When Hunter Harrison retired as CEO of Canadian National Railway Co. in 2009, he planned to return to his estate in Connecticut and take it easy, focusing on charitable work, his horse-breeding business, and maybe writing a book.
But some people just aren’t very good at taking it easy. Less than two years later, Mr. Harrison was tapped by activist investor Bill Ackman to lead CN’s chief competitor, Canadian Pacific Railway Ltd., and he gladly accepted.
Canadian Pacific Railway Ltd. said Wednesday it had extended the contract of its chief executive, Hunter Harrison, by an additional year until 2017.
“When Hunter was brought in to lead the transformational change of this iconic company, the agreement was for four years, plus an option for an additional year,” said Gary Colter, CP’s recently-appointed chairman, in a statement.
After burning through his last set of aggressive objectives about two years ahead of schedule, Hunter Harrison said Canadian Pacific Railway Ltd. needs a new five-year plan.
“There’s a lot of runway left here,” Mr. Harrison, CP’s chief executive, said on a conference call Wednesday.
TORONTO/CHICAGO — Veteran railroad boss Hunter Harrison has won over many critics since taking over as chief executive of Canadian Pacific Railway, but he still has unfinished business – creation of a consolidated North American railway – and he is running out of time to do it.
That might explain why CP, Canada’s No. 2 railway with extensive operations in the United States, and the No. 3 U.S. railway, CSX Corp, have been talking about combining, even though such a deal would face tough regulatory barriers and alarm customers.
Canadian Pacific Railway Limited (USA) (CP) reported third-quarter earnings before the market opened Tuesday, missing analysts’ expectations for both earnings per share (EPS) and revenues. Following which, the stock opened down 1.2%.
By David Hunkar: Canadian National Railway (CNI) and Canadian Pacific Railway (CP) are the major railroads in Canada. Activist investor Bill Ackman of hedge fund Pershing Square Capital Management has initiated a corporate battle to take control of the Canadian Pacific railroad and implement management changes.
Reduce operating ratio to mid-60s by midyear 2016
Reduce workforce by 23% by 2016 – about 4,500 positions
Strategic review of western portion of DM&E and D&H
Increase average train length and weight by 30%
Move headquarters to Ogden Yard north of Calgary in early 2014
Around mid-July, just weeks after Hunter Harrison took over as chief executive of Canadian Pacific Railway Ltd., the venerable railroader met with about
By Takeover Analyst:In previous articles, I have expressed my bullish outlook on the rail industry. In this one, I argued, frankly, that "railroad stocks are heading skyward". Satiating my interest in railroads with my background in proxy fights, it is interesting to watch the battle going on at Canadian Pacific (CP).