CSX to Get New CEO on September 26

CSX CEO James Foote will retire later this month and be replaced by a former Ford Motor Company executive.

Taking the helm of CSX on Sept. 26 will be Joseph R. Hinrichs, 55, who has worked in the automotive, manufacturing, and energy industries for more than 30 years.

Joseph Hinrichs

At Ford he was president of the company’s automotive business until 2020. He also served as President of Global Operations, President of the Americas, and President of Asia Pacific and Africa.

In a statement, Hinrichs pledged to continue CSX’s focus on growth, technology, and improving the company’s culture.

Hinrichs also serves in advisory and board positions of various companies including Exide Technologies, Luminar Technologies, microDrive, and First Move Capital.

He previously served as a Senior Advisor at Boyden California, an operating advisor at Assembly Ventures, as well as a Director at Ascend Wellness Holdings; GPR, Inc.; Rivian Automotive, Inc.; and Ford Motor Credit Company.

He was chairman of the National Minority Supplier Development Council from 2016-19 and also served on the boards of CEO Climate Dialogue, Climate Leadership Council, and the US-China Business Council.

Hinrichs earned a bachelor’s degree in electrical engineering, graduating magna cum laude from the University of Dayton, and an MBA from the Harvard Business School.

He was awarded an Honorary Doctor of Humane Letters degree from Tiffin University and an Honorary Doctor of Science and Business Administration degree from Cleary University.

A CSX news release said Foote will serve as an advisor to Hinrichs for six months. The CSX statement said the appointment of Hinrichs was a “planned secession.”

Foote also will step down from his post on the CSX board of directors

A story posted on the website of Railway Age included a note from editor William C. Vantuono saying that during a short interview following the announcement, Hinrichs said having experience as a major railroad customer will be beneficial in his new job at CSX, and that addressing the service delivery challenges of the past two to three years will be his prime focus.

Vantuono noted that Hinrich’s experience as a railroad shipper is similar to the background of former Canadian National CEO J.J. Ruest, who had a long tenure in the chemical industry, another major user of railroads for transportation

CSX to Require CEOs to Get Annual Exam

The board of directors of CSX has decided that henceforth all of its CEOs will have an annual visit with a doctor.

The board will adopt the policy change in the wake of the death of former CEO E. Hunter Harrison last month.

The health of the 72-year-old Harrison had been an issue when he was hired as CEO last spring.

Harrison was known to have health issues and the CSX board at the time insisted that his medical records be reviewed by an independent physician. But Harrison balked, saying that his doctor had cleared him to assume the CEO position.

The CSX board dropped its demand and Harrison took over the C suite at CSX in March.

Harrison died on Dec. 16 two days after taking a medical leave for unspecified health problems.

Railway Age magazine has reported that Harrison suffered from emphysema and it had been widely reported that he used supplemental oxygen.

Federal securities laws do not require companies to disclose executive health problems, but some firms provide that information because it might affect an investor’s decisions to buy or sell stock.

It is not uncommon for companies to be cagey about why their CEOs take medical leave.

United Continental Holdings, the parent company of United Airlines, for example disclosed that its CEO Oscar Munoz had been hospitalized but did not initially reveal in October 2015 that he had suffered a heart attack.

Munoz, who once headed CSX, underwent a transplant and returned to work the following year.

Thomas Flannery, managing partner at the executive search firm Boyden, described the matter of forcing an executive to share his or her medical history with a board of directors as a slippery slope because of privacy concerns. It could have a bigger downside than upside.

He said he encourages executives and their boards to be open about health problems and whether they affect the executive’s ability to fulfill his or her duties.

The CSX board plans to change its policy next month during a meeting, thus avoiding a vote on a resolution that was set to be introduced at the company’s annual meeting.

The policy will require the CEO to get a comprehensive physical performed by a medical provider chosen by the board, according to a letter submitted to the Securities and Exchange Commission that was reviewed by The Wall Street Journal.

A CSX spokesman would not comment on the matter.

The shareholder vote had been proposed by John Fishwick, a Virginia attorney who owns 1,000 shares of CSX stock.