Eastern Railroad Discussion > CSX: Report that EHH is "disappointed"

The Wall Street Journal reported yesterday that E Hunter Harrison is disappointed that "chest pounding" between Mantle Ridge and CSX has disrupted the process of making him CEO.

In this version, apparently from sources close to EHH, CSX had offered him the CEO job. But, the demand for seats on the board, and some aspects of compensation have created an impediment.  That first aspect, the CEO job, closely tracks the CSX report they were at the end of the selection process. The second aspect, that six seats on the board be given to a 4% owner, has infuriated other large share owners.

MY SPECULATION- Mantle Ridge has likely promised a make whole agreement with EHH, that he would be reimbursed by somebody for the bundle of cash and benefits he left behind at CP. If CSX doesn't do it, Mantle Ridge would likely be on the hook.  EHH expects to be paid, and 'an expected advisory vote from CSX share owners might recommend against a $300 million dollar package for him.

As I mentioned last week, this is an excellent example of divide and conquer.  Drive a wedge between EHH and Mantle Ridge, and let them squabble.

< E Hunter Harrison is disappointed that "chest pounding" between Mantle Ridge and CSX has disrupted the process of making him CEO.>

Children, CHILDREN !!
 

EHH, "I walked away from a hundred million just so you could pay me more! And not in Canadian dollars!" Maybe?

Out

My heart bleeds for him.

pennsy3750 Wrote:
-------------------------------------------------------
> My heart bleeds for him.
​NOT.  I pray he does not become CEO of CSX.

Maybe he forgot to go 1 more border South and was thinking 300,000,000.00 Peso's

Ed Stewart
Jacksonville, FL

Maybe a "TIME OUT" is in order here and every one meet up, NS, BNSF, UP, CSX & KSC and go to the RBBB Circus currently showing in Atlanta.
Hummm Interesting?
NSSpike

ClubCar Wrote:
-------------------------------------------------------
> pennsy3750 Wrote:tha
> --------------------------------------------------
> -----
> > My heart bleeds for him.
> ​NOT.  I pray he does not become CEO of CSX.

I dont either.  Come on ClubCar-EHH is the most TOXIC @$$hole out in the railroad world.  He will literally take CSX and thetre will be NOTHING left, not even the dignity CSX has.  He gets in at CSX-kiss it and everything aboutn CSX goodbye, as his operating plans might be good very short term, but in the long run, never have worked out. You want proof-look at CN and now recently CP.  The proof is all there. 

Michael Fair
Royal Oak, MI

NSSpike Wrote:
-------------------------------------------------------
> Maybe a "TIME OUT" is in order here and every one
> meet up, NS, BNSF, UP, CSX & KSC and go to the
> RBBB Circus currently showing in Atlanta.
> Hummm Interesting?
> NSSpike

UP is already here, BNSF is supposedly on their way....

So, they have a Potsdam conference in Atlanta to divvy up CSX?  NS, UP, BNSF, FEC, KCS, G&W all put in their requests with bids...

Lazard or Brown Brothers (huge symbolism in that)  handles the requests and builds the map

(Just kidding, sort of.  Although I've been to enough industry conferences where mergers follow a few weeks / months later)

those "industry conferrences" are the concerning thing, (remember the "weekend meeting" in --help me remember--Virginia?? tthat ended becoming the Conrail takeover???
EHH's saber rattling is just that of a wealthy egotistical man who didn't get his way in the first round of a negotiation before what will most likely be a proxy fight next month.  EHH wants to be "the one" to gain fame as the CEO that toppled the first domino to the last round of mergers...I'm willing to bet he's pissed off enough high ups at the BNSF, NS and UP that they would meet in secret like this just to make their own transcontinental plans, and leave EHH without a dance partner at all...

 

Maybe EHH will threaten to sue again or complain that the other railroads are breaking anti-trust laws?

Victor A. Baird
​http://www.erstwhilepublications.com

I'm sorry this is about off topic,but it is short. Every time I look at a picture of EHH, I see the Joker played by Jack Nicholas. He looks like a crook, acts like a crook, something tells me he really is a crook!!

Posted from Android

Regardless of his past experience and knowledge, can we say GREEDY BASTARD!!

If CSX gives in to this, they deserve to fold up and go away!!

Mike

The entire idea of six board seats for 4% ownership is absolutely unrealistic. Vanguard Group, Capital Research Global Investors, and State Street Corp. control 7%, 6%, and 4% respectively for a total of 17%. They would have to be totally remiss to allow a 4% stake holder to control 50% of the board. EHH will have to get over it. In fact, he will have plenty of time after he checks himself into Memory Care.
ALLEN

i have not followed this topic closely so i have a question:  are any of the railroads previously run by ehh in worse financial condition than before he took over?

66

krm152 Wrote:
-------------------------------------------------------
> The entire idea of six board seats for 4%
> ownership is absolutely unrealistic. Vanguard
> Group, Capital Research Global Investors, and
> State Street Corp. control 7%, 6%, and 4%
> respectively for a total of 17%. They would have
> to be totally remiss to allow a 4% stake holder to
> control 50% of the board. EHH will have to get
> over it. In fact, he will have plenty of time
> after he checks himself into Memory Care.
> ALLEN

That's what caused this part of the matter to become public.  The Wall Street Journal reported last week that State Street was "infuriated" that CSX was even considering the request for six seats.  State Street conveyed its displeasure to the board, and that became public.

As I mentioned last week, CSX  has a wedge between EHH and Mantle Ridge over the $300mn / $90mn etc obligation. If CSX share owners  direct managerment to ignore Mantle Ridge by a wide majority, that signals a proxy fight would have to include a very generous offer.  If EHH then sues Mantle Ridge for their satisfaction of his obligation, the whole mess becomes a donnybrook.

Lots of moving parts, lots of fun.