CSX names Steve Angel new CEO - update

[CSX Locomotive in Philadelphia]
Kyle Ortiz/iStock Editorial via Getty Images

UPDATED 14:00ET with statement from Ancora Holdings Group regarding the board's decision.

CSX Corp (NASDAQ:CSX [https://seekingalpha.com/symbol/CSX]) has tapped former Linde executive Steve Angel to lead the railroad operator as its new chief executive, replacing Joe Hinrichs, effective September 28. [https://seekingalpha.com/pr/20247050-csx-corp-announces-leadership-transition]

Hinrichs has left the company as president, CEO, and board member.

“The board conducted a very targeted process, and Steve was the clear choice to lead CSX,” said CSX Chairman John Zillmer, adding that under new leadership, the board is “laser-focused on advancing CSX’s strategic priorities and maximizing shareholder value.”

“We are confident Steve has the right skillset, expertise, and background to help us deliver our next phase of growth,” Zillmer said.

Hinrich’s tenure at the railroad came under pressure after Ancora Holdings and Toms Capital built positions in the company and initiated a campaign to pursue a merger or to replace Hinrichs.

In a letter to the CSX board in August, Ancora felt a merger with another railroad was the only way CSX could effectively compete with a combined Union Pacific (UNP [https://seekingalpha.com/symbol/UNP]) and Norfolk Southern (NSC [https://seekingalpha.com/symbol/NSC]) with BNSF or Canadian Pacific Kansas City Southern (CP [https://seekingalpha.com/symbol/CP]) the most likely candidates.

The hedge fund believes CSX is in the "difficult position of playing catch-up" by not establishing a "fruitful dialogue with Union Pacific in the first half of 2025 when public momentum was building for a transcontinental railroad," calling this misstep "the type of mistake from an inexperienced and insecure CEO."

_In a statement issued in the wake of Angel's appointment, Ancora applauded the board's decision to heed shareholder feedback and terminate Hinrichs. _

_"Although Steve Angel is not a railroader by trade, his M&A pedigree and value creation record indicate his appointment in an initial step in the right direction for CSX. We expect the board and Mr. Angel to be far more proacdtive when it comes to pursuing multiple opportunties to increase shareholder value and indentifying a willing partner to merge with," Ancora said. _

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