Jacksonville, FL – CSX Corporation, one of North America’s leading rail-based freight transportation companies, announced today the immediate departure of its Chief Executive Officer, James Miller, following sustained pressure from activist investors. The move comes after a period of intense scrutiny over the company’s operational performance and shareholder returns.
The company’s board of directors confirmed the leadership change in a statement released this morning. Evelyn Reed, a long-serving executive within the transportation sector, has been appointed interim CEO while a search for a permanent successor is underway. Miller had led CSX for five years.
Background of Activist Campaign
The ousting follows a high-profile campaign spearheaded by Sterling Capital Management, an investment firm that had acquired a significant stake in CSX. Sterling Capital had publicly criticized Miller’s leadership, citing concerns about lagging efficiency metrics, underperforming stock prices compared to peers, and what it described as an insufficient focus on core rail operations.
“Our goal has always been to ensure CSX operates at its full potential, delivering maximum value for all shareholders,” said Robert Thorne, managing partner at Sterling Capital Management, in a statement released shortly after the announcement. “Today’s decision represents a crucial step towards achieving that objective. We believe Ms. Reed possesses the strategic vision and operational expertise to guide CSX through this transitional period.”
Sterling Capital had been advocating for a series of operational overhauls, including a more aggressive implementation of Precision Scheduled Railroading (PSR) principles and a renewed emphasis on cost-cutting initiatives. The activist investor group had also pushed for representation on CSX’s board, escalating tensions in recent months.
The Road Ahead
The board expressed gratitude for Miller’s service, acknowledging his contributions to the company over his tenure. The statement indicated that the change was made in the best interest of the company’s future direction and its shareholders.
“The Board is committed to ensuring CSX continues to deliver safe, reliable, and efficient service to its customers while maximizing shareholder value,” said Michael Chen, Chairman of the CSX Board. “We are confident that Evelyn Reed’s deep industry experience and proven leadership will provide stability and strategic continuity during this important transition. The search for a permanent CEO will prioritize candidates with a strong track record of operational excellence and a clear vision for growth.”
Ms. Reed, who previously served as Chief Operating Officer for a major logistics firm before joining CSX’s executive team two years ago, immediately began her duties. Investors will now watch closely to see what strategic shifts, if any, the interim leadership will implement and how the company navigates the challenges of a competitive transportation landscape.
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