Published: Wed, March 08, 2017
Markets | By Erika Turner

Hunter Harrison in, Michael Ward out as CSX CEO

Hunter Harrison in, Michael Ward out as CSX CEO

Moreover, three incumbent directors at the company intend to complete their tenure at the board at or before the conclusion of the 2017 annual meeting.

In his four years as CEO of Canadian Pacific, Harrison cut staff, stored locomotives and pushed the railroad to run longer and faster trains to reduce fuel and labour costs.

Back on February 21, CSX announced that its then CEO and President would both retire from the firm at the end of May, and that current Chief Sales and Marketing Officer Fredrik Eliasson has been appointed president. CSX's stock has risen by 35 percent since mid-January, when news of Hilal's plans plans first broke. As a result, the board will be made up of 13 members. Apparently, Mantle Ridge had agreed to protect Mr. Harrison "on an interim basis" with respect to $84 million of compensation and benefits forfeited by Mr. Harrison in his separation from Canadian Pacific Railway Limited, "on terms that would permit him to work at CSX".

Edward Kelly, the company's lead independent director on the board, will replace Michael Ward as chairman, the people said. The options will vest over four years.

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It's also associated with past labor movements , which also fought for human rights - particularly for immigrant workers. For these women , missing a day of work can mean the difference between food on the table and an empty refrigerator.

Because Harrison's appointment and the compensation issues will be considered at the annual meeting, CSX canceled a special shareholders meeting that was to be held prior to the annual meeting. Mantle Ridge's 4.9% stake in the company is now worth $US 2.3bn.

What was widely expected in freight railroad and intermodal circles became official yesterday, when Class I railroad carrier CSX officially announced that E. Hunter Harrison was named CEO of Jacksonville, Fla. -based CSX. In his last two undertakings at Canadian National and Canadian Pacific, he delivered 321% and 350% total shareholder return, respectively'. CSX will submit this to shareholders for an advisory vote at the company's 2017 annual meeting.

Harrison developed the concept of so-called precision railroading while at Illinois Central, running shipments and carloads on fixed timetables to ensure reliable deliveries. As CEO of CN, he implemented scheduled railroading and later refined it to precision railroading, which he implemented at CP when he was CEO there.

Harrison, said this approach was "proven to improve safety, create better service for customers, produce a proud and winning culture for employees, and generate exceptional, lasting value for shareholders". He resigned as CP CEO earlier this year.

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