CSX Names Harrison CEO, Warns He'll Exit Without $84 Million
- Railroad bows to pressure from activist investor Paul Hilal
- Analyst sees new chief driving efficiency at industry laggard
Why Hunter Harrison May Be Worth $200 Million to CSX
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CSX Corp. appointed Hunter Harrison as chief executive officer effective immediately, entrusting the industry veteran with the task of turning around North America’s least efficient railroad. He’ll stick around as long as shareholders are willing to meet his pay demands.
Harrison will resign after the 2017 annual meeting unless shareholders accept his request for $84 million to cover forfeited pay from his old job plus the assumption of a related tax indemnity, CSX said in a statement. He’ll join the board along with ally Paul Hilal, the founder of activist fund Mantle Ridge, and three others with their backing.