Posts Tagged ‘railroad executives’

NS Names Earhart as Chief Financial Officer

August 20, 2017

Cynthia C. Earhart has been appointed by Norfolk Southern to the post of executive vice president and chief financial officer

Earhart

Earhart, a certified public accountant who joined NS in 1985, will replace Vice President and Controller Thomas E. Hurlbut, who has served as interim CFO since the 2017 retirement of Marta R. Stewart.

Earhart most recently served as executive vice president  and chief information officer. She will retain her information technology responsibilities.

Other positions that Earhart has held at NS include assistant vice president,  vice president of information technology and vice president of human resources.

Prior to working at NS, Earhart was employed as an accountant at Ernst & Young predecessor CPA firm Ernst and Whinney.

She holds a Bachelor of Science degree in accounting from the University of Missouri and has completed the Advanced Management Program at Harvard Business School.

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Ex-Conrail Head Named FRA Director

July 12, 2017

A former Conrail executive has been named by President Donald Trump to serve as administrator of the Federal Railroad Administration.

Ronald Batory

Ronald L. Batory has more than 45 years of railroad industry experience and until March 31 served as president and chief operating officer of Consolidated Rail Corporation.

Batory joined Conrail in 1998 as vice president-operations and was appointed COO in 2004.

Previously, he served as president of the Belt Railway of Chicago. His career includes more than 20 years working for eastern and western Class I railroads as well as assisting a court-appointed trustee’s oversight of a regional railroad bankruptcy.

His appointment is subject to Senate confirmation. The FRA is currently without a director although deputy administrator Heath Hall assumed his position on June 23.

Observers Give Their Take on New Amtrak CEO

June 29, 2017

So who is this former airline executive that Amtrak has chosen to take over as its CEO later this year when Charles “Wick” Moorman retires?

Richard Anderson

Richard Anderson was the head of Delta Air Lines, but he also at one time served as a prosecutor and the vice president of an insurance company, United Health.

His father, Hale, worked for the Atchison, Topeka & Santa Fe in Texas and the family moved multiple times as the elder Anderson held office jobs at posts from Galveston to Dallas and Amarillo.

When he was in college, the younger Anderson’s parents died of cancer and he subsequently had to raise his two younger sisters as he worked to earn college tuition money.

After earning his law degree, Anderson worked in Texas for nearly a decade as a prosecutor.

His entry into the airline industry began in the legal department of Houston-based Continental Airlines.

He would later join Northwest Airlines and became its CEO three years later. As Delta Air Lines was emerging from bankruptcy in 2007, its board of directors asked Anderson to become its CEO, which meant that he succeeded Gerald Grinstein, a former CEO of the Burlington Northern Railroad.

“Richard has a hands-on, roll-up-your-sleeves, let-me-see-how-this-thing-really-works kind of approach,” John Dasburg, Northwest’s former president, told USA Today in 2008.

During his time at Delta, Anderson sometimes sought unconventional solutions to solve problems.

For example, in an effort to cut fuel costs, Delta purchased an oil refinery near Philadelphia in 2012.

Industry reaction to Anderson being named co-CEO of Amtrak – Moorman won’t be retiring until late December – has been mostly positive.

He received unqualified endorsements from Linda Bauer Darr, president of the American Short Line and Regional Rail Road Association, and from Ed Hamberger, the president of the Association of American Railroads.

Jim Mathews, head of the National Association of Railroad Passengers lauded Anderson’s transportation experience.

“NARP is very pleased Amtrak is making the sensible move of bringing in an executive with strong management experience in a customer-service oriented transportation company,” Mathews said.

Former NARP executive director Ross Capon said the fact that Moorman will be Amtrak’s co-CEO through December shows the two men will likely have a good working relationship and that Anderson will be able to learn from Moorman.

Not all advocacy groups were enthusiastic about Anderson’s appointment.

Charles Leocha, chairman of Travelers United and an airline consumer advocate, said in an interview with Trains magazine that Anderson is “a real charger” who “has not been a friend of consumers, but ran an efficient airline as consolidation was completed . . .”

Richard Rudolph, the president of the Rail Users Network, said Amtrak needs someone who knows railroads, knows how to run a company and can stand up against Congress and President Donald Trump.

Also expressing skepticism was former Amtrak President and CEO David Gunn.

“If he can’t coax people at Amtrak who know how to run a railroad out of their fox holes, he’s doomed,” Gunn said in an interview with Trains. “And you have to convince them you have a plan that makes sense operationally and is not driven by politics.”

Gunn said the best hope is that Anderson has some knowledge of railroad operations.”

