Suncor Energy Inc. CEO Mark Little stepped down as chairman and chief executive officer and resigned from its board of directors just one day after the company announced that its oil sands operations had suffered another workplace fatality.
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 Chairman of the Board Michael Wilson.
On Thursday, Suncor announced that a contractor had died at its Base Mine north of Fort McMurray, Alta., the latest in a series of workplace deaths and safety incidents that have plagued the energy giant. Since 2014, there have been at least 12 fatalities at Suncor sites, more than all of its oil sands rivals combined.
Little’s departure also comes less than three months after well-known US-based activist investor Elliot Investment Management wrote a letter calling for a review 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.
Elliot never launched a formal proxy battle for control of Suncor’s board, and the activist investor has been publicly silent about the energy company since the spring.
Under Little’s direction, Suncor announced a series of initiatives aimed at improving safety at the company, including a third-party review and the implementation of new fatigue management and collision avoidance technology.
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But Josh Young, chief investment officer at Bison Interests, said Little’s sudden departure is proof that “activists are in charge in a way.”
“I think it’s indicative that Elliot 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 fatal event.”
Young added that Little’s days at Suncor may have been numbered even before Thursday’s workplace death. He said Elliot, who has a history of targeting large corporations he sees as underperforming, is likely looking for better financial performance at Suncor, and the company’s efforts so far may not have been enough.
#SuncorEnergy says Chairman and CEO Mark Little resigned, resigns from board. #Safety in the workplace #abenergy #oilsands
“This (workplace death) may have been an excuse for the board to fire the CEO,” Young said. “It may not be about security. It may 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 exceptional work he has done in guiding Suncor through the pandemic and leading our industry’s progressive approach to the energy transition,” said Chairman of the Board Wilson.
Suncor’s board has formed a committee to conduct a global search to select the company’s next CEO and is hiring a global executive recruiting firm to help with the process.
Prior to Friday’s events, Suncor was scheduled to hold an “oil sands operating presentation” on July 13 to update investors on the changes it is making to support safe and reliable operations.
This report from The Canadian Press was first published on July 8, 2022.
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