TORONTO (Reuters) - Canadian Pacific Railway (CP.TO) board member Tony Ingram resigned on Friday, seven weeks after a bitter proxy battle led to the resignations of top executives at Canada’s second-largest railroad.
Ingram is the latest member of the old guard at the CP board to step down after the company’s management lost the proxy battle to activist shareholder William Ackman and his company, Pershing Square Capital Management.
Chief Executive Fred Green and Chairman John Cleghorn quit in May and board members Rick George and David Raisbeck resigned last month.
The latest resignation alters the balance of power on the board. The company has indicated it has no plans to replace Raisbeck, Ingram and George at this time, taking the size of the 16-member board down to 13.
Seven of the 13 members on the current board, including new CP Chairman Paul Haggis, were part of the Pershing slate. Five of Pershing’s seven nominees were named as independents with no direct ties to Pershing.
Ackman’s slate was elected at Canadian Pacific’s annual shareholder meeting on May 17. In addition to Cleghorn and Green, four other incumbent directors opted not stand for re-election on that day.
The company has named Hunter Harrison to replace Green as CP’s new president and CEO. Harrison, the former chief executive of rival railroad Canadian National Railway (CNR.TO), was Ackman’s preferred candidate.
Pershing, Canadian Pacific’s largest shareholder with a stake of about 14 percent, had campaigned since January to unseat Green, arguing that only new leadership could improve the railroad’s operating efficiency. CP has been measured the least efficient of North America’s major railways.
Shares of CP were down less than 1 percent at C$75.01 on Friday morning on the Toronto Stock Exchange.
Reporting by Euan Rocha; Editing by Janet Guttsman; and Peter Galloway