CSX railroad replaces CEO after investor pressure and poor performance
as Union Pacific merger looms
[September 30, 2025] By
JOSH FUNK
CSX railroad announced Monday that it had replaced its CEO less than two
months after an investment fund urged it to either find another railroad
to merge with to better compete with the proposed transcontinental Union
Pacific railroad or fire outgoing CEO Joe Hinrichs.
The outgoing CEO, who came to the railroad in 2022 after a long career
with Ford, focused on repairing CSX's relationship with its workers and
labor unions and unifying the team after a bitter contract fight. But
Ancora Holdings, which helped spur major changes at Norfolk Southern,
said CSX's operating performance deteriorated significantly under
Hinrichs' leadership. Hinrichs resigned to clear the way for Steve Angel
to become CEO effective Sunday.
Angel, 70, also comes from outside the rail industry although earlier in
his career he oversaw GE's locomotive building unit, so he does have
that experience. CSX said he has 45 years experience leading large
public companies, including most recently as CEO of Linde and Praxair
that provide industrial gasses to other companies.
“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 railroad's board Chairman John Zillmer
said.
The pressure is on CSX
CSX has been under pressure from Ancora and other investors since Union
Pacific announced its $85 billion deal to acquire Norfolk Southern,
which is CSX's rival in the eastern United States. But both BNSF and
CPKC railroads said they aren't interested in a merger right now.
Ancora said CSX has delivered disappointing shareholder returns and poor
financial performance during Hinrichs' tenure. But over the past year,
CSX was working on two major construction projects — repairs from
Hurricane Helene and a major tunnel renovation in Baltimore — that
disrupted the railroad. Both those projects were just completed this
month, so CSX's performance was expected to improve in the fourth
quarter.
Even though he's not a railroader, Ancora praised Angel's hiring because
of his experience with mergers and acquisitions. The top executives at
Ancora, Frederick D. DiSanto and James Chadwick, said in their statement
that they believe Hinrichs “botched the opportunity” to merge with
another railroad and may have even fought the idea. They said Angel is
expected to be more aggressive at pursuing a deal and that he will
re-evaluate the railroad's leadership team.
“With President Donald Trump and other policymakers recently expressing
enthusiasm for the benefits of a transcontinental railroad, CSX and
other Class I railroads have no choice but to embrace the industry’s new
realities,” the Ancora executives said. “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.”
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A CSX freight pulls through Ohiopyle, Pa., on Tuesday, Aug. 19,
2025. (AP Photo/Gene J. Puskar, file)
 New CEO promises improvements
Angel promised to make improvements at the Jacksonville,
Florida-based company, which is one of the six largest railroads in
North America.
“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,” Angel said in a statement.
Angel will earn a $1.5 million salary, but he will also be eligible
for a performance stock grant targeted at $13.5 million next year if
CSX hits certain performance goals. He will also receive a separate
$10 million stock grant that will vest after three years based on
performance. Angel will also be eligible to collect retirement from
the railroad after three years. CSX also outlined a separate
agreement that would pay Angel triple his salary and target bonus in
the event of another railroad taking control of CSX.
Ancora said it continues to buy more CSX shares and hopes to develop
a better relationship with the railroad. Ancora holds three seats on
Norfolk Southern's board after running a proxy campaign there to
oust the previous CEO at that railroad, so the investment fund had
input on the Union Pacific-Norfolk Southern merger.
New CEO may provide an edge
CFRA Research analyst Emily Nasseff Mitsch said Angel’s experience
overseeing the complex merger of Linde and Praxair should give CSX a
strategic edge in any potential rail consolidation.
Most observers believe CSX and BNSF will be at a disadvantage if the
Union Pacific-Norfolk Southern merger gets approved. That
transcontinental railroad will be able to shave more than a day off
delivery times because it won’t have to hand off shipments between
railroads in the middle of the country. So far, those railroads have
said they believe they could achieve most of the benefits of a
merger through cooperative agreements.
“Angel brings exceptional credentials from 22 years at GE’s
locomotive operations and demonstrated value creation, generating
over 200% returns at Linde and Praxair while executing major
industrial mergers. We believe this positions CSX for its next
growth phase,” Mitsch said.
CSX shares gained more than 5% Monday after the new CEO was
announced.
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