HF Sinclair CFO Takes Leave Amid Disclosure Probe

Executive Shake-up at HF Sinclair

HF Sinclair's Chief Financial Officer, Atanas Atanasov, has taken a voluntary leave of absence, following a similar move by CEO Tim Go a week earlier. The leadership uncertainty has contributed to a more than 12% decline in the refiner's stock price since the CEO's departure was first announced.

Internal Review Precedes Departures

The events unfolded after an internal review of the company's disclosure processes began on January 26. Concerns were initially raised by CFO Atanasov regarding the CEO's actions. However, the board later developed its own concerns about the conduct of both the CEO and, subsequently, the CFO during the review process, leading both to request a leave of absence.

Market Impact and Company Outlook

The company's shares dropped 4% in morning trading after the CFO's leave was made public. Despite the executive turmoil, HF Sinclair stated that the audit found no issues with its financial reporting or disclosure controls, which it deemed effective. Vivek Garg has been named interim CFO, with Franklin Myers serving as interim CEO. The company expects to negotiate separation agreements with both Go and Atanasov.

Summary and Future Steps

With its top two executives departing, HF Sinclair is navigating a significant leadership transition. The company has moved to reassure investors by affirming the integrity of its internal controls. Market observers will now watch for the appointment of permanent leadership to restore stability.

FAQ

Q: Why did HF Sinclair's CFO and CEO take a leave of absence?
A: Both executives took voluntary leaves after the company's board raised concerns about their respective actions during an internal review of disclosure processes.

Q: What was the impact on HF Sinclair's stock?
A: The company's shares have fallen more than 12% since the CEO's leave was announced, reflecting investor concerns over leadership instability.

Q: Did the review find problems with the company's financial reporting?
A: No, HF Sinclair confirmed the review concluded that its disclosure controls and procedures remain effective, with no issues found in its financial reporting.

Source: Investing.com