Ackman has announced Monday that retired Norfolk Southern Corp. vice chairman Stephen Tobias will be presented as an alternative director for the shareholder vote at CP’s annual meeting on May 17 in Calgary. As can be expected, CP is backing an incumbent team of 15 directors. Ackman has presented shareholders with seven alternatives.
“My nearly 40 years of railroad operations experience enable me to make a real contribution to this project,” said Mr. Tobias in a statement. “I am excited about this opportunity to help unlock the enormous potential of a railroad as historic and iconic as the Canadian Pacific Railway. One can’t overemphasize the importance of a culture of execution at a railroad.”
Mr. Ackman acquired a 14.2-per-cent stake in CP last fall and it is currently the largest holding of his fund. Ackman views CP as wildly inefficient with a top heavy management team. In fact, CP is often voted the least efficient railway in North America.