As discussions continue about the future leadership of CSX Corp., the Jacksonville-based railroad company announced Tuesday morning that Chairman and CEO Michael Ward will retire effective May 31.
CSX President Clarence Gooden will also retire May 31, the company said.
Executive Vice President Fredrik Eliasson was promoted to president to replace him, but no CEO was named.
Former Canadian Pacific Railway Ltd. CEO Hunter Harrison has been negotiating with CSX’s board of directors to possibly become chief executive.
However, talks have snagged over Harrison’s compensation package, as well as the make-up of the board of directors.
CSX said last week that hedge fund Mantle Ridge, which is working with Harrison, wants six of 14 seats on CSX’s board.
“The changes are part of an orderly transition of the company’s senior leadership that the board has been considering for more than a year,” CSX said in a news release Tuesday.
“The appointment of Mr. Eliasson as president is not intended to pre-empt or otherwise affect any discussions CSX may continue to have with Mr. Hunter Harrison and Mantle Ridge regarding Mr. Harrison becoming the CEO at CSX,” the release said.
CSX plans to hold a special meeting to let shareholders decide if they want to accept Harrison’s and Mantle Ridge’s demands.
Ward, 66, had planned to retire in 2016 before his heir apparent, then-CSX President Oscar Munoz, left to become CEO of United Continental Holdings Inc.
When Munoz left in September 2015, Ward agreed to stay on as CEO for three more years.