Parkland Corporation announced Wednesday that Bob Espey will step down as president and CEO, following intensifying pressure from Simpson Oil Limited, its largest shareholder. The move comes amid controversy over Espey’s continued leadership, following years of underperformance and two major trading losses.

Simpson, which owns 19.8% of Parkland’s shares, strongly criticized the timing and nature of Espey’s departure, calling it a delay tactic to avoid accountability. Rather than terminating Espey outright, Parkland’s board chose to keep him in place through the end of 2025 or until a replacement is found, Simpson contended.

Simpson has characterized the announcement of his departure as an attempt to distract from the company’s mismanagement and trading losses, the most recent being a $55-million charge tied to its exit from California’s carbon- credit market.

Michael Jennings, previously chair of the board, has been appointed executive chair.

“Over the past few months, it became clear that stepping down and announcing my departure may help bring resolution to the situation with Simpson Oil Limited and benefit all shareholders,” said Espey. “I remain deeply committed to Parkland and will support a smooth transition to new leadership. I look forward to working closely with Michael in his new role as executive chair.”

While Parkland emphasized his role in overseeing a strategic review, Simpson has criticized Jennings’ track record, particularly referencing his past underperformance at HF Sinclair during stints as president, CEO, and executive chairman.

Simpson claims that Espey’s resignation was not a proactive decision by Parkland’s board, but rather a move forced by legal disclosure obligations triggered by the trading loss. The firm argues that, if not for the size of the loss and its disclosure requirements, the resignation announcement would have been delayed until after shareholder votes were cast at Parkland’s annual general meeting in May.

Simpson also stated it had already identified several strong CEO candidates and proposed Mark Davis—one of its own board nominees—as an interim CEO. The company insists that a refreshed board is essential to conduct a credible CEO search and strategic review, arguing the current board lacks the credibility and oversight required.

Both companies are now preparing for a showdown over Parkland’s board composition at the upcoming annual general meeting in May, setting the stage for a heated contest over the future of the Calgary-based company, which owns and operates fuel stations and convenience stores across Canada and the U.S.

In 2024, Simpson won a ruling from the Ontario Superior Court, freeing it from a 2019 governance agreement that had prevented it from engaging in activism or soliciting bids for the company.

As a result, Simpson called for Parkland to explore a sale.

The shareholder now argues that the only way to hold the current board accountable is through sweeping change.

Earlier this year, Parkland appointed two independent board members to appease Simpson, while reiterating an invitation for the company to rejoin the board.

Instead, Simpson is proposing a new slate of nine directors, including several with deep industry, investment, and governance experience. Simpson’s proposed directors are Monty Baker, Mark Davis, Jackie Doak, Chris Folan, Marc Halley, and Darcy Morris, alongside Christiansen, Gibson, and Stuckey.

Parkland operates about 4,000 gas stations and electric-vehicle charging sites across Canada, the U.S., and the Caribbean. The company also owns the On the Run convenience-store chain and M&M Food Market. Much of the company’s Caribbean network was acquired from Simpson when Parkland purchased the SOL refuelling-station chain in 2018 and 2022 for a combined $2.4 billion.

U.S.-based activist hedge fund Engine Capital has also called for a new Parkland board to oversee the review process,

Pictured: On the Run convenience store in Toronto.

Photo: PenguinLens

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