Victor Dodig, a former chief executive officer of CIBC and a Telus board member, will succeed Darren Entwistle as CEO.Justin Tang/The Canadian Press
Former Canadian Imperial Bank of Commerce chief executive Victor Dodig has been named CEO of Telus Corp. T-T, replacing retiring CEO Darren Entwistle in a change of leadership that has surprised Bay Street.
The moves could signal a change of financial strategy for the Vancouver-based telecom company as Mr. Dodig takes up the reins, analysts said Thursday. Mr. Dodig, who retired as CEO of CIBC last year, joined the Telus board in 2022 and has been a member of the company’s people, culture and compensation committee, which oversees leadership hiring and compensation issues.
Mr. Entwistle, 63, known as the industry’s longest-serving executive and an intense leader, joined Telus in 2000 and oversaw the company’s transition from a regional telecom company to a digital giant with multiple international divisions.
Mr. Entwistle outside his Toronto office in September, 2022. Having joined the company in 2000, he is the telecom industry's longest-serving executive.JENNIFER ROBERTS/for The Washington Post
Mr. Entwistle’s departure follows a period in which the company has come under fire from analysts and credit raters for its dividend strategy and heavy debt load. The company’s shares have fallen almost 30 per cent over the past five years, and slid 2.8 per cent in early trading Thursday after the succession news was released.
The announcement Thursday morning, which came alongside the release of the company’s fourth-quarter results, took many in the sector by surprise, as Mr. Entwistle had previously indicated he intended to remain at the head of the company for another year in order to train a new leader, according to two sources with knowledge of the matter. The Globe is not naming the sources because they are not authorized to speak publicly about the matter.
“The change might infuse a reset at Telus, but the timing of the transition comes as a surprise to us as well as internally at Telus from our understanding,” said Bank of Nova Scotia analyst Maher Yaghi in a note to investors Thursday.
John Manley, chair of the Telus board, told The Globe that there was no concern from the board related to Mr. Entwistle’s performance, calling him an “outstanding CEO” with a strong legacy. He said they had discussed “a variety of timelines” related to Mr. Entwistle’s retirement.
However, two sources told The Globe that the board had been growing increasingly concerned with the company’s performance and Mr. Entwistle’s leadership.
The succession search has been ongoing for a number of years, Mr. Manley told The Globe. He said he first talked to Mr. Entwistle about the plan in 2012, and then again several years ago when they started a “refresh” of the process. Telus had retained Zurich-based executive search firm Egon Zehnder International Ltd. since at least 2022.
Last summer, Mr. Manley convened an ad hoc committee on succession to consider options, which included several board members but not Mr. Dodig, who has been a board member since 2022.
The company had been searching for both internal and external candidates, reviewed dozens of names provided by first search firm and interviewed multiple candidates, Mr. Manley said. Yet these searches did not yield a qualified CEO candidate.
Mr. Manley said he asked Mr. Dodig if he would be willing to be considered for the role last fall.
He said Mr. Entwistle was informed several weeks ago. According to two sources, Mr. Entwistle was surprised by the news.
The broader board only became involved when the ad hoc committee was prepared to make a recommendation, which they did Wednesday.
“When we brought the recommendation to the whole board, he wasn’t in the room,” he said of Mr. Dodig.
Though Mr. Dodig does not have experience leading a telecom company, he had experience turning around an underperforming business as CEO of CIBC.
Now, he is taking on the business in the middle of major transformation amid a challenging time for the industry as a whole, as population growth has slowed and wireless prices have been forced down by greater competition. Analysts say Mr. Dodig could take a different approach from his predecessor.
Canadian telecoms eye paying down debt amid sluggish market
“Under Darren’s leadership we were operating under the assumption that the dividend is sacred and will be defended. The board with a new CEO might have other prerogatives on capital allocation,” Mr. Yaghi said.
“We think a dividend cut and asset sales or business exits (Health, Agriculture) are more likely under new leadership,” said Bank of Montreal analyst Tim Casey in a note to investors Thursday morning.
After winding down its years-long fibre buildout, the company is now actively working toward possible spinouts of several of the divisions that Mr. Entwistle backed and hoped to monetize during his tenure. That includes the company’s health division, Telus Health, which Mr. Entwistle championed in particular.
Under his leadership, the company spun out Telus International, now branded as Telus Digital, in 2021. However, the company bought that business back last year after its share price dropped by 90 per cent in the wake of industry-wide pressures on customer-service businesses.
Last spring, the company said it would slow the pace of growth of its dividend. In the fall, after analysts said the company’s plan was not sustainable, the company initially dug in its heels before changing course a week later by saying it would pause dividend increases.
In conjunction with his retirement as CEO, Mr. Entwistle will also step down from the board on June 30.
“It has been a tremendous privilege to be a member of the Telus team,” Mr. Entwistle said in a statement.
“This team shows up every day to serve our customers, support our communities and build a company that Canadians can trust. To be part of this extraordinary team, and to support them, has been the greatest honour of my career,” he said.
In support of the transition, Mr. Entwistle will act as an adviser to Mr. Dodig until April, 2027.
Mr. Dodig served as president and CEO of CIBC from 2014 to 2025. “I am excited to build on Darren’s legacy and by the opportunity to lead Telus in its exciting next chapter,” Mr. Dodig said in a statement.