Canadian Pacific Railway Limited (CP) has announced that Keith Creel will become president and chief executive officer, effective January 31, 2017, following E. Hunter Harrison’s retirement. Effectively immediately, Harrison will take vacation leave 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,” remarked Chairman of the Board Andrew F. Reardon. “We have a tremendous CEO-in-waiting in Keith Creel. Keith and his team are ready to formally take the reins.”
Harrison had approached the Board to discuss his retirement from CP and modifications to his employment arrangements that would allow him to pursue opportunities involving other Class I railroads. CP entered into a separation agreement with Harrison that included a limited waiver of Harrison's non-competition obligations.
In consideration of the waiver, Harrison has agreed to terminate all roles with CP and forfeit substantially all benefits and perquisites he is entitled to receive from CP going forward, including his pension. Harrison has also agreed to surrender for cancellation all of his vested and unvested equity awards, except for a portion of his vested options he was granted upon arrival at CP in June 2012.
Harrison will not be providing any consulting or other services to CP following his retirement and he has agreed to sell all of his CP shares by May 31, 2017.
“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.”