IS ANOTHER TRANSCONTINENTAL RAILROAD IN THE WORKS? CSX railroad replaces CEO after investor pressure and poor performance as Union Pacific merger looms.
CSX railroad announced Monday that it had replaced its CEO less than two months after an investment fund urged it to either find another railroad to merge with to better compete with the proposed transcontinental Union Pacific railroad or fire outgoing CEO Joe Hinrichs.
The outgoing CEO, who came to the railroad in 2022 after a long career with Ford, focused on repairing CSX’s relationship with its workers and labor unions and unifying the team after a bitter contract fight. But Ancora Holdings, which helped spur major changes at Norfolk Southern, said CSX’s operating performance deteriorated significantly under Hinrichs’ leadership. Hinrichs resigned to clear the way for Steve Angel to become CEO effective Sunday.
Angel, 70, also comes from outside the rail industry although earlier in his career he oversaw GE’s locomotive building unit, so he does have that experience. CSX said he has 45 years experience leading large public companies, including most recently as CEO of Linde and Praxair that provide industrial gasses to other companies.
“We are excited to welcome Steve as our new CEO. He is a visionary in creating long-term value and an expert in guiding companies through significant transformation,” the railroad’s board Chairman John Zillmer said.
CSX has been under pressure from Ancora and other investors since Union Pacific announced its $85 billion deal to acquire Norfolk Southern, which is CSX’s rival in the eastern United States. But both [Burlington Northern Santa Fe] and [Canadian Pacific Kansas City] railroads said they aren’t interested in a merger right now.
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Ancora said it continues to buy more CSX shares and hopes to develop a better relationship with the railroad. Ancora holds three seats on Norfolk Southern’s board after running a proxy campaign there to oust the previous CEO at that railroad, so the investment fund had input on the Union Pacific-Norfolk Southern merger.
Earlier: Union Pacific, Norfolk Southern discuss merger to create transcontinental railroad, AP source says.