CALGARY - Canadian Pacific Kansas City (TSX: NYSE:CP) (NYSE: CP), also known as CPKC, has announced the departure of John Orr, its Executive Vice President and Chief Transformation Officer, who will now serve as the Chief Operating Officer at competitor Norfolk Southern (NYSE:NSC). The move comes with an agreement between the two companies following the waiver of Mr. Orr's non-competition clause.
The transition involves a one-time waiver fee of US$25 million from Norfolk Southern to CPKC, along with certain operational and commercial considerations concerning the Meridian Speedway and the Meridian Terminal. These considerations are expected to enhance competition and add value in light of CPKC's proposed acquisition of the Meridian & Bigbee Railroad (MNBR).
John Orr has been part of CPKC since April 14, 2023, and has been credited with building a strong team for the company's Mexico operations. His previous role will not be replaced; instead, his responsibilities will be absorbed into CPKC's existing operational structure.
The arrangement between CPKC and Norfolk Southern also includes temporary no-hire and non-solicitation restrictions for a select group of CPKC employees. Despite his new position, Mr. Orr will continue to adhere to his non-solicitation restrictions.
This executive change is part of CPKC's broader strategy, which includes the anticipated benefits of the agreement with Norfolk Southern and the MNBR acquisition. However, the company cautions that forward-looking statements involve risks and uncertainties, and actual results may differ from current projections.
CPKC, headquartered in Calgary, Alberta, is a transnational railway connecting Canada, the United States, and Mexico, and employs approximately 20,000 individuals. The company emphasizes its role in providing extensive rail service and network reach across North America. This news is based on a press release statement from CPKC.
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