Canada’s Suncor Energy (SU) has expanded its board of directors and announced plans to sell
its retail gas stations as part of a deal to appease activist investor Elliott Management.
Suncor said it has added former BHP Billiton (BHP) executive Ian Ashby, ex-Devon Canada
(DVN) President Chris Seasons, and former Talisman Energy Executive Vice-President Jackie
Sheppard to its board of directors.
Suncor also said that Elliott Management has the right to nominate an additional director to its
board if the company doesn’t meet certain performance requirements by year’s end.
Suncor added that it is undertaking a strategic review of its retail business, which includes 1,500
Petro-Canada gas stations located across the country. Suncor’s retail business has been
estimated to be worth about $11 billion.
The changes at Suncor Energy come three months after Elliott Management took a stake in the
Calgary-based oil and gas giant.
Elliott Management is a New York-based hedge fund run by billionaire investor Paul Singer, who
is one of the most aggressive shareholder activists in the U.S. Elliott Management took a 3.4%
stake in Suncor in April and said it would push to add five new directors to the company’s board,
while calling for a review of the leadership team and retail gas station chain.
Elliott Management also raised concerns about safety and operational problems at Suncor,
noting that there have been 12 fatalities at Suncor Energy sites since 2014.
On July 8, Suncor Energy fired chief executive Mark Little, who was replaced on an interim
basis by executive vice-president for downstream operations Kris Smith. Little’s departure
followed the death of a contractor at Suncor Energy’s Base Plant mine.
Year to date, Suncor Energy’s stock is up 20% at $39.74 a share.