Ackman CEO Pick Faces Years-Long Canadian Pacific Challenge
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William Ackman had to wait only six weeks after winning a proxy fight at Canadian Pacific Railway Ltd. for his choice as chief executive officer to get the job. Achieving his profitability targets for the least efficient of North America’s major railroads may take several years.
Ackman and the board elected in May are betting that the CEO named today, 67-year-old Hunter Harrison, can pull off a turnaround similar to the one he oversaw at Canadian National Railway Co. Harrison has said he can cut operating expenses to 65 percent in 2015 compared with 80.1 percent of sales in the three months through March.