns about his health loom.
"I don't want to be comparative," Ted Rogers said in an interview yesterday, when asked who is better prepared for the CEO role, Edward or Melinda. A board committee has been set up to choose the eventual CEO.
"We've got other good internal candidates that Edward and Melinda know about: Nadir, and [chief financial officer]Bill Linton - and there are others. And then of course a good board committee looks externally, so that if an internal candidate wins it, they know they've won it honestly and are the best for the job."
In fact, Edward Rogers may be the only son of the second-richest Canadian, but there are moments when he isn't sure whether he still has a job at the family firm. A notoriously demanding business titan, Ted isn't about to give anyone, including the son working right beside him, an easy ride.
"My dad's always had a work style that is not personal," Edward says. "He'll be very passionate on the issue and pushing me to go harder.... "You'll leave the meeting thinking, 'Oh Christ, I should write a résumé and look around.' " He laughs. "And then he'll give you a hug at the end of the meeting and say it's the best meeting he's ever had."
The younger Mr. Rogers is understated - almost to a fault. He has kept his head down, he says, speaking slowly and sometimes with a slight stammer as he chooses his words. "But I can pop up every now and then."
After 13 years in the family business, even he claims his future career path remains a mystery. At 38, he is the same age his grandfather Edward Rogers was when he died. "I'd like to continue to grow within the company. What that means and when, I don't know."
The accountant and the superstar
Ted has done little to ease the questions about succession. When asked about comments he made two years ago at a banking conference - in which he said a family member would not likely become CEO after he retires - he is abrupt.
"I was either wrong or misquoted," Ted says.
It's tough to tell if he is serious or joking when asked about his son or daughter waiting in the wings.
"When I go to work in the morning, I thank God we've got the two young Rogers there. I look forward to it. I'm very grateful to God that they're there and that I'm there," he says.
"That's when I go to work. By noon, I'm sort of wavering. By nightfall, I say, 'Oh my God, how did we get into this?" He laughs. "That's being facetious."
"As a father, you're proud of the offspring.... That's much bigger than Rogers or a company."
Ted describes his progeny two ways. Melinda is a chip off the old block - fiery, intense outspoken.
"Melinda is a superstar, and bright as hell. It's always a joy to work with her. She's too much like me in all the good ways and bad ways."
He's been known to refer to Edward as The Accountant, which his son doesn't mind.
"Edward is more of a conservative person than I am. In the company, he's very careful with finances, he's very finance oriented, cost oriented, he works hard. He gets to work at maybe seven in the morning."
The two have also taken much different paths professionally. Melinda went to business school, Edward came up in "the school of hard knocks" as his father puts it, doing Joe-jobs at Comcast, then being slotted into lower-profile management jobs at Rogers when he came back to Canada.
"He hasn't had an MBA like Melinda has, but on the other hand, when you're CEO of a company both are important - education is important, but as each year goes by job results are increasingly important."
Ted acknowledges he has been tough on Edward. Soon after his son graduated from the University of Western Ontario, he arranged for him to learn the cable business at Comcast, based in Pennsylvania. There he was a nobody. "I said, 'Give him every shit job. Make him understand what it's like to have to work," Ted says.
Back at the hotel, Edward acknowledges that if it wasn't for Comcast, he may not be running the Rogers cable division today.
Practical joker fast eddie
Edward Rogers sums up his college years in six words. "I probably enjoyed life too much," he says.
It is his euphemism for the time in his life when he didn't take school that seriously. After graduating from high school Edward set off to Western, joining Sigma Chi, the same fraternity his father belonged to decades earlier. His job inside the fraternity was similar to a treasurer - befitting his accountant image - but Edward also took on the social convener duties when called upon, recalls close friend Jon MacDonald.
Mr. MacDonald recalls having to be on the lookout around Edward - a ruthless practical joker - in order to avoid becoming his next victim. Orajel - an over the counter toothache medicine that numbs the mouth - was a calling card for the younger Rogers, who was known for his motorcycle T-shirts and by the nickname Fast Eddie.
"If you took a sip of your beer and your mouth or your lips went numb, he would be the guy who threw Orajel on your beer bottle," says Mr. MacDonald.
Edward Rogers emerged from Western in 1992 with a degree in political science and marks that were "not stellar," he says with a wry grin.
But Ted Rogers never believed in moving his kids to a cushy post as soon as they reach adulthood. He was only five when his father died suddenly after developing a radio tube and founding Toronto radio station CFRB, an acronym for Canada's First Rogers Batteryless.
