13°c Light rain showers
18°c Cloudy with sunny breaks
Winnipeg Free Press - PRINT EDITION
Pension fund gives backing to shakeup at CPR
ACTIVIST investor William Ackman has found a new ally in the Ontario Teachers Pension Plan to elect his nominees to the board of directors of Canadian Pacific Railway (TSX:CP) and replace the railway's current CEO.
Teachers said Monday it's backing the seven board nominees of Ackman's Pershing Square Capital Management and the move to replace CP chief executive Fred Green with Hunter Harrison, former head of rival Canadian National Railway (TSX:CNR).
Ackman said support from one of Canada's largest pension-fund managers sends a strong signal for change.
"A loud and clear message from shareholders will enable the reconstituted board to put the past behind it, have a fresh start, and work most efficiently and effectively toward our shared goal."
Canadian Pacific urged the pension fund to reconsider its decision and support the railway's board nominees.
Teachers said CP isn't meeting expectations.
"We note CP's performance has been below its peers during Mr. Green's tenure as CEO and are not convinced that the most recent results provide irrefutable evidence that CP is performing better than its peers," said Teachers, which became a shareholder Dec. 31.
Ackman issued another letter to Canadian Pacific shareholders on Monday calling for the election of his nominees to the railway's board at its annual meeting on May 17.
Ackman, whose fund is the railway's largest shareholder with 14.2 per cent of its stock, has been manoeuvring to get Harrison as the CEO of CP Rail.
The crux of CP's plan, as well as Pershing's criticism, revolves around how the railway will improve its operating ratio -- the percentage of revenue required to pay for operations -- to boost profitability.
CP's target is to bring the ratio down from 80.1 per cent to 70 to 72 per cent for 2014, but Pershing says it can do better and achieve 65 per cent by 2015.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition May 8, 2012 B4
More Business
- Back to Top
- Return to Business
More Business
(1 of 19 articles for today)
Bernanke says computer revolution likely to provide various future gains to economic growth
2:56 PM 0
Poll
Most Popular Business
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Ex-'Pegger seeks to grow local businesses
- Bridging the gap
- Gen X, young boomers up against retirement wall
- Buyer beware in online auto sales: experts
- Weekend of spending expected
- Toronto, Wall Street surge higher amid positive U.S. data, consumer sentiment
- The ready-made solution evolution
- In blurring of online courses, traditional, Georgia Tech to offer full open online master's
- Manitoba, P.E.I. tied for highest inflation in April
- Transcona transformation
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Holiday pump jump debated
- Driving downtown development
- Winnipeg's got the REIT stuff
- McDonald's adding 3 new Quarter Pounders as it phases out third-pound Angus burgers
- Flight attendants union calls $50 million Air Canada cuts premature
- 3 Ford owners sue in federal court, saying EcoBoost engine is defective
- CEO, execs terminated at TCIG
- Emergency manager reveals Detroit is nearly broke; city may have no choice except bankruptcy
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Raising the rent is a good sign
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- Holiday pump jump debated
- Border-fee idea doesn't fly
- Bridging the gap
- Ex-'Pegger seeks to grow local businesses
- Late deal in workplace sex-harassment case
- Few crossovers score well in front crashes: report
- Tougher food-safety rules in the works: Agriculture Minister Gerry Ritz
- Give yourself permission to relax
- Buyer beware in online auto sales: experts
- Transcona transformation
- Winnipeg's got the REIT stuff
- CEO, execs terminated at TCIG
- Diversification spurs Exchange Income's growth
- Driving downtown development
- Late deal in workplace sex-harassment case
- There are lots of I's in 'team'
- City to get a touch of glass
- Bridging the gap
- Flight attendants union calls $50 million Air Canada cuts premature
- Transcona transformation
- MacDon on the block?
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Carney says touching Canadian deposits "hard to fathom" in a new bail-in scheme
- Winnipeg Boeing plant set to expand
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.