[240117.EN.BIZ] Hunter Harrison Leaves CP Rail Early For 'Opportunities' With Other Railways

CANADIAN Pacific Railway CEO Hunter Harrison, and former CEO of its rival Canadian National Railways, is retiring at the end of month and will be replaced by chief operations officer Keith Creel.

"Hunter has made enormous contributions to CP, and we are forever grateful for his years of service," said Andrew Reardon, chairman of the board. "We have a tremendous CEO-in-waiting in Keith Creel. Keith and his team are ready to formally take the reins."

"Leaving CP is bittersweet," said Mr Harrison. "I have had a wonderful experience and depart with many friends and with full confidence in Keith's ability to build on the great success we have enjoyed."

Mr Harrison was scheduled to retire at the end of June. However, he approached the board to discuss his early retirement from CP and potential related modifications to his employment arrangements that would allow him to pursue opportunities involving other Class 1 Railroads.

Following negotiations, CP Rail said Mr Harrison agreed to forfeit $118 million in benefits and awards by leaving five months earlier than scheduled.

Much was riding on CP's hostile bid to take over the US Norfolk Southern Railway, the success of which Mr Harrison pinned hopes for future development of the railway. The Norfolk Southern board rejected the deal and regulatory approval seemed doubtful.

As CEO, Mr Harrison's CP profits nearly tripled from the end of 2012 to the end of 2015.

Source : HKSG.