Eastern Railroad Discussion > Mantle Ridge launches proxy letter, website to get Hunter's pay

CSX has announced that the Annual Meeting will be on June 5, 2017, in Richmond, Virginia.

CSX has sent a proxy letter to shareholders.
Resolution 5 is a non-binding/advisory resolution to pay Mantle Ridge and Hunter Harrison $ 84 million.
The CSX Board does not recommend for or against, but does give a list of pros and cons --

"In determining whether to vote for this resolution, the Board believes shareholders should consider the following pros and cons:

Pros:
Mr. Harrison’s prior accomplishments and past experiences generating value at Illinois Central Railroad, Canadian National Railway and Canadian Pacific;
Mr. Harrison’s experience with implementing “Precision Scheduled Railroading”; and
Mr. Harrison forfeited substantial compensation and benefits he earned at Canadian Pacific in order to relax non-compete restrictions that would have prevented him from working at the Company, and if the Company does not provide the Reimbursement he has made clear that he will resign from CSX in order to maintain the Mantle Ridge protection against the cost of the forfeiture.

Cons:
The magnitude of the costs associated with the Reimbursement and Mr. Harrison’s compensation at the Company as described elsewhere under “Mantle Ridge and E. Hunter Harrison Agreements”;
The risk that Mr. Harrison may not be able to continue to serve as CEO over the course of his four-year employment agreement, whether due to death, disability or other reasons; and
The risk that Mr. Harrison may not be able to achieve results similar to the results he was able to achieve at Illinois Central, Canadian National and Canadian Pacific."


Mantle Ridge has sent a proxy letter to shareholders as well.

Mantle Ridge has also launched a website; www.csxadvisoryvote2017.com There is a Q&A section including,

"Q: HOW WILL CSX’S STOCK REACT IF MR. HARRISON RESIGNS?
A: Mr. Harrison’s joining the Company is widely understood as the driver of the dramatic recent share price performance. Without him there, expectations of the Company’s future performance will change meaningfully, and that will likely be reflected in the share price. “Nixing the $84 million would send Harrison packing and the share price tumbling.” – (“CSX CEO Hunter Harrison’s Pay is No Great Train Robbery”, FORTUNE, By Shawn Tully, March 24, 2017)"


CSX proxy letter
https://www.sec.gov/Archives/edgar/data/277948/000120677417001259/csx3110061-def14a.htm
Mantle Ridge proxy letter
https://www.sec.gov/Archives/edgar/data/277948/000119312517130796/d366976ddefn14a.htm
Mantle Ridge website
https://csxadvisoryvote2017.com



Edited 2 time(s). Last edit at 04/22/17 02:15 by Marcus.

Writer Shawn Tully is highly regarded as a straight shooter.

Posted from Android

“Nixing the $84 million would send Harrison packing and the share price tumbling.” – (“CSX CEO Hunter Harrison’s Pay is No Great Train Robbery”)....


But the railroad would be intact!!!!! If I had stock in CSX I would rather make a bit less on my return and not see the railroad destroyed....

CSX shareholders (I am not one) are stupid if they vote for the resolution. EHH will not resign if the resolution fails because he will get nothing. His threat to resign is nothing more than that, an empty threat.
ALLEN

If he resolution fails, and I doubt it will, EHH won't resign.

The board will offer him a plan b, and he will get his pay.

Posted from Android

CSX stock would take a hit of Harrison doesn'tcome on board but it will bounve back ... the market will dictate where the stock goes ... only reason stock is going up.is because Harrison saying he wants a CR type X mainline system from New Orleans to New England and Florida to Chicago ... shed the company of everything else ...