CP Rail CEO to step down immediately

Canadian Pacific Railway Ltd. (TSX:CP) says that Hunter Harrison will step down as CEO immediately instead of leaving in July as announced last summer.

The company said after markets closed that current president and chief operating officer Keith Creel will become CEO effective Jan. 31.

It said Harrison will take vacation leave until then and Creel will assume the CEO’s responsibilities during this period.

Harrison said in the statement that leaving was “bittersweet.”

CP Rail says the earlier exit was approved after Harrison asked to discuss potential modifications to his contract that would allow him to “pursue opportunities involving other Class 1 railroads.”

It said the board agreed to a limited waiver of his non-compete obligations in return for Harrison agreeing to forfeit “substantially” all benefits he is entitled to receive from CP going forward, including his pension, worth in total about $118 million.

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