Santos ex-finance chief blames 'untenable' leadership environment for exit

Sherry Duhe, former chief financial officer of Santos Australia, says that she quit the company after only a year because it was "untenable" in terms of leadership and due to her disagreements with Kevin Gallagher.

Santos announced Duhe’s departure on 14 October, less than one month after a bid of $18,7 billion for the company by Abu Dhabi National Oil Company failed.

In response to a question about the reasons behind her departure, Duhe shared the message she sent out to Santos employees and other parties regarding her decision to depart.

Duhe wrote in this message: "I tried my best to help Santos, but I couldn't reconcile the differences in my leadership style with Kevin's."

The message stated: "Sadly, when I first approached Kevin with my intention to quit last week, he and Kim asked me to reconsider and asserted that Kevin wanted to try and improve his leadership style so that I would remain."

Kim Lee is Santos’ executive vice president of people and brand.

Duhe's email said: "But I was told over the weekend that my services were no longer required effective immediately by the board chairman."

Santos' spokesperson stated that the company has nothing more to say about the statement made by Gallagher to the Australian Stock Exchange on October 14 in which Duhe left to "pursue his other interests". Santos has named Lachlan Harris as its acting finance chief.

Duhe claimed that she informed Santos Chairman Keith Spence of her resignation when he told Duhe her services would no longer be required. She refused to sign the non-disclosure contract.

She said, "I declined. I made it clear to him that if he asked me to leave Kevin's company, I would be upfront about the reasons. It all came down to an unsustainable culture and leadership environment."

Gallagher, who has been leading Santos since almost a decade now, has seen the company face three takeover offers worth billions of dollars that did not go through. Spence has served as Santos chairman for over seven years.

Analysts saw Duhe as the potential successor of Gallagher.

She was previously the chief executive of Newcrest Mining, which was purchased by Newmont in 2023 for almost $17 billion. Santos appointed her finance chief in September of 2024.

The Australian Financial Review was the first to report on Duhe's messages. (Reporting and editing by Scott Murdoch, Sumeet chatterjee, and SonaliPaul)

(source: Reuters)