In a strategic move, CSX has appointed Steve Angel, the former CEO of Linde, as its new chief executive officer, succeeding Joe Hinrichs. This change comes amidst pressure from an activist investor regarding CSX’s recent financial and operational performance.
CSX Chairman John Zillmer expressed enthusiasm for Angel’s appointment, highlighting his visionary capabilities and extensive experience in leading large public companies. Angel boasts an impressive track record, having delivered substantial shareholder returns during his time at Linde and its predecessor, Praxair. Under his leadership, the combined entity of Linde AG and Praxair saw a significant increase in market capitalization.
Angel’s connection to the railroad industry dates back to his early career at General Electric, where he worked in locomotive and rail operations. His familiarity with the industry and CSX as a former customer positions him uniquely to spearhead the company’s future growth. Angel expressed his excitement about joining CSX and his commitment to enhancing the safety of the railroad, providing reliable service, and increasing shareholder value.
Despite the company’s recent criticisms from Ancora Holdings concerning its leadership and operational performance, CSX has achieved notable milestones under Hinrichs. These include the completion of major projects like the Howard Street Tunnel clearance and the Blue Ridge Subdivision rebuild ahead of schedule. These accomplishments were part of a larger three-year plan aimed at achieving financial targets.
Independent analyst Anthony B. Hatch expressed surprise at the CEO transition, given the recent progress under Hinrichs’s leadership. Nonetheless, the board remains confident in Angel’s ability to build on CSX’s momentum and guide the railroad toward sustained growth. CSX’s stock saw over a 3% rise following the announcement, signaling investor optimism about Angel’s leadership.
Hinrichs, reflecting on his tenure, expressed pride in the accomplishments made during his time with CSX, citing improved performance, strengthened customer relationships, and a culture focused on safety and collaboration. He conveyed confidence that Angel’s leadership, alongside the board, will continue to propel the company forward, delivering lasting value to all stakeholders.