CSX shareholders vote to pay $84M US related to hiring of CEO Hunter Harrison

CSX says its shareholders have approved an $84 million US payment related to the hiring of CEO E. Hunter Harrison.

Harrison was hired as CEO of the railroad company three months ago and had said he would resign if the payment wasn't approved.

Jacksonville, Fla.,-based CSX says 93 per cent of the votes Monday were in favour of making the payment.

Of the $84 million US, $29 million US will go to Harrison for compensation he earned at his previous employer, Canadian Pacific Railway Ltd., that he had to forfeit in order to join CSX.

The remaining $55 million US will go to activist investor and CSX shareholder Mantle Ridge to reimburse it for payments it made to Harrison to get him to come to CSX.