CSX Officially Agrees to Pay $84 Million to Keep Hunter Harrison
CSX Corp. has officially agreed to pay $84 million as part of the process to bring听Hunter Harrison on board as the CEO, executing an agreement on June 16 that shareholders approved earlier in the month.
CSX will pay $55 million to hedge fund Mantle Ridge to reimburse money previous paid to Harrison. Paul Hilal, who runs Mantle Ridge, lured Hunter Harrison away from Canadian Pacific Railway in January and negotiated for him to take over CSX. The Jacksonville, Fla., railroad also will pay out a $29 million lump sum to Harrison that he forfeited when leaving Canadian Pacific.
RELATED: CSX downplays concerns over Harrison鈥檚 health
In the letter, the board acknowledged that it understood 鈥渢he risks associated with Mr. Harrison鈥檚 age and physical health.鈥
Harrison, 72, has experienced medical issues, including a respiratory condition that requires him to use supplemental oxygen.
But the board听issued a statement听that it already has benefited from 鈥渢he operating improvements undertaken by the company since Mr. Harrison鈥檚 appointment as chief executive officer and the implementation of his business strategies, including Precision Scheduled Railroading.鈥