Jackson McQuigg, a railroad historian and passenger advocate based in Atlanta, told Trains that he sees in Anderson a man with a demeanor similar to that of W. Graham Claytor Jr. between 1982 and 1993.

“He had a stellar reputation in Atlanta and cared about the city and its history,” McQuigg told Trains.

While at Delta and Northwest, McQuigg noted, Anderson had a reputation for being a tough guy who wasn’t afraid to mix it up with the airline unions.

“Maybe that bunch in the White House will listen to him,” McQuigg said of Anderson. “It will be interesting to see if that happens or if Anderson presides over dismemberment instead. All I know is that the long-distance trains had better be preserved or the whole thing will go up in political flames.”

Richard Anderson to become Co-CEO on July 12, Wick Moorman Plans to Retire December 31

June 26, 2017

Amtrak will be getting a co-president and CEO next month. Charles “Wick” Moorman will be joined by Richard Anderson, who has 25 years of experience in the airline industry.

This arrangement will continue until Dec. 31, when Moorman plans to step down from his position at Amtrak but continue as an adviser to the company.

The announcement was made in an internal memorandum sent to Amtrak employees and confirmed by a statement issued by Amtrak.

In the memo to employees, Moorman noted that he promised his wife that he time at Amtrak would be short.

Moorman said he said he would stay at Amtrak only as long it took to achieve three goals: Making the company more efficient, developing a stronger safety culture and working with the board of directors to find an executive to lead the railroad long term.

Anderson is a former chief executive at Delta Air Lines and Northwest Airlines, the latter having been acquired by the former.

“Richard has a proven track record of driving growth while enhancing the customer experience,” Moorman said. “What I really admire about Richard is he faces difficult challenges head-on. He has helped companies navigate bankruptcy, a recession, mergers and acquisitions, and 9/11. In total, Richard is a leader with the strategic vision and tactical experience necessary to run a railroad that benefits our partners, our customers and our employees.”

The statement noted that Anderson’s father worked for the Santa Fe.

Anderson, 62, most recently was executive chairman of the Delta Air Lines board of directors after serving as the airline’s CEO from 2007 to 2016. He was executive vice president at United Healthcare from  2004 to 2007 and CEO of Northwest Airlines from 2001 to 2004.

He also served in the legal division at Continental Airlines and was a former county prosecutor.

“It is an honor to join Amtrak at a time when passenger rail service is growing in importance in America. I look forward to working  alongside Amtrak’s dedicated employees to continue the improvements  begun by Wick,” Anderson said in a statement.

Anderson earned a Bachelor of Arts degree at the University of Houston at Clear Lake City and a Juris Doctorate at South Texas College of Law. He is a native of Galveston, Texas.

CSX OKs Money for Harrison, Mantle Ridge

June 21, 2017

It’s now official. CSX CEO E. Hunter Harrison will not lose any money from having retired early from Canadian Pacific in order to pursue the head job at CSX.

The CSX Board of Directors has voted to give Harrison and hedge fund Mantle Ridge the $84 in salary and benefits that Harrison gave up by leaving CP early.

CSX said in a regulatory filing that it will pay Mantle Ridge $55 million and provide Harrison with a lump-sum payment of $29 million. The CSX board also agreed to pay Harrison’s taxes related to the payment.

The reimbursement vote was expected, analysts said, because CSX stock has increased in value since the news broke that Harrison was interested in becoming the railroad’s CEO.

Analysts say the move was a vote of confidence that Harrison will be able to lower the railroad’s operating ratio and increase its profitability, which in turn will bolster the share price of CSX stock.

Harrison joined CSX last March after leaving CP in January.

CSX Shareholders Favor Giving Harrison More $$$

June 6, 2017

As expected, most CSX shareholders have voted to give CEO E. Hunter Harrison the money that he wants.

E. Hunter Harrison

In an advisory vote, 93 percent of the shareholders favored giving Harrison and hedge fund Mantle Ridge $84 million to reimburse them for salary and benefits that Harrison forfeited by leaving early as the CEO of Canadian Pacific last January.

The vote was made public on Monday at the CSX annual meeting in Richmond, Virginia.

Harrison had threatened to resign if shareholders rejected the reimbursement request.

Many analysts had expected the shareholders to agree to giving Harrison the money because CSX stock has risen by 40 percent in value since it became known that Harrison was seeking to become the railroad’s head.

Harrison took over the CEO post last March. Paying Harrison and Mantle Ridge will cost about 12 cents per share.

