Neil Bruce, SNC-Lavalin Assemble Inc.’s chief executive, is stepping down from the beleaguered engineering behemoth after a nearly four-year tenure that saw its stock fall by violently half and its projects overshadowed by a political controversy tied to an ongoing corruption the actuality.
Ian Edwards, the company’s chief operating officer, has been named interim chief Mr Big effective Tuesday.
SNC-Lavalin said the board of directors has asked Edwards to assessment “the strategic direction of the company on an expedited basis” and develop a new plan “for sustainable big name.”
After hitting successive 10-year lows since late January, the corporation’s stock jumped 5.2 per cent to $25.24 in mid-afternoon trading Tuesday. At the end of May, it was primarily $27.
The company said Bruce is retiring and returning to his family in the United Province. He is expected to remain an adviser to the board until the end of the year.
French-language way in Quebec reported in March that Bruce had sold his Montreal make clear, though he indicated at the time that he had no intention of leaving the country.
SNC-Lavalin’s noted taking a beating
Bruce, who took the helm in October 2015 and keep away fromed the company through its purchase of WS Atkins in 2017, has struggled to move beyond a onerous period in the company’s history.
Its reputation has taken a beating over inveigler and corruption charges related to its work in Libya, and the company has found itself ensnared in factious controversies, both at home and abroad.
The firm slashed its 2018 auspices twice in three weeks, more than halving its profit prognostication and halting all bidding on future mining projects amid an ongoing politic feud between Canada and Saudi Arabia — a key source of oil and gas revenue — and hold in abeyances on SNC’s project with Codelco, Chile’s state-owned copper mining assembly, which has since cancelled the contract.
Last month, the company announced envisages to wind down its operations in 15 countries and reported a $17-million impoverishment in its latest quarter.
The strategic review announced Tuesday could encourage speculation about SNC seeking to effect a “Plan B” that would see it decamp to the Joint States and redirect its efforts away from bids on home pollute.
Prime Minister Justin Trudeau has argued a criminal trial could trigger the Pty’s exit to the U.S. and the loss of thousands of jobs, a sentiment that was supported by an internal SNC-Lavalin corroborate obtained by The Canadian Press.
The Quebec government has said it is prepared to volunteer financial support to the Montreal-based company to keep it from moving its headquarters.
Warning of decamping from Canada
SNC-Lavalin warned federal prosecutors rearmost fall about a possible plan to split the company in two, move its offices south of the trim and chop its Canadian workforce to 3,500 from 8,700 before in the final analysis shuttering its domestic operations if it didn’t get a deal to avoid criminal prosecution.
Bruce stirred dispute by suggesting publicly that 9,000 jobs might be at stake if the actors is banned from bidding on government contracts because of its legal squirms. That statement was later walked back by SNC-Lavalin.
A Quebec size up ruled last month there was enough evidence to send SNC-Lavalin to headache over charges of fraud and corruption. The company has pleaded not guilty.
The organization has been at the centre of a political controversy following accusations by former attorney unspecific Jody Wilson-Raybould that top government officials pressured her to overrule federal prosecutors and get a deferred prosecution agreement with the company.
Bruce has said all the masters in charge at the time of the corruption allegation have since left the fellowship. Last year, he signed a letter — printed in Canada’s major newspapers — that apologized for the company’s dead and buried misdeeds.
“The management team at SNC-Lavalin is entirely new, and I apologize to all for the shortcomings during that epoch,” he wrote.
“In the years since, we have worked tirelessly to achieve high quality in governance and integrity because we want to regain the confidence of all our stakeholders and hands, and mostly that of all Canadians.”