Reuters — TCI Fund Management said on Thursday Canadian National Railway’s search for a new chief executive officer should be delayed until shareholders at the nation’s top rail operator vote for a new search committee to elect a CEO.
The announcement comes days after CN said TCI’s pick and former Union Pacific executive Jim Vena had pulled out of the running for the CEO’s role.
“Given the CN board’s history of failed CEO appointments, it is not a surprise to us that the board has failed once again to attract the best candidate for the role,” TCI said, adding that shareholders can be confident the board will conduct a fair selection process if they elect the four candidates nominated by them at a special meeting, which is scheduled early next year.
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TCI, which owns a five per cent stake in CN, has been seeking a change at the company since August after it entered into a bidding war with Canadian Pacific Railway for U.S. rail operator Kansas City Southern, which CP finally clinched in a US$27 billion deal.
The fallout from the deal caused CN CEO Jean-Jacques Ruest announce his retirement after facing consistent pressure from the hedge fund, with the railroad operator eyeing a new CEO announcement by January 2022.
TCI’s comments mark its foray into shareholder activism in Canada, where the fund has been holding a position in CN since 2018.
CN did not immediately respond to a Reuters’ request for a comment.
— Reporting for Reuters by Nathan Gomes in Bangalore.
