The back-and-forth between convenience retailer and fuel marketer Parkland Corp. and its largest shareholder, Simpson Oil Ltd., continues.
Simpson Oil put out a statement Wednesday criticizing Parkland President and CEO Bob Espey’s delayed departure plan, claiming that, “Out of desperation, the board is deploying a half-baked CEO transition in an effort to distract shareholders’ attention.”
Parkland announced Wednesday that Espey would resign after 14 years leading the company.
Espey will stay on until the appointment of a new CEO or the completion of the strategic review or Dec. 31, whichever occurs first, Parkland said. The Parkland Board of Directors has formed a CEO search committee comprised of independent directors to oversee an extensive executive search process to replace Espey. Parkland made Michael Jennings, who was previously chair of the board, executive chair.
Simpson Oil said it has already identified several “high-quality CEO candidates” and said one of its nominees to Parkland’s board, Mark Davis, could step in as interim CEO to ensure a smooth transition.
- Parkland Corp. is No. 38 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
Board of Directors
Both Parkland and Simpson Oil have also released presentations that make the case for why their nominations for the Parkland Board of Directors are the best choice.
This comes ahead of Parkland’s annual general meeting on May 6, where shareholders will elect the board of directors, among other items, according to a notice on Parkland’s website.
Parkland’s nominees for election at the upcoming shareholder meeting are current board members Felipe Bayon, Nora Duke, Sue Gove, Tim Hogarth, Richard Hookway, Angela John, Jennings, Espey, James Neate and Mariame McIntosh Robinson. These are members of the board that decided to initiate a strategic review of Parkland to identify opportunities to maximize value for all shareholders. This could include asset divestments, acquisitions, transformative business combinations and a sale of the company.
Parkland is also nominating Karen Stuckey, Brian Gibson and Michael Christiansen, who are among Simpson Oil’s nominees.
Simpson is nominating Monty Baker, retired partner, PWC; Christiansen, investment manager, The Simpson Group; Davis, former president and CEO, Chemtrade Logistics Income Fund; Jackie Doak, director, Dart Family Office; Chris Folan, former managing director, global investment banking, CIBC Capital Markets; Gibson, corporate director and investment consultant; Marc Halley, investment manager, The Simpson Group; Darcy Morris, co-founder and CEO, Ewing Morris & Co. Investment Partners; and Stuckey, principal, Askher Consulting.
Christiansen and Halley were previously on the board of directors but left in January 2024.
Simpson Oil, which holds 19.8% of Parkland’s shares, has said Parkland is in urgent need of a refreshed board, “one that is aligned with shareholders, provides independent oversight, and supports a leadership team focused on value creation.”
“At a pivotal time for Parkland, and faced with the incumbent board’s lamentable track record, shareholders should ask: is this a board that can be trusted to make the right decisions about leadership and undertake a credible strategic review?” Simpson Oil asked. “The answers are clear. The search for a new CEO and the conduct of a strategic review are best led by a refreshed board that has the confidence of shareholders.”
Parkland in a news release on Monday refuted Simpson Oil’s claims, saying its board is capable of completing the strategic review.
“This is a clear attempt by a minority shareholder to seize full control of Parkland without offering a control premium to its fellow shareholders—and without the experience or qualifications required to oversee a complex strategic review,” Jennings, executive chair of Parkland, said. “The hand-picked Simpson dissident slate lacks independence, expertise and credibility. In contrast, Parkland’s board is highly independent, has significant and relevant expertise, and is committed to advancing a thorough process that delivers value for all shareholders—not just one.”
Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas. It has more than 4,000 retail and commercial locations across Canada, the United States and the Caribbean region. This includes about 210 company-operated c-stores in the United States, under brands including On the Run. In September, Parkland said it would sell its struggling Florida retail and commercial businesses.
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