USA: The board of Class I freight railway CSX named Steve Angel as President & Chief Executive Officer and a member of the board with effect from September 28, succeeding Joe Hinrichs who has left the company after three years.
No reason was given for the departure of Hinrichs. CSX said Angel would work closely with the management team to ensure a seamless transition. It said operating performance remains strong, and the company still expects to deliver full-year volume growth.
Steve Angel
Angel began his career at General Electric where he held a variety of management positions for over 22 years and worked directly with locomotive and rail operations. He was CEO of industrial gases supplier Praxair in 2007-18, and after its merger with Linde in 2018 he became CEO of the combined company until 2022, when he was named Chair. He plans to retire from Linde’s board in January 2026.
‘He is a visionary in creating long-term value and an expert in guiding companies through significant transformation. The board conducted a very targeted process, and Steve was the clear choice’, said CSX Chairman John Zillmer. ‘The board is laser-focused on advancing CSX’s strategic priorities and maximising shareholder value, and we are confident Steve has the right skillset, expertise, and background to help us deliver our next phase of growth.’
Angel said ‘my top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders’.
In a statement on his departure, Hinrichs said, ‘I leave with pride for all that we have accomplished together and have full confidence that under Steve and the board’s leadership, the company will continue to grow stronger, delivering lasting value to all our stakeholders’.
Ancora responds
Activist investor Ancora Holdings Group wrote to the CSX board in August calling on it to explore options to merge with BNSF or Canadian Pacific Kansas City. It argued that ‘once Norfolk Southern and Union Pacific start operating as a unified transcontinental railroad, no railroad has more to lose than CSX’. The letter was highly critical of Hinrichs, and Ancora said if CSX could not find a merger partner, it wanted the board to replace Hinrichs.
Responding to the announcement of Hinrichs’ departure, Ancora said ‘although Steve Angel is not a railroader by trade, his M&A pedigree and value creation record indicate his appointment is an initial step in the right direction for CSX. We expect the board and Angel to be far more proactive when it comes to pursuing multiple opportunities to increase shareholder value and identifying a willing partner to merge with. Furthermore, with renewed leadership, we anticipate Angel will evaluate the full leadership team in order to restore the operational excellence that was a key tenet of CSX’s past success.’
Ancora ‘continues to purchase shares of CSX and hopes to have a strengthened relationship with the company if leadership continues taking the right steps to maximise value’, and said ‘it is regrettable that Hinrichs’ actions forced us to go public and loudly push for a leadership change. This should be a cautionary tale for all corporate leaders who consider putting their own agenda ahead of shareholders’ best interests.’
