Little’s departure is effective immediately, the Calgary-based energy company said in a statement Friday. “Suncor is committed to achieving safety and operational excellence across our business, and we must recognize where we have fallen short and recognize the critical need for change,” said board chairman Michael Wilson. On Thursday, Suncor announced that a contractor was killed at its base mine north of Fort McMurray, Alta., the latest in a string of workplace deaths and safety incidents that have plagued the energy giant. Since 2014, there have been at least 12 deaths at Suncor facilities, more than all of its oil and sands competitors combined. Story continues below ad READ MORE: Contract worker killed at Suncor’s northern Alberta site Little’s departure also comes less than three months after well-known US-based activist investor Elliot Investment Management wrote a letter calling for an overhaul of Suncor’s board and management. Elliot highlighted Suncor’s safety record, as well as other operational challenges and the company’s lagging stock price. Elliott has never launched a formal proxy battle for control of Suncor’s board, and the activist investor has been silent publicly about the energy company since the spring. Under Little’s stewardship, Suncor has announced a number of initiatives aimed at improving safety at the company, including a third-party review and the implementation of new fatigue management and crash avoidance technology. But Josh Young, chief investment officer at Bison Interests, said Little’s sudden departure was proof that “activists are somehow responsible.” Trending Stories
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“I think it’s indicative that Elliott is more in control than you think,” Young said in an interview. “There was probably an expectation that safety would be further prioritized and the activist investor found it unacceptable to have an additional fatality.” READ MORE: Suncor’s safety record in spotlight as activist investor calls for change Young added that it’s possible Little’s days at Suncor were numbered even before Thursday’s workplace death. He said Elliot — which has a history of targeting large companies it views as underperforming — is likely looking for improved financial performance at Suncor, and the company’s efforts so far may not have proved enough. Story continues below ad “This (the workplace death) may have been an excuse for the board to fire the CEO,” Young said. “It is possible that this is not about security. It’s likely to be about money.” Suncor said in its press release that Kris Smith, who is currently executive vice president of Suncor’s Downstream division, has been named interim CEO. The company also thanked Little, who joined Suncor in 2008 and has been CEO since 2019, for his years of service and wished him well. “We commend Mark for his professionalism and the outstanding job he has done to guide Suncor through the pandemic and drive our sector’s progressive approach to the energy transition,” said Chairman Wilson. READ MORE: Suncor reports $2.95 billion profit as oil prices rise Suncor’s board of directors has formed a committee to conduct a global search to select the company’s next CEO and is engaging a global executive recruitment firm to assist in the process. Before Friday’s events, Suncor was scheduled to host an “oilsands operational presentation” on July 13 to update investors on changes it is making to support safe and reliable operations. 2:00 Canadian oil giants pressured to invest huge profits in jobs, clean energy Canadian oil giants pressured to invest huge profits in jobs, clean energy – May 10, 2022 © 2022 The Canadian Press
