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Nalcor CFO let go, gets $900K compensation package

Nalcor Energy said it "severed without cause" the contract of Derrick Sturge, who has been with the Crown corporation for 20 years, and that he is entitled to the six-figure payout.

Derrick Sturge had been with Nalcor for 20 years

Derrick Sturge, who was Nalcor Energy's vice-president of finance and chief financial officer, testified at the Muskrat Falls inquiry that he at times 'felt out of the loop' on the project. (Terry Roberts/CBC)

Nalcor Energy's chief financial officer has been let go from the company — and is entitled to a $900,000 compensation package. 

Derrick Sturge had been with the Crown corporation for 20 years. 

"Nalcor Energy has severed the contract without cause and is obligated to fulfil the terms of Mr. Sturge's contract.… [He is] is legally entitled to a compensation package of approximately $900,000," reads a media release issued by Nalcor Thursday afternoon. 

The shakeup comes as Nalcor approaches "a time of transition" and was made on the heels of discussions between Sturge and Nalcor CEO Stan Marshall, "where it was agreed that an exit from Nalcor Energy is the best next step for both," according to the statement. 

Marshall also thanked Sturge for his contributions. 

Carla Russell has been named the acting executive vice-president and CFO of Nalcor. 

'Out of the loop' at times: Sturge

In October 2018, Sturge told the Muskrat Falls inquiry he was often kept in the dark on many issues related to planning for Muskrat Falls.

"Whether it's purposely or not it's hard to know," he said at the time. 

"It's a big project, it's a complicated organization — I'd say there were times we were out of the loop."

One specific example that Sturge cited during his testimony was the issue of the $500-million strategic reserve that was never included in the original $6.2-billion estimate for the Muskrat Falls megaproject. Sturge said he was not aware of it.

"I feel a bit dumb on this," Sturge said at the time. "How could I have not have heard of this thing? But I cannot recall hearing [about] the $500 million."

Former Nalcor president and CEO Ed Martin testified at the Muskrat Falls inquiry in December 2018. (Terry Roberts/CBC)

When he took the stand two months later, former Nalcor CEO Ed Martin was defiant in his testimony, addressing Sturge's comments. 

"It's not my job to keep him in the loop. If you're not in the loop, go get in the loop. He's the CFO of the company. Get on with it," Martin said.

Read more from CBC Newfoundland and Labrador

With files from Terry Roberts