Ackman resigns from CP board

Canadian Pacific Railway announced changes to its board of directors, including the appointment of Jill Denham and William R. Fatt, and the resignation of activist investor Bill Ackman.    Billionaire activist investor Bill Ackman has resigned from the board of directors of Canadian Pacific Railway Ltd., effective immediately, according to a statement from the company.
   In addition, the Calgary-based Class I railroad appointed Jill Denham and William R. Fatt to the board.
   Ackman, founder and chief executive officer of investment fund Pershing Square Capital Management, joined the CP board in 2012 and won a proxy fight to install new management at the railroad, including current CEO E. Hunter Harrison, following Pershing Square’s acquisition of a 14.2 percent stake in the company.
   Harrison took over CP at a time when it was the worst performing Class I in North America and is widely credited for its dramatic turnaround. The company in July reached an agreement with Chief Operating Officer Keith Creel to serve as its next CEO following Harrison’s retirement on July 1, 2017.
   News of Ackman’s resignation comes after Pershing Square said last month it would sell its 9.8 million shares in CP, valued at an estimate of $1.44 billion.
   “Bill has been instrumental in CP’s turnaround and his leadership will be missed at the board level,” CP Board Chairman Andrew F. Reardon said of Ackman’s resignation. “His experience, energy, commitment and knowledge served the board well over the last four years and positions CP well for the future. With our focus on the future, we have added two new individuals who will bring a great deal of knowledge and passion to their roles.”
   “I have enjoyed working with Bill from day one,” added Harrison. “He saw an opportunity at CP, worked hard to bring me in to the fold, and delivered for shareholders and the board. Over the last four years, we have built a better CP and that model remains in place to continue to deliver not just for shareholders, but for customers and employees.”
   “I am proud to have served alongside so many passionate and diligent board members, and to have worked with management and the entire CP team on one of the most successful turnarounds in North American corporate history,” Ackman said. “I am confident that with CP’s superb management and strong governance, it will extend its remarkable track record into the future.”
   Denham joins the CP board after a career spanning several senior roles at the financial services provider CIBC, including vice chair of retail markets, managing director head of commercial banking and e-Commerce, and managing director head of CIBC’s overseas office in London. She currently serves as chair of the board at both Morneau Sheppell and Munich Reinsurance Canada, as well as a member of the boards of National Bank of Canada and Kinaxis Inc.
   The chairman and CEO of FRHI Hotels & Resorts from 1998 through July 2016, Fatt previously served as CFO of Canadian Pacific Ltd., the parent company of Canadian Pacific Railway.
   Fatt currently sits on the board of the Jim Pattison Group and the Bank of Nova Scotia, and previously served on the boards of Cadillac Fairview Corp., EnCana Corp., SunLife Financial Inc., and Enbridge Inc.
   “The diverse experience and expertise these individuals bring to the CP board will have an immediate constructive impact,” said Reardon. “They are committed to building on the successes and hard work of the past five years, which have positioned CP as an industry leader now and in the years to come.”