JACKSONVILLE, Fla. — New CEO Steve Angel introduced himself to CSX employees at a town hall meeting on Wednesday, two days after the railroad announced he had replaced Joe Hinrichs.
“First, I want to take a moment to recognize Joe Hinrichs,” Angel said. “ He led this company through some demanding times, and made real progress that has set us up with a good foundation for success. I appreciate his service and dedication to CSX.”
Angel, 70, said he was glad to be back in the railroad industry. He was CEO of industrial gas company Praxair from 2007 until its 2018 merger with Linde, and led the combined company through 2022, when he became chairman.
“My connection to this industry goes way back,” Angel said. “My career actually started at General Electric, working directly with locomotives and rail operations. That experience gave me a deep appreciation for railroading that has stuck with me. I used to love to ride the trains when I had that job.”
Angel, a marketing and sales executive during a 22-year career with GE Transportation, recalled riding a CSX freight that was put in sidings 11 times. “Clearly I was not on a priority train and was not a priority individual on a priority train,” he quipped.
CSX is one of the nation’s top-performing businesses, Angel said. “So my top priority in the coming weeks is simple: It’s to listen and learn from you. This is a practice that I have preached over many years,” he said, according to a town hall recording obtained by Trains.
He added: “I want to hear your perspectives and understand what’s working and where we can improve.”
Angel’s goal is for CSX to be the best-run railroad in North America. His priorities include operating the railroad safely, “growing the company properly,” and developing “a strong pipeline of talent within this organization.”
He also pledged to retain the One CSX corporate culture initiative. “We must maintain a respectful, collaborative, and inclusive work environment — one where everyone feels empowered to perform at their best,” Angel said. “And I’m fully committed to championing these values.”
Angel fielded employee questions about activist investors and railroad mergers. Activist investor Ancora Holdings, which began investing in CSX this year, in August called on the CSX board to replace Hinrichs due to its financial results and the railroad’s lack of a merger partner.
“If you know anything about the activist playbook, they show up when they see chinks in the armor,” Angel said.
“The best antidote to activism is performance,” Angel said. “If you perform, they don’t show up.”
CSX is a potential merger target in the wake of Union Pacific’s proposed acquisition of Norfolk Southern. Angel, who led Praxair through its merger with Linde, said there’s always uncertainty about whether a deal will go through.
“So the most important thing you could do, even with these discussions out there, is run the company to the best of your ability every day,” he said. “And that’s something that we can all do.”
Hinrichs had said that CSX was open to any and all ways to create value for shareholders, including a merger, but that the railroad preferred to focus on interline partnerships.
Angel’s stance was similar: He said he was open to a merger if it made sense for all of CSX’s stakeholders. “You always keep your options open, because you don’t really know,” he said. “And I think it behooves us as a company to understand what all the potential combinations and options could be.”
BNSF Railway, CSX’s logical merger partner, has said mergers are an unnecessary risk and that alliances are the way to go. BNSF’s parent, Berkshire Hathaway, has said it will not bid for CSX.
