CP CEO Hunter Harrison to Step Down Immediately

The total value of benefits and awards forfeited by Mr. Harrison is approximately C$118 million,

Holy cats.

Translated to me it sounds like he's going somewhere else.... but can't recruit CP employees.

Sounds like the translation is that he is severing all ties with CP, including all his retirement and benefits, in order to modify his non-compete agreement with CP, so as to "allow him to pursue opportunities involving other Class 1 Railroads." He must have some real sweet deal waiting at NS, CSX, UP, BNSF, CN, or KCS to make this worthwhile. Can't imagine what that could be. Given that he's 72 years old, it must be something remarkable to be worth walking away from over 100 million dollars. Hard to believe he's going to be able to make that up that kind of loss. Be interesting to see what he does. One thing for sure - if he dies suddenly, his family is going to be plenty P.O.ed. 

He is going to do his mischief going after CSX with some big time wheeler-dealer.

I can't imagine BNSF or UP needing him--they're pretty well run as is.

Kent in SD

The Bellcaptain posted:

...

Mr. Harrison had approached the Board to discuss his retirement from CP and potential related modifications to his employment arrangements that would allow him to pursue opportunities involving other Class 1 Railroads. A special committee of the Board oversaw discussions with Mr. Harrison. Following negotiations, receipt of independent legal advice, and careful deliberation, the special committee recommended to the Board that CP enter into a separation agreement with Mr. Harrison.

... The total value of benefits and awards forfeited by Mr. Harrison is approximately C$118 million...

WOW!!!  That's roughly $89M USD by today's exchange rate.  So he's obviously got something cooking that's gonna quickly make it worth his while.  Money tends to make everything right in these kinds of dealings.    And few, if any, of us here will ever travel in those circles.  Amazing, nonetheless, how these deals get made.  Also shows how seriously companies take their non-compete agreements.

FWIW, most folks as basic employees simply sign the employment agreement on Day 1 of their job, without giving things a second thought -- or at least that's how it once was years (decades?) ago when folks started a new job -- especially for the common Joe/Jane worker.  Nowadays, it's something to be examined with close scrutiny BEFORE one even accepts a position of employment.  And for a C-level executive position where one is under contract for a period of time, it's one of the most critical things to construct during the negotiation process.

David

steam fan posted:

Translated to me it sounds like he's going somewhere else.... but can't recruit CP employees.

It's either that, or CP has something on him and this is the only way he stays out of prison. 

A very odd situation indeed.

OGR Webmaster posted:

...

A very odd situation indeed.

Very true.  I don't think I've ever seen a press release crafted with such careful "word-smithing".  Candidly revealing yet with a hint of mystery at the same time.

David

Good ridden, I hope he stays retired.

trains magazine is now reporting he is headed to csx.

http://trn.trains.com/news/new...-hunter-retires-edit

bigdodgetrain posted:

trains magazine is now reporting he is headed to csx.

 

http://trn.trains.com/news/new...-hunter-retires-edit

Yes. Other "reports" indicate he is looking to gain a "senior management position at CSX". 

He got busted doing bad things and The board kicked him out without his golden parachute. Failed hostile takeover attempt or worse (just me spitballing speculation). Somebody has serious leverage on him.

Now he is back after CSX like I figured he would be and run it in to the ground like CP. I read they were working their crews to death and the engines look like crap.   Canada is, and will be, a sideshow, the US is the Big Time and HH is definitely BIG TIME !!!

Well the stock price will go up.  CSX is the lowest valued class 1 publicly held railroad stock out there.

OGR Webmaster posted:

steam fan posted:

Translated to me it sounds like he's going somewhere else.... but can't recruit CP employees.

It's either that, or CP has something on him and this is the only way he stays out of prison. 

A very odd situation indeed.

The latter is my reading of this. This is an unheard of retirement notice and surrender of benefits, at his age, even if he is going to a competing road. On top of it, he takes vacation immediately until January 31? I read that as "clean out your desk and get out of here!".

There is an article in the Wall Street Journal that says Harrison is teaming up with Paul Hilal, an activist investor, in an attempt to shake up management at CSX.  Hilal has an investment fund that has raised almost $1 billion, and they would like to put Harrison in a senior management position at CSX. The stock price of CSX is up about 20% this morning in response to the news.