Lacking life insurance, the family was forced to sell various parts of the business, or they lost them in disputes. His mother told young Ted a few years later that his job was to get the family back into the communications business, and from there he set out to prove that he could, eventually building the company into the lucrative cable monopoly and wireless giant it is today.
To instill a similar work ethic in his son, Ted pulled strings with the controlling family of Comcast to get Edward a job after graduation, rather than bring him directly into Rogers.
"My dad had thought that spending some time outside of the company first was healthy and helpful," Edward says.
It wasn't an easy sell, Edward recalls. The Roberts family who ran Comcast had given similar favours before to other friends and been burned.
"They had another family friend who they had done the same thing with, and unfortunately the fellow enjoyed drugs and alcohol and pinching women at work..." Edward says. "They had to terminate him and it ended the relationship with the gentleman."
Assurances were made that Edward would take his work seriously, and he packed his bags for Towson, Md., near Baltimore. Back at Sigma Chi, the Rogers name carried a bit of weight. Things were different at Comcast. Stephen Burch, a long-time cable executive who worked at Comcast during that period, remembers Edward as someone who was eager to learn.
"He certainly didn't act like a multi-millionaire's son," said Mr. Burch, who most recently worked for Virgin Media in Britain. "He didn't act like a prima donna."
The way Edward sees it, his time at Comcast proved pivotal, allowing him to mature. "For whatever reason, I moved away and worked at Comcast, then it just clicked - Grow-up time, take-life-serious time, and get to it."
Comcast was an easier place to learn the ropes than under the pressure cooker back home, where the watchful eye of employees would be on him, including those of his father.
Cable industry in transition
The debate over whether Edward Rogers should succeed his father almost became moot several years ago when he nearly fell off a skyscraper.
It happened during a summer job at Rogers, while inspecting a cellphone tower atop a building in Toronto. Angling for a better view of the equipment, Edward realized - only a moment too soon - that he had been walking backwards toward the edge of the roof. It's a story he likes to tell, that of the near miss.
Much like at Comcast, Edward's early student jobs at Rogers weren't glamorous. His roles have been noteworthy for exactly the opposite reason. Sometimes he answered phones or rode with technicians and helped out on calls.
Upon his return to Canada in the fall of 1994, however, he began rising faster up the ranks, as did Melinda who also moved into the executive suite. Edward was named director of sales administration for the cable business and later moved to the wireless division, where he was vice-president of the paging and data business.
At the age of 33, that Edward moved into his first high-profile post, being appointed chief operating officer of the cable unit. The original plan was for him to gain experience working alongside the unit's CEO, John Tory. But within a few months, Mr. Tory left for the political world and Edward slipped into his spot. Though Mr. Tory has denied it, his departure came amid speculation he was leaving because he never saw the CEO role being handed to him.
Mr. Tory insists Edward got the job because of his cable credentials, not his name.
"We had a considered discussion about it," said Mr. Tory, now the Ontario Progressive Conservative leader. "It wasn't just something where Mr. Rogers just sent me a memo ... saying the new CEO or [chief operating officer]is going to be this person or that."
When Edward took the reins, the industry was in transition. Cable operators had poured large sums of money into their networks to offer faster Internet and advanced digital TV services. Edward remembers some observers weren't convinced there was much growth left. "When I came in I remember people talking about the slowdown of cable," he says. "TV is not growing, satellite is coming and eating your lunch a bit ... telephony was a dream.
The market has changed dramatically since Ted first started in the cable business some 40 years ago. Rogers no longer just sells a utility-like basic TV service each month. Instead, it offers lucrative digital TV, wireless, and Internet services. Three years ago, the cable industry added local phone service to that mix, taking on old telecom foes Bell Canada and Telus Corp.
During Edward's tenure, the cable unit's operating profit jumped from $563.5-million in 2002 to $1-billion in 2007.
Critics say running a cable operation doesn't require much creativity, since the companies own a near monopoly, competing mostly against satellite dishes. Analysts believe there is more work to be done in improving the cable unit's profitability. They point to less attractive margins compared with some rivals, in part because of lower penetration of more lucrative products such as Internet service as well as less cost control.
Last year, the cable unit's operating margin was 38.7 per cent, compared with 44.7 per cent at Shaw. New technology will allow Rogers to fit more high-definition channels on the cable network, and there are also plans to make its Internet service speedier.
Ted remains, as ever, heavily involved in the cable business. The company as a whole, is still his show. At the Rogers annual meeting in April, Ted commanded the spotlight in a shiny blue suit reminiscent of Vegas, with Nadir Mohamed at his side.
