However, a Telus spokesman said, it has always been the intention of the Telus board that top managers would be based in the West and directors had expected that Natale would move once Vancouver-based Entwistle switched to a non-executive chairman role when his three-year contract expired in 2017.
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Natale joined Telus in 2003 as an executive vice-president and became chief commercial officer in 2010.
TELUS said Joe Natale, president and chief executive officer, is stepping down since he does not want to move to Western Canada.
Telus said the decision was made after an extensive review that concluded late Friday, after the company issued its second-quarter financial results.
With Natale having taken over from Entwistle as recently as March 2014, the announcement came as a surprise, prompting some commentators to question whether there is more to his departure than simply his address.
TELUS, with its headquarters in Western Canada, dominates Western Canada while Bell is based just south of Montreal and Rogers is headquartered in Toronto. There’s no suggestion this is an interim move; in fact the company said Entwistle and Auchinleck have both agreed to serve on a long-term basis.
“I am confident that TELUS is poised for continuing success in the years ahead and I will work with Darren and the leadership team to ensure this transition is successful”. Patrick Horan, principal at investment fund Agilith Capital, said that doesn’t fully explain why an executive at a major telecom company would give up his position.
Entwistle’s return as CEO is not surprising, as he was regularly involved in the day to day running of the company since his board appointment.
TELUS has no reservations that Natale is leaving the company. Operating revenue was up 5.1 per cent to $3.1 billion, with the wireless division accounting for about $1.7 billion of that amount.
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In addition to these changes, Dick Auchinleck has stepped into the role of Telus’ independent chair.
