Canadian Pacific Reaffirms CEO Support After Backing Questioned
Canadian Pacific Railway Ltd. (CP) reaffirmed its support for Chief Executive Officer Fred Green following a news report the board would be open to a management shakeup proposed by its biggest investor, William Ackman.
Green “has the unanimous support of the board,” the company said in an e-mailed statement today. The Financial Post said yesterday the board “could consider a management shakeup” before a May shareholder meeting if Ackman’s plan to improve performance by replacing the CEO gains a foothold with shareholders.
The Financial Post story cited Tony Ingram, a director, saying the board “will look at any request and consider it, I’m sure.”
Canadian Pacific has said Green is the best person to run the company while Ackman, founder of Pershing Square Capital Management LP, pushes for Hunter Harrison to take his place. Ackman plans a proxy battle at the May meeting and seeks to elect a slate of six directors to the board in order to hire Harrison, the former head of larger rival Canadian National Railway Co.
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