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CSX said Monday that it was replacing CEO Joe Hinrichs with a 70-year-old chemicals and manufacturing executive, months after the company missed an opportunity to be acquired by a larger rival.
Hinrichs, who left Ford in 2020 and joined CSX as CEO in 2022, had been sharply criticized by activist investor Ancora over the railroad’s underperformance and strategic missteps — including failing to pursue a deal with Union Pacific, which went on to acquire another railroad, Norfolk Southern, instead.
Steve Angel, who takes over as CEO effective immediately, serves on the board of GE Vernova and GE Aerospace, and was formerly CEO of Linde, the $221 billion chemicals and gas giant.
CSX has found in Angel an operator who has a track record of creating value — Linde shares are up 219% since the close of its 2018 merger with Praxair — and a reputation as a pragmatic dealmaker. CSX shares rose around 3.5% on the news of Hinrich’s ouster, reflecting both investor discontent with his leadership but also optimism about Angel.
“The board is laser-focused on advancing CSX’s strategic priorities and maximizing shareholder value, and we are confident Steve has the right skillset, expertise, and background to help us deliver our next phase of growth,” CSX chair John Zillmer said.
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CSX still faces pressure from activist investor Ancora, which mounted a successful proxy fight at Norfolk Southern last year and has criticized CSX’s deteriorating performance over the last few years. Angel lacks direct experience running a railroad — although he was a senior executive at GE, which was long a big train manufacturer — and has inherited a leadership team that Ancora has taken issue with. The activist in an August letter pushed CSX to find a deal partner of its own and oust Hinrichs.
Notable
- Two other major CEOs were ousted Monday: GSK’s Emma Walmsley is out, just a few weeks after she laid out her long-term vision for the company in an interview with Semafor’s Andrew Edgecliffe-Johnson, as is Barrick’s Mark Bristow.