CP exercises option to add one year to Harrison's CEO contract (5/7/2014)


Canadian Pacific's board today announced that Chief Executive Officer E. Hunter Harrison has agreed to a contract extension for an additional year. He will remain in the Class I's top post until 2017.

Harrison joined CP in June 2012. He previously was president and CEO of CN from January 2003 to December 2009, and CN’s chief operating officer from 1998 until 2003. Prior to that, he was president and CEO of Illinois Central Railroad from 1993 to 1998, and the railroad’s COO from 1989 to 1993.

Harrison is honored the board asked him to remain in a leadership role for an extra year, he said in a press release.

"Even though CP has experienced phenomenal success in a short period of time, there remains a lot to accomplish over the next three years to grow this company even further with our customers and shareholders," said Harrison.

When he was appointed to lead CP's transformational charge, the agreement called for Harrison to serve as top executive for four years, with an option for an additional year.

"In seeing CP's rapid turnaround under Hunter's leadership, the board was unanimous in wanting him to stay on until 2017, and we are extremely pleased he has accepted," said CP Chairman Gary Colter. "Hunter is arguably the most respected and successful leader in the rail industry and Canadian Pacific's evolution is stronger than ever with an outstanding senior leadership team and a railway operating model that will take CP to levels it has not achieved in its 133-year history."

Independent investment research firm Morningstar Inc. earlier this year named Harrison its "CEO of the Year" for 2013. The firm annually recognizes a chief executive who exhibits "exemplary corporate stewardship, demonstrates independent thinking, creates lasting value for shareholders, and has put his or her stamp on an industry," according to Morningstar.

Harrison also was the recipient of Progressive Railroading's Railroad Innovator Award in 2009.

Source: Progressive Railroading Daily News