學門類別
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Turmoil At CSX: Hunter Harrison’s Medical Leave
內容大綱
In December 2017, two news releases were issued by CSX Corporation (CSX) concerning its chief executive officer (CEO), who had been appointed nine months earlier based on his record of drastically cutting operating expenses. The first release indicated that the CEO had taken a medical leave of absence due to unexpected complications from a recent illness and that an acting CEO had been appointed. The next day, CSX shares dropped 7.6 per cent, erasing almost $4 billion in market value. The second release, two days later, indicated that the CEO had died. Subsequent news reports questioned the board’s initial decision to hire him. The events raised issues related to unlocking shareholder value, the role of boards, and the impact of activist shareholders. Did the board do sufficient due diligence surrounding the CEO’s health when he was initially hired? Was the CEO’s vision and strategy more important than its implementation? Was the hiring of this CEO short-term thinking?
學習目標
This case can be taught in both the undergraduate and graduate level of corporate finance courses and in strategy courses to discuss corporate governance issues. After completion of this case, students will be able to<ul><li>assess the impact of firm-specific risks;</li><li>explain the role of activist investors;</li><li>summarize the role of boards;</li><li>evaluate turnaround opportunity and associated risks;</li><li>examine corporate governance and control issues; and</li><li>understand shareholder value enhancement and value drivers.</li><ul>