CN Suspend Ex-CEO’s Pension


    Canadian National Railway Co. has suspended Hunter Harrison’s pension payments, alleging that its former chief executive officer will breach provisions of his retirement deal and poses a serious threat to CN if he joins rival Canadian Pacific Railway Ltd., says a report in the Globe and Mail. Harrison is in the midst of a proxy battle by U.S. hedge fund Pershing Square Capital Management LP on CP which is lagging behind other freight carriers in the industry. It wants to replace current CEO Fred Green with Harrison. Now CP’s largest shareholder, it hired Harrison as a consultant last fall to help the hedge fund assess its potential investment in CP. The report says Pershing Square is prepared to guarantee Harrison’s retirement benefits if CN prevails with its suit. Harrison had a non-compete clause that expired at the end of 2011. His pension benefits have a present value of $20.6 million and restricted share units worth $17.9 million.