CSX Sets Annual Meeting for June 5

Under normal circumstances, the CSX annual meeting, which has been set for June 5 in Richmond, Virginia, would mean little except to the company’s shareholders and those who take a keen interest in the activities of the railroad.

But among the issues to be decided at the meeting is whether CSX should reimburse hedge fund Mantle Ridge the $55 million that it paid CSX CEO E. Hunter Harrison to retire early from Canadian Pacific. In doing that, Harrison forfeited various bonuses from CP.

If the shareholders vote against paying Mantle Ridge, Harrison has said he will step down as CSX CEO.

Harrison is also demanding $29 million from CSX and wants it to pay for a tax bill that he has incurred.

Many observers expect CSX shareholders to approve the compensation demands because CSX stock has risen 30 percent in value since word got out that Mantle Ridge was seeking to install Harrison as CSX CEO.

The CSX board of directors has not taken a position on how shareholders should vote other than to note that there are arguments for and against giving Harrison the money he wants.

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