Business & Investment

CN Railroad CEO Ruest retires

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Canadian National Railway Co. said CEO Jean-Jacques Ruest was due to retire by the end of January, bringing a clear victory to major shareholders who had been forced to resign.

The surprise announcement was made by TCI Fund Management Ltd, the second largest holder of CN. Will take place the day after the announcement of the change plan on the railroad. TCI argues that CN needs to take “urgent” steps to improve efficiency and profitability.

The company, run by billionaire Chris Horn, has appointed four directors to its board of directors and called on Ruest to be replaced by industry veteran CN’s former chief operating officer Jim Vena.

At a conference call on October 19, Ruest said the board was looking for the best alternative to him. “They are overtime. That doesn’t mean they’ll be late,” he said. “I’m staying until the end of January, or whenever a smooth transition is needed. At this point we are looking for quality, and sometimes it can take some time.”

Montreal-based Canadian National Railway said Ruest will also leave the board next year. In a statement, CN Chairman Robert Pace said, “Thanks to JJ for his dedication to CN for over 25 years and serving as CEO since 2018. He is the company and all stakeholders. Has provided strong and exciting leadership to the company. “

According to Pace, Roost has postponed discussions on retirement plans to see the company through the possibility of a merger with Kansas City Southern and the introduction of a new strategic plan in September.

But it is $ 33.6 billion acquisition offer in southern Kansas City That eventually led to TCI’s decision to resign Ruest and launch a campaign to change its board of directors. The investment company said the bid was destined to fail, putting the Canadian National at unacceptable economic risk.

U.S. regulators disrupt merger Blocked key provisioning In a transaction. Kansas City Southern has agreed to be acquired by Canadian Pacific Railway Co., Ltd... , CN’s small rival, a transaction that must be reviewed by antitrust law.

“It’s a good start to dismiss the same CEO that the board set up just three years ago, but it’s fundamentally lacking leadership, failure to strategic oversight, and lack of operational expertise at the board level. The issue has not been addressed. The TCI has stated in a statement about Ruest’s departure.

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CN Railroad CEO Ruest retires

https://www.ttnews.com/articles/cn-railway-ceo-ruest-retire CN Railroad CEO Ruest retires

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