By Mark Basch, Contributing Writer
In a Securities and Exchange Commission filing Friday about the $84 million payment approved for President and CEO Hunter Harrison, CSX Corp. said the board is concerned about his health.
Although Harrison needed the assistance of a portable oxygen machine at the CSX annual meeting June 5, he insisted it is not interfering with his work.
“Continued availability and service can never be guaranteed for any individual and is a particular risk in the case of Mr. Harrison, who is 72 years old and has experienced medical issues at various times, including a respiratory condition that requires him to use supplemental oxygen,” the SEC filing said.
“An extended or permanent loss of the services of Mr. Harrison, due to death, disability or any other reason, could adversely disrupt the pace of implementing the company’s Precision Scheduled Railroading, or otherwise adversely affect the company or the market price of the company’s securities,” it said.
Precision Scheduled Railroading is Harrison’s philosophy of improving railroad operations, which he has implemented at other major railroad companies.
CSX said Friday its board of directors has approved an $84 million payment to Harrison to remain as CEO after shareholders OK’d it at the annual meeting.
The shareholder measure was only an advisory vote for the board, and the directors were widely expected to approve the $84 million payment regardless of the outcome.
Harrison was seeking the payment as reimbursement for compensation he forfeited when he left his previous position as CEO of Canadian Pacific Railway Ltd. to pursue the CSX job.
When Harrison was hired as CSX CEO in March, his agreement said he could resign if he didn’t get the payment.
In a letter to Harrison on Friday, CSX board Chairman Edward Kelly said by accepting the payment, Harrison is not entitled to resign.
Kelly said at the annual meeting that there were “no concerns moving forward” about Harrison’s health.