CSX Corp. has officially agreed to pay $84 million as part of the process to bring Hunter Harrison on board as the CEO, executing an agreement on June 16 that shareholders approved earlier in the month.
CSX will pay $55 million to hedge fund Mantle Ridge to reimburse money previous paid to Harrison. Paul Hilal, who runs Mantle Ridge, lured Hunter Harrison away from Canadian Pacific Railway in January and negotiated for him to take over CSX. The Jacksonville, Fla., railroad also will pay out a $29 million lump sum to Harrison that he forfeited when leaving Canadian Pacific.
In the letter, the board acknowledged that it understood “the risks associated with Mr. Harrison’s age and physical health.”
Harrison, 72, has experienced medical issues, including a respiratory condition that requires him to use supplemental oxygen.
But the board issued a statement that it already has benefited from “the operating improvements undertaken by the company since Mr. Harrison’s appointment as chief executive officer and the implementation of his business strategies, including Precision Scheduled Railroading.”