Suncor boss Mark Little stepping down 'effective immediately'

Calgary-based oil giant Suncor Energy announced Friday that itschief executive Mark Little is stepping down, stating the move was "effective immediately."

The company said its boardand Little mutually agreedhe would departas president and CEO and resign from the board. Suncor's executive vice-president ofdownstream operations, Kris Smith, has been named interim CEO.

The developmentcomes a day afterOccupational Health and Safety announced it isinvestigatingthe death of a26-year-old contractorwho was struck by equipment at Suncor's Base Mine near Fort McMurray, Alta.

Thursday's death wasthe fifth workplace fatalityat a Suncor site in Alberta since 2021.

Suncor did not mention the incidents in its news release Friday but did discuss safety as a priority at the company.

"Suncor is committed to achieving safety and operational excellence across our business, and we must acknowledge where we have fallen short and recognize the critical need for change," said board chair Michael Wilson in a statement.

"We commend Mark for his professionalism and the exceptional work he did to guide Suncor through the pandemic and lead our sector's progressive approach to the energy transition.

"We thank him for his years of service with the company and wish him well."

Criticsays company requires 'real changes'

Earlier this spring, Suncor found itself in the crosshairs of well-known U.S.-based activist investor Elliot Investment Management, which wrote a letter calling for an overhaul of Suncor's board and management. Elliot highlighted Suncor's safety track record, as well as other operational challenges and the company's lagging share price.

Elliot declined to comment Monday on the latest developments at Suncor.

But Eight Capital analyst Phil Skolnick, who downgraded Suncor's stock to a "sell" rating on Monday, said in a note that Suncor requires "real changes," not just a new CEO. He pointed out thatat least 12 deaths have occurred at Suncor sites since 2014, whichis "something that we have never seen in the 25 years of covering the sector."

"The issue isn't a one-person situation," Skolnick wrote. "This is about the corporate culture where accidental deaths have plagued the company even prior to Mr. Little's tenure as CEO (which) began in 2019."

Little joined thecompany in 2008and served in several leadership roles in the company's oilsands and international and offshore operations prior to moving to the top of Suncor's ranks.

He moved from chief operating officer to become president of the company in late 2018 and assumed the post of chief executive officer a few months later.

Suncor said ithas formed a CEO search committee to conduct a global search to select the company's next top executive. It said it'sengaging a global executive recruiting firm to assist with this process.