CALGARY, Alta.–Canadian Pacific Railway Limited announced that Keith Creel will become President and Chief Executive Officer of the company effective January 31, 2017 following E. Hunter Harrison’s decision to retire from CP.
Harrison will take vacation leave effective immediately until January 31, 2017, and Creel will assume the CEO’s responsibilities during this period.
“Hunter has made enormous contributions to CP, and we are forever grateful for his years of service,” said Andrew F. Reardon, Chairman of the Board. “We have a tremendous CEO-in-waiting in Keith Creel. Keith and his team are ready to formally take the reins.”
“Leaving CP is bittersweet,” said Harrison. “I have had a wonderful experience and depart with many friends and with full confidence in Keith’s ability to build on the great success we have enjoyed.”
Harrison had approached the Board to discuss his retirement from CP and potential related modifications to his employment arrangements that would allow him to pursue opportunities involving other Class 1 Railroads. A special committee of the Board oversaw discussions with Harrison. Following negotiations, receipt of independent legal advice, and careful deliberation, the special committee recommended to the Board that CP enter into a separation agreement with Harrison.
The previously-agreed consulting agreement between CP and Harrison will not take effect and he will not be providing any consulting or other services to CP following his retirement. CP has also reinforced Harrison’s non-solicitation obligations with respect to senior CP employees. Harrison has agreed to sell all of his CP shares by May 31, 2017. CP will have no role in Mr. Harrison’s future endeavours.