CSX Postpones Investors Day, Sending Company Stock Sliding
Just one week after CSX Corp. delivered some positive news in its quarterly earnings report after service disruptions this summer, investor confidence was rocked again when the railroad carrier abruptly postponed the official Investors Day on Oct. 30.
The news prompted some investors to speculate about the health of CEO Hunter Harrison, who will turn 73 on Nov. 4. During the negotiations to sign him to a lucrative four-year contract, it was revealed that Harrison uses a portable oxygen tank. At a recent hearing before the Surface Transportation Board, the executive wheeled around the tank with a handle similar to a rolling backpack or luggage, with a tube supplying air through his nose.
However, Harrison told Bloomberg News that the decision was absolutely unrelated to his health.
Just hours earlier, CSX Chief Operating Officer Cindy Sanborn and Chief Sales and Marketing Officer Fredrik Eliasson officially resigned, effective Nov. 15.
James Foote, who worked under Harrison at Canadian National Railway, was hired to assume both positions.
“Given those changes, we were concerned that Jim. being new to the company. wouldn't have time to really prepare and say something meaningful," Harrison said to Bloomberg. "If something were to happen to me, Jim is a person we feel like could just carry on and miss very few licks, if any, in a succession plan."
General Counsel Ellen Fitzsimmons also will leave the company in November. Nathan Goldman, the company’s current vice president risk compliance and general counsel, will take over the job.
Nevertheless, the uncertainty shook investors and caused the stock to fall 2.5% before the market opened Oct. 26 and 4% when trading began on Wall Street.
