The CEO of Suncor Energy Inc. Mark Little stepped down as president and CEO and resigned from the 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 release Friday.
“Suncor is committed to achieving safety and operational excellence in 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.
Suncor announced Thursday that a contractor was killed at its base mine north of Fort McMurray, Alta., the latest in a string of workplace deaths and safety-related incidents that have plagued the energy giant. Since 2014, there have been at least 12 deaths at Suncor sites, more than all of its oil sands competitors combined.
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READ MORE: Contract worker killed at Suncor plant in northern Alberta
Little’s departure also comes less than three months after prominent US-based activist investor Elliot Investment Management wrote a letter calling for an overhaul of Suncor’s board and management. Elliott highlighted Suncor’s safety record, as well as other operational challenges and the company’s lagging stock price.
Elliott has never launched a formal battle for control of Suncor’s board, and the activist investor has been publicly silent on the energy company since the spring.
Under Little’s leadership, 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.
But Josh Young, chief investment officer at Bison Interests, said Little’s sudden departure was proof that “activists somehow rule.”
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“I think it’s indicative that Elliott has more 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 event.”
READ MORE: Suncor’s safety achievements in spotlight as activist investor calls for change
Young added that Little’s days at Suncor may have been numbered even before Thursday’s on-the-job death. He said Elliott – who has a track record of targeting large corporations it sees as underperforming – was likely looking for improved financial performance at Suncor and the company’s efforts so far may not have been enough.
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“It (death on the job) may have been an excuse for the board to fire the CEO,” Young said. “It may not be about safety. It could be about money.”
Suncor said in its news release that Chris Smith, 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 work he has done to guide Suncor through the pandemic and lead our sector’s progressive approach to the energy transition,” said Board Chairman Wilson.
READ MORE: Suncor reports $2.95 billion in profits as oil prices surge
Suncor’s board has formed a committee to conduct a global search to select the company’s next CEO and has engaged a global executive recruiting firm to assist in the process.
Before Friday’s events, Suncor was scheduled to host an “oil sands operations presentation” on July 13 to update investors on the changes it is making to support safe and reliable operations.
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