CSX shares tumble after CEO's medical leave - Metro US

CSX shares tumble after CEO’s medical leave

(Reuters) – CSX Corp’s shares tumbled on Friday in premarket trading after the No. 3 U.S. railroad said Chief Executive Hunter Harrison was taking medical leave for unexpected complications from a recent unspecified illness.

The leave comes amid the company’s controversial turnaround plan that has drawn customer criticism and scrutiny from regulators. [nL1N1OF03H]

“The importance of Harrison’s influence is immense,” Baird Equity Research Benjamin Hartford wrote in a note. Harrison’s health has been an ongoing concern among investors since his hiring, Hartford added.

A railroad legend, Harrison was hired as CSX’s CEO earlier this year. He previously turned around Canadian National and Canadian Pacific Railway Ltd .

James Foote, who was named CSX’s chief operating officer in late October, was appointed acting CEO.

CSX’s shares fell 10.3 percent to $51.42 in premarket trade. Up to Thursday’s close, they had risen 15.8 percent since March when Harrison took the helm.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Bernard Orr)

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