June 5, 2017 / 3:03 PM / in a year

CSX shareholders OK $84 mln reimbursement to investor for new CEO -source

NEW YORK, June 5 (Reuters) - CSX Corp. shareholders have approved a proposal to reimburse an activist investor, Mantle Ridge Partners LP, $84 million for arranging the hiring of new Chief Executive Hunter Harrison, according to a person familiar with the matter.

Mantle Ridge had made the payment to extract Harrison early from his previous employer, Canadian Pacific Railway, where he had led a turnaround as CEO.

Mantle Ridge is one of CSX Corp’s biggest shareholders with a stake of 4.9 percent.

The proposal passed with around 93 percent of the shareholders voting in favor of the reimbursement, said the source, who was not allowed to be identified because the results are not yet final.

The resolution is non-binding, and it is now up to the board to make a final decision on whether the company should reimburse Mantle Ridge. (Reporting by Michael Flaherty; Editing by Bernadette Baum)

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