Turn for the worse

15 December 2017 By Robert Cyran Follow @rob_cyran

The railroad hired 73-year-old Hunter Harrison in a revival effort earlier this year. Less than a year into his four-year contract, he’s on medical leave. Valuations and big pay packages pinned on aging executives call for an actuarial discount.

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CSX said late on Dec. 14 that Chief Executive Hunter Harrison is on medical leave due to unexpected complications from an unspecified recent illness. The train-line operator has named Chief Operating Officer James Foot as acting replacement.

The railroad signed the 73-year-old to a four-year contract in March, and the company paid $84 million to reimburse activist investor Mantle Ridge for costs associated with hiring him. Harrison occasionally uses an oxygen tank, but has insisted he is healthy enough for the job.

Reuters reported on Dec. 6 that the U.S. Government Accountability Office is probing the safety of longer freight trains that CSX runs in order to boost profitability.

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Turn for the worse

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