Sitting down in front, away from the microphone was Edward, dressed in a more conservative dark-coloured business suit. When the meeting concluded, Edward approached the stage, shook his father's hand. It was a good meeting, he said. Yes it was, Ted replied.
'One person on deck'
Ted Rogers says his son is "a much better father than I ever was."
Edward, who has an 11-year old daughter and two sons with wife Suzanne, has kept a desk in his living room to be closer to the children when working at home, rather than seconding himself to an office.
But there are similarities. As a boy, Edward remembers going along when Ted would appear at federal regulatory hearings. Last month, Edward's youngest son Jack, born 18 months ago, sat on his lap during a Rogers meeting.
While his future operating role is uncertain, Ted has decided to put Edward in charge of voting the family's controlling stake in the Rogers empire when he passes on.
"You need to have one person on deck, one person who's in charge," Ted explains.
But there's no guarantee that Edward will always be that leader. Ted himself admits he has turned to numerous people for advice and already changed his mind on several occasions. Furthermore, a group of 17 people made up of the family and trustees would review Edward's performance in that role annually and can drop him if they're not happy.
"I have every confidence in him," Ted says. "But if I'm wrong ... they can make a change to Melinda or Alan Horn or whoever."
When it comes to the CEO role, some observers would prefer to have an outsider like Mr. Mohamed, chief operating officer of the communications group, who has an impressive background in wireless. "It's too big and important a company to risk just by extension an automatic transfer to the kids," one observer said.
Along with gaining more experience in Rogers' various businesses, including cellphones, Edward may also need to make some more personal adjustments in order to fit the role of CEO. While he's chatty and playful with close friends, he needs to be more easygoing when talking to crowds, including employees. "You have to be a bit of a salesman," an industry source said.
There are many things passed down through the family, not the least of which the continuation of the Edward Rogers name to a fourth generation. The decision to bestow that name on his eldest son was not a given. "We debated, we weren't sure, but it felt right," he says.
Perhaps it is fitting then. When the time comes to choose a CEO, there will also be debate. There is only one certainty. "It's important for me that the company not be sold," says Ted.
TED ROGERS: LOOKING AHEAD
Ted Rogers, who is turning 75, weighs in on his changing role, the growth opportunities ahead for his company, and the required qualities for his eventual successor.
On personal changes he's made:
"The company has grown, we've had to adapt. I've had to adapt personally. I've had to change my habits, improve my behaviour, to be honest. Just not get mad. To try to move more to consensus."
On his evolving role at the company he founded:
"I love my work. But what I'm gradually moving into is more focusing on the long term. You do get involved in the short term as part of an overall long-term strategy, but you're not worried about the day-to-day activities. You're not second-guessing people on day-to-day decisions. We've established an office of the president. Instead of just me, it's Nadir [Mohamed] the chief operating officer, Bill Linton, the chief financial officer, and Alan Horn, the chairman, and myself. We meet every week for three hours. We bring Edward [Rogers]and Rob Bruce in for most of the meetings. And we make decisions collectively, which I used to make singly."
On the company's future:
"The next 10 years depends really on, once we have the company improved, what do we do for growth? Do we do growth in Canada, and is there any growth possibilities in Canada, or do we look south of the border? I was south of the border before with cable. We had a million customers. We had to sell them in order to finance the wireless."
On his eventual successor:
"He has to be a leader. You can get a consensus, but there's a danger to too much consensus. The consensus is the common denominator and there's no leadership. Without trying to criticize BCE, I think that's what happened there. They had consensus. For example, they did not bid for [wireless company]Microcell. It was an unbelievable decision. That turned out to be a consensus decision. It wasn't something that Michael [Sabia]made the final decision on. The CEO has to make the final decision. He has to listen to people, and consider all views, but the danger is you know that somebody is very much against a move that you know would be very good for the company.
Dec. 31, '89: $7.77
Dec. 30, '90: $2.94
Dec. 31, '91: $7.00
Dec. 31, '92: $7.25
Dec. 31, '93: $10.94
Dec. 30, '94: $9.38
Dec. 29, '96: $7.63
Dec. 31, '96: $5.05
Dec. 31, '97: $3.45
Dec. 31, '98: $6.82
Dec. 31, '99: $17.65
Dec. 29, '00: $12.65
Dec. 31, '01: $13.56
Dec. 31, '02: $7.33
Dec. 31, '03: $10.67
Dec. 31, '04: $15.72
Dec. 30, '05: $24.60
Dec. 29, '06: $34.70
Dec. 31, '07: $44.99
May 23, '08: $44.28
Grant Robertson