It’s payday for E. Hunter Harrison and the head of Canadian National Railways is certainly going to like the look of all those zeroes on the pay stub. Figures published in the Miami Herald paint a picture of what should make for a pretty happy scenario when payday comes around the Harrison household.
CN’s board of directors released figures announcing that Harrison’s salary increased in 2005 by over 50%. It’s compensation for a job apparently well done.
Harrison who as President and Chief Executive Officer, has overseen a CN business strategy which has resulted in the highest profit margins among North American railroads, watching the share value of the railroad jump 27% in the last year. In the four years that Harrison has been in charge of the railroad, the share value of CN stock has risen by 151%. Which makes it the darling of North American railroads.
With a combined package of cash, stock and stock options, Harrison pulled in $30.7 million including a $3.85 million bonus and something called a long term incentive plan payout that tops up at $17.3 million. Harrison made a further $22.5 million last year by exercising stock options, bringing the compensation package for 2005 to $53 million.
Quite a jump from his 2004 T4 slip totals of $14.1 million. Since Harrison took over the throttle at CN the railroad’s performance has been described as extraordinary, a term that might fit in nicely with the Chief’s compensation as well!
CN of course has a large presence in the Northwest; it’s the only railroad from Prince Rupert to Edmonton and promises to become a larger force once the container port is developed. It will make for a situation that should add further to the company’s bottom line and eventually the Harrison family cookie jar as well.
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