CEO of CSX to Retire as Hunter Harrison Negotiations Continue
The shakeup at CSX Corp. took another twist Feb. 21 when current CEO Michael Ward and President Clarence Gooden announced they're leaving the railroad at the end of May, another wrinkle that could affect the push from private investor Paul Hilal to install former Canadian Pacific CEO Hunter Harrison as CSX’s top executive. The company also announced 1,000 layoffs.
“CSX this morning announced to its employees the reduction of 1,000 management employees through an involuntary separation program, which will be completed by mid to late March. Enhanced separation benefits are being extended to those impacted employees. A majority of those impacted employees are in Jacksonville across multiple locations and subsidiaries but affected employees also are in our field organization. Upon further study and evaluation, we will know both the Jacksonville and field management employee impact,” a company spokesman said
Ward, 66, planned to retire last year, but he extended his term until 2019 when his replacement-in-waiting, Oscar Munoz, left to run United Airlines. However, Hilal, of Mantle Ridge, entered into negotiations in January with the CSX board of directors to replace Ward with Harrison. The two sides have been unable to reach an agreement on a contract for Harrison, and a special meeting on the issue was scheduled for mid-March.
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Fredrik Eliasson, a 22-year CSX veteran chief sales and marketing officer, has been appointed president.
“The appointment of Mr. Eliasson as president is not intended to pre-empt or otherwise affect any discussions CSX may continue to have with Mr. Hunter Harrison and Mantle Ridge regarding Mr. Harrison becoming the CEO at CSX,” the company wrote in a statement.
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“On behalf of CSX’s board of directors, I want to thank Michael and Clarence for their many years of dedicated service and contributions to our company,” presiding Director Edward Kelly III said. “Michael has helped build CSX into one of the nation’s leading transportation and logistics companies, and Clarence has similarly provided valuable leadership across CSX’s sales, marketing and operations teams. We wish both the best in their retirements.”
Eliasson, 46, has served as chief sales and marketing officer since September 2015. He is responsible for overseeing customer service activities, growing rail-served markets and developing plans for long-term revenue growth. He was CSX’s chief financial officer from 2012 to 2015.
