JACKSONVILLE, Fla. — CSX today named former Linde CEO Steve Angel as its new chief executive, replacing Joe Hinrichs, who led the company for three years but attracted criticism this summer from an activist investor after the railroad’s financial and operational performance slipped.
“We are excited to welcome Steve as our new CEO. He is a visionary in creating long-term value and an expert in guiding companies through significant transformation. The Board conducted a very targeted process, and Steve was the clear choice to lead CSX,” CSX Chairman John Zillmer said in a statement. “The Board is laser-focused on advancing CSX’s strategic priorities and maximizing shareholder value, and we are confident Steve has the right skillset, expertise, and background to help us deliver our next phase of growth.”
Angel was CEO of Praxair from 2007-2018. After its merger with Linde in 2018, he became CEO of the combined company until 2022, when he was named chair. He plans to retire from Linde’s board in January 2026. He began his career at General Electric, where he held a variety of management positions for over 22 years, including at GE Transportation’s locomotive and rail unit.
“That experience sparked an interest in the railroad industry that has stayed with me ever since,” Angel said in a message to CSX employees this morning.
This is the second time in a row that CSX has selected a CEO who is both an industry outsider and a former customer of the railroad. Hinrichs was a former Ford and GM executive. Linde is among CSX’s customers.
“I’m truly honored to step into the role of CEO and am grateful for the trust that John and the Board of Directors have placed in me,” Angel said in a statement. “It’s a privilege to join a company with such a proud history and an incredibly dedicated team of over 23,000 employees who are working tirelessly to connect industries, communities, and economies. My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders. I look forward to working in partnership with the team and the Board as we continue to build on CSX’s strong momentum, advancing key initiatives aimed at driving long-term growth.”
A native of Winston-Salem, N.C., Angel holds a degree in civil engineering from North Carolina State University and an MBA from Loyola College in Baltimore.
Independent analyst Anthony B. Hatch said he was “stunned” that CSX named a new CEO. In a sign that investors welcomed the change at the top, CSX stock jumped 5% on Monday, a flat day for the market overall.
Hinrichs improved labor relations, Hatch said, and the railroad had just completed a pair of major projects — the Howard Street Tunnel clearance project and rebuild of the Blue Ridge Subdivision — ahead of schedule. CSX also was on pace to hit financial targets outlined in November as part of a three-year plan, Hatch says.
“I don’t get it. I don’t understand it,” Hatch says.
TD Cowen analyst Jason Seidl, in a note to clients, said that Angel “has a proven value creation and business integration track record” and may look to make changes to the CSX management team.
“We view this change in leadership, which caught some by surprise, as a way for CSX to clean the slate and focus on core operations and culture,” Seidl wrote. “We do not believe the transition has anything to do with the short-term operations, and CSX reiterated its volume guidance in the press release.”
In a sharply worded Aug. 6 letter, Ancora Holdings urged the CSX board to replace Hinrichs due to what it called “anemic stockholder returns,” “disastrous operational performance,” and “poor personnel selection” in the form of “a leadership team of junior varsity executives.”
The Cleveland-based activist investor also was critical of the railroad’s failure to pursue merger discussions despite public indications that Union Pacific was in talks with CSX rival Norfolk Southern.
In a statement today Ancora applauded the board’s decision to replace Hinrichs — and said the change in leadership “should be a cautionary tale for all corporate leaders who consider putting their own agenda ahead of shareholders’ best interests.”
“Although Steve Angel is not a railroader by trade, his M&A pedigree and value creation record indicate his appointment is an initial step in the right direction for CSX. We expect the Board and Mr. Angel to be far more proactive when it comes to pursuing multiple opportunities to increase shareholder value and identifying a willing partner to merge with,” Ancora said.
It was unclear what Class I railroad would be a merger partner for CSX. Berkshire Hathaway, which owns BNSF, has said it would not seek to acquire CSX. Canadian Pacific Kansas City has said mergers are not necessary and that it would not immediately participate in a round of consolidation. And Canadian National has said railroads should focus on interline partnerships.
Ancora also said that it expects Angel to “evaluate the full leadership team in order to restore the operational excellence that was a key tenet of CSX’s past success.”
In a statement, Zillmer thanked Hinrichs for his leadership. “His dedication to strengthening our operations and investing in our people and culture has laid a strong foundation as we enter this exciting next chapter,” he said.
Hinrichs said it was a privilege to lead the railroad.
“I am proud of the progress we have made in improving performance, strengthening customer relationships, and building a culture centered on safety and collaboration,” Hinrichs said in a statement. “I am grateful to our team for their hard work and commitment — they are among the best and brightest in the business. I leave with pride for all that we have accomplished together and have full confidence that under Steve and the Board’s leadership, the Company will continue to grow stronger, delivering lasting value to all our stakeholders.”
From the article:
CSX Chairman John Zillmer said in a statement. “The Board is laser-focused on advancing CSX’s strategic priorities and maximizing shareholder value, […]”
Which, of course, means customers be damned, let’s make the fatasses fatter!
Reregulation may happen. However, it won’t save a Board of Directors from making inopportune leadership changes such as this one.
What was the CSX Board thinking. Ancora only owns 2 million out CSX’s 1.86 billion shares. Why on earth would they listen to an owner of such a middling amount of stock?
Devastated to hear that Hinrichs is out, one of the best CEO’s in the industry. As long as hedge fund investors get involved, I do not see a future for the Industry. I see reregulation on the horizon. I have not seen any business prosper when a hedge fund gets involved in a significant way. You did a great job Joe Hinrichs under some very difficult circumstances the past year. The best to you on your future pursuits. you will do well at whatever you pursue.
This announcement fails the BS sniff test.
I’ve lost all hope for common sense in corporate board rooms. Particularly the railroads’ board rooms. Howard Street Tunnel’s planned closure and loss of the former Clinchfield in very UNplanned fashion dealt CSX a very unexpected – yet temporary – operational crisis. Ancora know about 0 percent of what they think they know about railroading, made worse by the vindictive and bitter “consulting” of one Jamie Boychuk. And the CSX BoD just let him get his revenge and Ancora get their extremely short-sighted win. Great. This once-proud and dignified industry continues to suffer under this senseless, harsh and greedy environment.
The only priority is quarterly returns. Customers and employees be damned. The solution is the same as it was a century and a half ago: regulation. In the current environment, there is no hope of that.