Hunter Harrison has moved quickly at CSX since he became the CEO of the Jacksonville, Florida railroad in March. In just three months, trains were running faster, with improved on-time rates. In a July call with analysts, the company reported efficiency gains of $90 million for the second quarter and earnings of $510 million, an increase of $65 million over last year.
His move was encouraged by a CSX activist investor.
Harrison—who resigned from Canadian Pacific Railway in January to pursue the CSX job—is well known in the industry for increasing efficiency and strengthening the bottom line at a number of railroads over the years. With that history, investors had high expectations for the new CEO: The company’s stock rose significantly, and at the company’s annual meeting in June, investors agreed to an $84 million reimbursement payment to cover compensation Harrison forfeited when leaving Canadian Pacific.
Nevertheless, the company’s stock dropped 5% following the July earnings call. In part, that may have been a matter of Harrison running into the challenges that come with a strong reputation and high investor expectations. On the call, he said that his tenure would be relatively brief: “I’m a short-timer” and an “interim person” at CSX, he said—hardly words of comfort to investors who warmly welcomed his arrival a few months ago.
“The CSX story points out the upsides and risks associated with hiring an external industry expert as CEO,” says Jeff Kirschner, a partner with RHR International. “By investing in a short-term fix instead of planning long-term for CEO succession by developing internal candidates, the company has achieved incremental improvement.” It still, however, “must address investors’ questions about the future.”
Hunter Harrison is No. 264 on Chief Executive and RHR International’s CEO1000 Tracker, a database of the CEOs of the top 1,000 public/private companies.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
