(Bloomberg News circulated the following article by Rip Watson on February 22.)
WASHINGTON — Canadian Pacific Railway Ltd., the nation’s No. 2 railroad, said Chief Executive Officer Robert Ritchie will retire in May and be replaced by Fred Green.
Green, 49, is chief operating officer and also became the railroad’s president last year when Ritchie, 61, stepped aside from that role. J.E. (Ted) Newall, chairman of the board, also is retiring May 5 after the company’s annual meeting, and John Cleghorn will be named to replace him, the company said in a statement.
Ritchie, who worked for the Calgary-based railroad since 1972 and became CEO in 1995, oversaw Canadian Pacific’s spin off from Canadian Pacific Ltd., which also owned mine, hotel and shipping assets. Under his direction, the railway’s net income rose 46 percent from 2001, the first year its shares were publicly traded, to reach C$542.9 million ($472.4 million), or C$3.39 a share, last year.
Green’s appointment makes him the third new chief executive officer in four months among the six largest North American railroads. James Young succeeded Richard Davidson at Union Pacific Corp. in January, and Charles “Wick” Moorman assumed the top post at Norfolk Southern Corp. in November.
Newall, chairman of Calgary-based Nova Chemicals Corp., joined Canadian Pacific Ltd.’s board in 1996 and became the railway’s chairman after the parent company split up. Cleghorn is chairman of SNC-Lavalin Group Inc., Canada’s No. 1 construction and engineering company.
Canadian Pacific shares rose 94 cents to C$58.64 yesterday in Toronto trading.