Keith Creel - Date/Photographer unknown.

28 March 2012

Another Tidbit from the CP Rail Saga

Toronto Ontario - In my post on 26 Mar 2012, I mentioned a tidbit from page 16 in the CP Rail proxy circular that pointed to a second CN executive, beyond former CN CEO Hunter Harrison, as part of Pershing Square's plan to rehabilitate the railroad.
 
According to the filing, "Mr. Ackman also suggested that, as Mr. Harrison was still subject to a non-solicitation covenant in favour of CN, Canadian Pacific should hire the CN Executive prior to hiring Mr. Harrison."
 
After I mused about whom that person could be, "Financial Post" published a story, based on unnamed sources, that it was Keith Creel, the highly regarded chief operating officer at Canadian National. Creel is in his early 40's, while Harrison is 67-years-old.
 
Speaking with Hunter Harrison by phone today, he said this:  "I don't know who they are talking about. If somebody said, was it Keith Creel, I'm not in a position to be recruiting anyone. I don't have a job myself. If I do get the job, I have a non-solicit till the end of the year".
 
Harrison is referring to a stipulation in his employment contract with Canadian National that restricts him from hiring away any of his former CN colleagues until three years after he left the railway.
 
In our interview with Bill Ackman that aired 6 Feb 2012, I asked about Keith Creel as a possible successor to Harrison, given the latter's age.
 
"He's got a very good reputation," answered Ackman.
 
"Is he a potential successor if Hunter gets it?" I asked.
 
"Sure. I think Hunter is open to the best talent in the industry. If he needs to recruit externally, he'll go there," Ackman said.
 
As for CP Rail's investor meeting on Tuesday in Toronto, Hunter Harrison had this to say:  "The record is clear. People have to decide whether they want the status quo or change."
 
BNN continues to request interviews with CP Rail's CEO Fred Green and Chairman John Cleghorn. The company has declined our invitations.
 
Howard Green.