CSX Replaces CEO Amid Merger Pressure, Rival Railroad Deal

CSX railroad has replaced its CEO Joe Hinrichs with Steve Angel amid pressure from activist investor Ancora Holdings to pursue a merger or improve competitiveness against the proposed Union Pacific and Norfolk Southern transcontinental merger. Hinrichs, who joined in 2022, focused on labor relations but faced criticism for deteriorating operational performance, prompting his resignation. Steve Angel, with extensive leadership experience at Linde, Praxair, and General Electric's locomotive unit, assumes the role with expectations to enhance safety, service reliability, and shareholder value. Ancora Holdings expects Angel to proactively seek merger opportunities and restore operational excellence. CSX's recent performance was affected by major construction projects, including Hurricane Helene repairs and a Baltimore tunnel renovation, both now completed, with improved results anticipated in the upcoming quarter. The leadership change comes as CSX navigates competitive challenges and investor demands amid a shifting freight railroad landscape.