Report: CSX in Talks With Railroad Exec Hunter Harrison About Taking Top Spot at Company
CSX is in talks with a railroad executive who could end up taking over the company’s top spot, according to published reports. The Wall Street Journal reported Jan. 29 that CSX officials met in Atlanta on Jan. 27 with Hunter Harrison, who recently retired as CEO of Canadian Pacific Railway.
There, according to the Journal, Harrison presented his vision for CSX as he seeks to replace Michael Ward, CEO of CSX since 2003.
RELATED: Canadian Pacific's Wallace takes leave, could join Harrison atop CSX
The Jacksonville railroad would not confirm or deny the meeting but offered this statement:
“As we have said previously, CSX is committed to engaging with shareholders in constructive dialogue, hearing their input directly and being open to sound, actionable ideas. The board will continue to represent the needs of all shareholders as it evaluates any ideas put forth as it pursues the long-term success of the company.”
Harrison is allied with Paul Hilal, whose Mantel Ridge has reportedly raised $1 billion in order to buy a large stake in CSX. Part of the discussion included Mantle Ridge’s request for more than three seats on the company’s 12-person board of directors. Two members of the current board were at the meeting, according to the Journal.
The deadline for investors to nominate directors is Feb. 10, but that deadline could be extended.
Harrison, 72, who also has led Canadian National and Illinois Central railroads, surprised the railroad industry earlier this month by retiring earlier than expected from Canadian Pacific. He also gave up benefits estimated at $89 million to $110 million in order to be released from his noncompete agreement.
Talk of his interest in CSX grew quickly after that.
