ST. JOHN'S, N.L. — Derrick Sturge is no longer Nalcor’s executive vice-president and chief financial officer, it was announced today.
Stan Marshall, President and Chief Executive Officer for Nalcor Energy, announced Sturge’s departure from Nalcor in a news release which also stated Sturge is legally entitled to a compensation package of approximately $900,000.
“It is widely known that Nalcor is approaching a time of transition and is reviewing decisions which impact what the future looks like,” the release states.
“This decision was made after discussion between CEO Stan Marshall and Mr. Sturge where it was agreed that an exit from Nalcor Energy is the best next step for both. As such, Nalcor Energy has severed the contract without cause and is obligated to fulfill the terms of Mr. Sturge’s contract.”
Sturge has been with Nalcor Energy for 20 years.
Marshall said Sturge was a valuable member of the executive and finance teams and made significant contributions to the company.
“I thank him for all of the contributions he has made and wish him well for the future,” Marshall said.
Carla Russell has taken on the role and responsibility of acting executive vice president finance and chief financial officer of Nalcor Energy.
Testifying at the Muskrat Falls Inquiry last fall, Sturge said — in connection with the long road to sanctioning for the hydroelectric megaproject — he didn’t know everything about the decisions of the project team.
Sturge was asked about the frustrations he appeared to express in emails in 2012, about not being kept in the loop in some instances, intentional or not.
“There were times, it’s a big project, it’s a complicated organization. I’d say there were times we were out of the loop,” he said of he and his finance team.
He was also asked about emails between himself and Auburn Warren, reporting to him in finance, expressing surprise at not knowing sooner about a public announcement on the federal loan guarantee, when they had worked on it for so long.
He was also unfamiliar with a recommendation that something higher than a “P50” probability factor was recommended for use by Nalcor — a change that would have driven up the project’s total, public cost estimate.
He said he did not know about the $7-billion “final forecast cost” estimate being kicked around by the Nalcor project team in July 2013.
Inquiry co-counsel Barry Learmonth had asked Sturge why he wouldn’t have been told about the project team’s projection.
“I can’t give you an answer,” was the response.
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