CPR board backs CEO in shareholder’s sights
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Hey there, time traveller!
This article was published 10/01/2012 (5106 days ago), so information in it may no longer be current.
CALGARY — Canadian Pacific Railway Ltd. is sticking by its chief executive, who has been targeted for removal by a U.S. financier who controls nearly 15 per cent of CPR’s stock and is reportedly gearing up for a proxy fight to replace the railway’s board of directors.
A letter issued Monday by CPR (TSX:CP) chairman John Cleghorn says the board unanimously believes it’s “not in the best interests” of CPR or its shareholders to replace current CEO Fred Green with the former CEO of Canadian National Railway.
U.S. investment fund manager William Ackman has been pushing to replace Green with Hunter Harrison, 67, who helped CN (TSX:CNR) become widely regarded as North America’s best-run railway company. In media reports Monday, Ackman was quoted as saying he was prepared to launch a proxy battle to make Harrison CEO.
Cleghorn’s letter says Ackman’s proposal would jeopardize a multi-year plan for improving CPR’s operating performance — a plan Cleghorn says is beginning to show positive results.
“The board is working closely with management and monitoring the company’s performance and will continue to hold CP’s president and chief executive officer, Fred Green, and CP’s senior management, fully accountable for delivering on the multi-year plan,” Cleghorn’s letter says. “This plan has been specifically designed to generate the best possible operational and financial results from CP’s unique assets and circumstances.”
— The Canadian Press