Canadian Pacific Railway Ltd, Canada’s second-biggest railroad, named Hunter Harrison as chief executive, months after its top shareholder pitched for the former CEO of rival Canadian National Railway Co.
Activist investor William Ackman’s Pershing Square Capital Management, CP’s biggest shareholder with a 14.1 percent stake, had been seeking to replace Fred Green with Harrison to help improve CP’s worst-in-class operating efficiency.
Green and Chairman John Cleghorn quit in May, after which the company started a CEO selection process. The company elected Paul Haggis chairman earlier this month.
CP’s operating ratio, a key measure of railroad performance, has lagged CN’s since the mid-1990s. In the first quarter, CP’s operating ratio was 80.1 percent, while CN’s was 66.2 percent.