CSX also said that 13 candidates for its board of directors have been elected, with each member receiving the backing of at least 96 percent of shareholders.

They include Harrison, Mantle Ridge founder Paul Hilal, Donna M. Alvarado, Sen. John B. Breaux, Pamela L. Carter, Steven T. Halverson, Edward J. Kelly III, John D. McPherson, David M. Moffett, Dennis H. Reilley, Linda H. Riefler, J. Steven Whisler, and John J. Zillmer.

G&W Names Hellman Board Chairman

May 31, 2017

John Hellman has been appointed chairman of the board of directors of Genesee &Wyoming.

Hellman is currently the company’s president and CEO and will succeed Mortimer Fuller III, who is retiring.

In a news release, G&W said that Hellmann will continue in his current positions.

He has served on the board since 2006 and succeeded Fuller as CEO in 2007. Hellman served as chief financial officer in 2000 and was named president in 2005.

Fuller had served as board chairman since 1977 and is a great-grandson of Edward Fuller, the founder of the Genesee and Wyoming Railroad in 1899.

G&W said that during its annual meeting held on May 24 that stockholders elected as directors Albert Neupaver, Joseph Pyne, Hunter Smith and Hellmann for terms that expire in 2020.

Directors whose terms on the board continued after the annual meeting are Richard Allert, Hans Michael Norkus, Ann Reese, Richard Bott, Oivind Lorentzen III and Mark Scudder.

Harrison Has Medical Condition That Often Has Him Working From Home, Not CSX Headquarters

May 19, 2017

The Wall Street Journal reported this week that CSX CEO E. Hunter Harrison has a medical condition that often forces him to work at home.

E. Hunter Harrison

The newspaper gave few specific details about the condition and the 72-year-old executive said that he should not be judged by his medical record.

“I’m having a ball and I’m running on so much adrenaline that no one can stop me,” Harrison told the Journal. “Don’t judge me by my medical record, judge me by my performance.”

Harrison acknowledged that he carries a portable oxygen system, but his doctors cleared him for his position.

“There are times when I get a little shortness of breath so I take oxygen and it helps,”
Harrison said.” Sometimes I get a cough and the oxygen makes it go away.”

CSX Chief Financial Officer Frank Lonegro told an investor conference that Harrison is fully engaged in his job.

“We’re really running to play catch up with him,” Lonegro says. “He’s a 24-hour-a-day, seven-day-a-week kind of guy.”

Trains reported that CSX was well aware of Harrison’s medical condition when it hired him.

However, that was a point of contention at one point when CSX demanded that independent physicians review Harrison’s medical records, a request that Harrison refused.

CSX said it would not comment on Harrison’s health.

The Journal said that during his last two years at Canadian Pacific, Harrison frequently worked from home rather than in his CP office in Calgary.

NS VP Stewart to Retire Aug. 1

April 27, 2017

Norfolk Southern Executive Vice President And Chief Financial Officer Marta R. Stewart will retire on Aug. 1.

Stewart

Stewart joined NS in 1983 as an accountant and has been instrumental in developing the company’s accounting systems and controls.

She assumed her current position in 2013 and previously held the posts of vice president accounting and controller, and vice president finance and treasurer.

“Marta has made significant contributions to NS over the course of her career, most recently as one of the architects of our strategic plan,” said NS CEO James A. Squires in a statement. “Her intimate knowledge of the railroad business, engagement with stakeholders inside and outside the company, and relentless focus on driving shareholder value has positioned NS for continued success. On behalf of the board and management team, I thank Marta for her service and wish her the best in retirement.”

Stewart said she was proud of the company’s accomplishments during her tenure and the progress it made in implementing its strategic plan.

“I will miss working with a great leadership team and talented employees, and am confident NS is on track to achieve its objectives as it becomes an even stronger, more profitable railroad,” she said in a statement.

Harrison is the New CSX President, Too

April 24, 2017

E. Hunter Harrison has added another title to his resume at CSX. He is now the president of the company as well as its chief executive officer.

Harrison replaced Fredrik Eliasson, who was named CSX president on Feb. 21 after serving as the railroads’s chief marketing officer.

Eliasson will now become executive vice president and chief sales and marketing officer for CSX.

The moves in the executive suite mean that CSX has had three presidents in less than four months.

The year began with Clarence Gooden as president. The original plan was for Gooden to step down at the end of May when then-CEO Michael Ward also would retire.

Harrison assumed the CEO post on March 6. The good news for Eliasson is that he will get to keep the pay increase that he received when he was named president.

“There were no compensation adjustments associated with these title changes,” CSX said in a regulatory filing.