Drivers line up at the Pioneer gas station in Carleton Place, Ont., on Saturday, Nov. 8, 2008.Sean Kilpatrick/Canadian Press
Days after a New York hedge fund asked Parkland Corp. PKI-T to revamp its board of directors, the fuel retailer has added an industry veteran to its ranks.
Michael Jennings, who stepped down as CEO of U.S. refining giant HF Sinclair last year, will join Calgary-based Parkland’s board of directors on February 10, the company announced Tuesday.
That’s despite Engine Capital LP, which owns 2.5% of Parkland, publicly asking the company’s board in a letter Monday to stop “attempting to entrench itself” and bring in new board members. The company declined to comment on the appointment.
Parkland said Jennings’ appointment is part of the company’s “ongoing and strategic board renewal process.” However, Engine said in the letter that “the current board should not be responsible for its own refresh process.”
“While some of the current board members may have achieved success as executives at large companies, we believe that many lack the governance structure and financial sophistication to effectively oversee Parkland. “We are considering this,” the letter states.
Engine has been trying to convince Parkland to cut costs and sell assets since last year. The company had previously set a goal of selling $500 million in assets by the end of 2025, but reaffirmed that goal after Engine made its request public.
Late last year, two Parkland directors were appointed to the board by Cayman Islands-based Simpson Oil Co., a family-run company that is Parkland’s largest shareholder and owns a 19.55 percent stake. He resigned after just seven months.
Michael Christiansen and Mark Halley resigned after Parkland refused to appoint one of them as chairman, people said at the time. The Globe and Mail did not identify the sources because they were not authorized to comment on board governance.
Since the two resigned, Simpson and Parkland have publicly disagreed over the current state of the governance and nomination agreement, which effectively prohibits Simpson from soliciting any activity or acquisition bid for Parkland. Simpson claims those agreements are no longer valid, while Parkland claims they are still legally enforceable. In the letter, Engine asked Parkland “not to embark on a strategy of wasting millions of dollars by litigating” disputes.
Parkland owns more than 4,000 gas stations and electric vehicle charging terminals across Canada, the United States and the Caribbean, and also operates On the Run convenience stores. The company acquired the majority of its Caribbean presence from Simpson when it acquired SOL Refueling Chain in two deals worth a combined $2.35 billion in 2018 and 2022.
Simpson acquired ownership of Parkland through these transactions.
Mr. Parkland is not the first director position Mr. Jennings has assumed since his retirement. In April 2023, he joined the Board of Directors of Plaza Group. Plaza Group is an international fuel distribution company headquartered in Houston, Texas, whose largest customers include Canada’s Cenovus Energy. He lives in Dallas with his wife Stephanie and his three adult children.