Eastern Railroad Discussion > A bit of a conflict of interest by Mantle Ridge????

I went to Google to look for the link to the CSX Bullsheet, and ran across this website. https://csxadvisoryvote2017.com/

Mantle Ridge has set up this site pleading shareholders to vote to let Mantle Ridge off the hook for EHH's monies due from his early exit at CP.

"Thank you for visiting the CSX Advisory Vote 2017 website – a site established by Mantle Ridge LP to provide fellow CSX shareholders with important information regarding the upcoming CSX Advisory Vote at CSX’s June 5th, 2017 Annual Meeting of Shareholders. This Advisory Vote relates to reimbursement arrangements for expenses incurred by Mr. Harrison.

On March 6, 2017, CSX Corporation named E. Hunter Harrison, a proven railroad executive with what we believe is an unrivaled record of producing market-leading operating and financial results, as Chief Executive Officer. At the upcoming Annual Meeting, the CSX Board is seeking shareholder input concerning Mr. Harrison’s request that CSX reimburse costs incurred in connection with narrowing his non-compete sufficiently to allow him to accept the position of CEO (Item 5 in the proxy statement). The total costs covered by the reimbursement resolution are less than $0.12 per share.

Mr. Harrison joined CSX with the expectation that CSX would reimburse these costs. If CSX does not do so, Mr. Harrison has made clear that he will resign from CSX after the 2017 Annual Meeting – an outcome Mantle Ridge believes will be detrimental to the near and long-term value of CSX.

Your vote is crucial to ensure Mr. Harrison remains CEO of CSX. Mantle Ridge recommends shareholders vote for the reimbursement resolution and for the other items on the agenda on the gold proxy card today. You can find helpful information about the advisory vote concerning the reimbursement arrangements on this site as well as important instructions on how to vote your shares on the How to Vote page. We greatly appreciate your support.

This website will be expanded over the weeks ahead. Please check back periodically or register for email updates."

Why am I not surprised.... I just wish Mantle Ridge would excuse themselves from the vote on this as they have a significant stake in this cote.

Russ



Edited 1 time(s). Last edit at 05/16/17 15:47 by NSTopHat.

Sounds like a mob extortion game they're trying to pull!

Posted from Android

Mantle Ridge has been identified as being "on the hook" for Harrison's CP benefits several times, and it does appear in their proxy. No question they have a big stake in getting CSX on the hook and them off it.

SPECULATING: In the event that CSX shareholders defeat the advisory vote on EHH's compensation, and he resigns, he will undoubtedly sue Mantle Ridge for the balance of his CP deal. A lot will depend on what Mantle Ridge told him. Depending on exactly how much Mantle Ridge paid for its CSX stake, they're probably way ahead, even if they have to pay him $50 million.

I hope he leaves.. screw him

bluesboyst Wrote:
-------------------------------------------------------
> I hope he leaves.. screw him


Let's say he does leave. What, then?

The CSX board has shown itself as incompetent and craven over several years. Unable to force meaningful change on CSX.

Mike Ward, while not the best manager in the world, was making progress in modernizing CSX. That's one reason why usually placid and accommodating outside investment firms like Vanguard and State Street jumped so quickly. That's highly unusual, almost unprecedented so early in the game.

Lackawanna484 Wrote:
-------------------------------------------------------
> Mantle Ridge has been identified as being "on the
> hook" for Harrison's CP benefits several times,
> and it does appear in their proxy. No question
> they have a big stake in getting CSX on the hook
> and them off it.
>
> SPECULATING: In the event that CSX shareholders
> defeat the advisory vote on EHH's compensation,
> and he resigns, he will undoubtedly sue Mantle
> Ridge for the balance of his CP deal. A lot will
> depend on what Mantle Ridge told him. Depending
> on exactly how much Mantle Ridge paid for its CSX
> stake, they're probably way ahead, even if they
> have to pay him $50 million.

i am curious. was csx profitable before ehh came on board?

66

goneon66 Wrote:
-------------------------------------------------------
> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
> > Mantle Ridge has been identified as being "on
> the
> > hook" for Harrison's CP benefits several times,
> > and it does appear in their proxy. No question
> > they have a big stake in getting CSX on the
> hook
> > and them off it.
> >
> > SPECULATING: In the event that CSX shareholders
> > defeat the advisory vote on EHH's compensation,
> > and he resigns, he will undoubtedly sue Mantle
> > Ridge for the balance of his CP deal. A lot
> will
> > depend on what Mantle Ridge told him.
> Depending
> > on exactly how much Mantle Ridge paid for its
> CSX
> > stake, they're probably way ahead, even if they
> > have to pay him $50 million.
>
> i am curious. was csx profitable before ehh came
> on board?
>
> 66

Yes.

Over the most recent 5 year period, CSX share total return far outpaced NS. Even stripping out the EHH "bump" CSX outpaced NS.

Union Pacific did 50% better than CSX over the 5 years ended 11/30/2016, and much better than NS. KCS did worse than all three. Which is why some analysts figured they would be the target.

Lackawanna484 Wrote:
-------------------------------------------------------
> bluesboyst Wrote:
> --------------------------------------------------
> -----
> > I hope he leaves.. screw him
>
>
> Let's say he does leave. What, then?
>
> The CSX board has shown itself as incompetent and
> craven over several years. Unable to force
> meaningful change on CSX.
>
> Mike Ward, while not the best manager in the
> world, was making progress in modernizing CSX.
> That's one reason why usually placid and
> accommodating outside investment firms like
> Vanguard and State Street jumped so quickly.
> That's highly unusual, almost unprecedented so
> early in the game.

The several hundred people so far might get their jobs back ... he's running a railroad for one reason ... jump the price of the stock short term so he can collect ... MO MONEY ... he doesn't want to run an effecient railroad ... he wants to run a stripped down bare bones railroad for profit ... efficiency is last on the list ... a good amount of CSX is going to like what CR abandoned ...