William Ackman, an activist investor, won a resounding victory on Thursday in wrestling control of Canadian Pacific Railroad, as the CEO resigned Thursday and six other directors, including the chairman, joined him in not standing for re-election.
The resignation of Fred Green and the decision by Chairman John Cleghorn and four other directors not to seek another term paves the way for the seven-director slate proposed by Ackman, principal of Pershing Square Capital Management. The move will also likely allow Ackman’s champion, E. Hunter Harrison, former CEO of Canadian National Railway, to take the reins of CP.
Bringing on Harrison, would be key to CP reducing its operating ratio to 65 percent by 2015, Pershing Square said. CN has the lowest operating ratio, a key measure of profitability, among the major North American railroads.
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