Canadian Railroads > CP Conference Call: Hunter off sick, Chairman and Director resign

Keith Creel hosted CP's 2015Q2 Financial Analyst Conference Call on July 21st.

Conspicuous by his absence was CEO Hunter Harrison.
Creel reported, "He recently had to undergo some minor maintenance procedures to his lower extremities.  
His recovery process has obviously been slower than I know that he hoped for.....  
He didn't exactly follow the doctor's orders with his recovery time.  
He jumped right back into his seat less than a week after his procedure.....  
Finally his doctor put his foot down and said, No work, no travel....."

Creel also reported that CP Board Chairman Gary Colter and CP Board Director Krystyna Hoeg had resigned due to "disagreements related to Corporate Governance matters"
No other information was given.  Gary Colter was one of Bill Ackman's slate of directors elected to CP's board in 2012.  
Krystyna Hoeg had been a member of the Board since 2007.  
She was the Chair of the Governance Committee and a member of the Compensation Committee.
 

Maybe the new one that the surgeons punched did not take, he was a big enough one to begin with.

Doug, that is hilarious (and true)...thanks for the good laugh.

Steve Zahn
Glenview, IL

 

So is "Corporate Governance Matters" the new slang for "Disagreed with his majesty the royal Hunter Harrison?"

DrLoco Wrote:
-------------------------------------------------------
> So is "Corporate Governance Matters" the new slang
> for "Disagreed with his majesty the royal Hunter
> Harrison?"

The company is expected to file an 8-K information statement describing these differences. In other matters on Monday, the (Canadian) firm said it would file additional paperwork required under US laws,

http://www.theglobeandmail.com/report-on-business/head-of-cp-rail-shifts-focus-from-work-to-health/article25634671/

"CP is in the final stages of hiring a senior executive from a competitor to bolster the company’s senior ranks."

I bet everyone is looking around their executive morning meeting table a little different this week after this comment.

Any good rumors on who maybe??

hope that he is given disability and sent into retirement

We can only hope that HH recovers...Gen Patton is said to have put it thusly: "All good things, like war, must eventually end."

Not to spoil the party, but CP's Form 6-K filing with the U.S. Securities and Exchange Commission explains both Mr. Harrison's health issues and the resignation of the two directors.  There's really not much to satisfy those who don't like Mr. Harrison in either of them:

"Release: July 21, 2015

Canadian Pacific clarifies changes to Board of Directors

Calgary, AB – Canadian Pacific Railway Ltd. (TSX: CP) (NYSE: CP) issued the following statement in response to questions from investors and to address inaccurate speculation concerning the recent board resignations and the health of CEO E. Hunter Harrison:

On July 3, 2015, CP director Stephen Tobias notified CP Board Chairman Gary Colter that he was prepared to resign from the board at a date of the board’s choosing.

In consultation with Krystyna Hoeg, the Chair of the Nominating and Governance Committee, Mr. Colter caused the company to issue a press release stating that Mr. Tobias had resigned from the board as of June 29, 2015. The company has subsequently corrected this error.

Mr. Colter caused this press release to be issued without consulting with the board and without seeking board action to accept Mr. Tobias’ offer to resign.

Because Mr. Tobias was a continuing director of the company through June 30, a majority of CP’s directors were U.S. citizens, and thus CP is no longer eligible for the SEC’s Foreign Private Issuer Exemption and will become a U.S. Issuer beginning in 2016.

The CP board is committed to the highest standards of corporate governance, and strives to be exemplary in this respect. Consistent with this philosophy, Mr. Colter and Ms. Hoeg offered to resign in light of how this issue was handled. The board unanimously accepted their resignations.

Concerning Mr. Harrison’s health, Mr. Harrison recently had stents implanted in order to improve circulation and reduce cramping in his legs. In addition, Mr. Harrison is recovering from a mild bout of pneumonia which has restricted his travel. His full recovery is expected in the coming weeks. He remains actively engaged in the company’s business, but elected not to travel to Calgary to participate in this morning’s earnings call."

It will be revealing to see if CP seeks to reinstate its Canadian status. Unless there's a fix in with the Harper government to allow the company to exit Canada on the sly,  CP would be much more likely to be shielded in Canada.

Assuming it wishes to be shielded...