Great! Maybe now the 261 crew can run their steam train on CP rails again!

I'd like to see the 2816 brought back.

 Thank Goodness, he is GONE.

  From what I hear, the new guy has had huge picture of # 2816 on his office wall, for a few years now and loves steam(if its the same guy)

 Other rumours are the Canadian Government recently approached CP about having # 2816 running for Canada's 150 year celebrations, but Hunter said "NO". Perhaps, this will change.

 What a relief

Al

H.H. is gone but still loose !!!

Funny how this guy affects the stock of the company he's at/wants to go to.  CP is up over 5 bucks for leaving and CSX is up 7.50 on rumors he wants in.  Thats just today.

I have another take.  CSX might merge in the future.  But it will be CSX taking over CP.  Considering the new resident oh the White House, a merger controlled from the US side would make some sense.

I think, by law, the Canadian RRs have to be over 50% Canadian owned.  That is one thing that irritates me, these others can come in and buy what they want. Other countries have similar laws. Not the US.

Dominic Mazoch posted:

I have another take.  CSX might merge in the future.  But it will be CSX taking over CP.  Considering the new resident oh the White House, a merger controlled from the US side would make some sense.

Dominic, I agree.  There is game afoot.  CP wants access to US railroads in the worst of ways.  It wouldn't surprise me if HH got control of CSX (his current target) and then turned around and do the merger with CP.  As one person, said above, the press release was carefully worded to either make it look like to the regulating authorities that nothing is going on or it's posturing.  At 72, you'd think HH would hang it up.  But he's P.O.'d for being turned down for his attempts.  Jilted lovers can be quite persistent. 

superwarp1 posted:

Well the stock price will go up.  CSX is the lowest valued class 1 publicly held railroad stock out there.

up over 20% recently

Hit 45.00 a share yesterday Wall Street must like whats happening !

Wall street might like it, but is it good for the company and its customers and employees?

Let 2816 roll!!

PS: As goodwill, bring her back east for a visit too! 

From my perspective after 38 years as a rail shipper; having Hunter move to CSX may actually be a good thing. 

I've experienced his tenure with CN and most recently at CP and whatever else you want to say about him or his methods; he does instill a customer focus across the railroad.  This is something that CSX is completely lacking in the past few years.

Now; Hunter does have a tendency to hang price tags on services that had previously been gratis but, I've long suspected his goal isn't so much revenue enhancement as it is customer and employee behavioral modification. 

And I'll add I did oppose CP's attempted merger with NS last year because I believed NS already had a pretty good customer focus along with all the necessary tools in place to improve their service.  And Jim Squires and his team have done exactly that.

Curt

Wear with pride

jim pastorius posted:

I think, by law, the Canadian RRs have to be over 50% Canadian owned.  That is one thing that irritates me, these others can come in and buy what they want. Other countries have similar laws. Not the US.

Not yet.  I hpoe it comes.

RideTheRails posted:

Dominic Mazoch posted:

I have another take.  CSX might merge in the future.  But it will be CSX taking over CP.  Considering the new resident oh the White House, a merger controlled from the US side would make some sense.

Dominic, I agree.  There is game afoot.  CP wants access to US railroads in the worst of ways.  It wouldn't surprise me if HH got control of CSX (his current target) and then turned around and do the merger with CP.  As one person, said above, the press release was carefully worded to either make it look like to the regulating authorities that nothing is going on or it's posturing.  At 72, you'd think HH would hang it up.  But he's P.O.'d for being turned down for his attempts.  Jilted lovers can be quite persistent. 

The road I thought HH would go after is KCS.  But that merger would work with three countries!  Maybe KCS being cross Rio Grande is a poison pill!

He would fit right in at CSX since they now hate steam anyway. If he became CEO of NS you could kiss the 611 excursions goodbye.

For what it's worth, the "non-compete agreement" has been released, and he is now reportedly only limited from going to work for CN, BNSF and UP. 

CP reveals more terms of Hunter Harrison's forfeited $118M package:

http://www.cbc.ca/news/canada/...nt-package-1.3950201

The CP Board should have fired him a long time ago!

Regards,

Swafford

The past two years have been rough for CP stock.

CSX in talks to reach deal with activist, outgoing CP CEO: report

http://www.theglobeandmail.com...ort/article33822407/

Yes, it appears HH & Company are going to have their way with CSX.