Welcome!

News Feed Item

Morningstar Names E. Hunter Harrison of Canadian Pacific Railway as its 2013 CEO of the Year

CHICAGO, Jan. 15, 2014 /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced its 2013 CEO of the Year, E. Hunter Harrison of Canadian Pacific. Morningstar annually recognizes a chief executive who exhibits exemplary corporate stewardship, demonstrates independent thinking, creates lasting value for shareholders, and has put his or her stamp on an industry. Tune into CNBC's "Nightly Business Report" this evening to watch an interview with Harrison.

The two other nominees for Morningstar's 2013 CEO of the Year award were Darren Gee of Peyto Exploration & Development Corp. and John Martin of Gilead Science Inc.

"This year's nominees have demonstrated sound stewardship practices on behalf of their firms' shareholders," Heather Brilliant, head of global equity and corporate credit research for Morningstar, said. "We selected Mr. Harrison as this year's winner because Canadian Pacific has produced outstanding results since his appointment as CEO in June 2012. Harrison has now transformed three railroads in his career, and along the way forged a new standard of profitability in a two-centuries-old industry.

"It would be difficult to identify another company leader who has revolutionized operations within a mature, asset-intensive industry several times over. Earlier in his career, Harrison steered both the Canadian National and Illinois Central railways to industry-leading margins. His actions in 2013 improved operations for the benefit of Canadian Pacific employees, customers, and shareholders, and positioned the firm for future success."

Harrison has been a powerful catalyst for change at Canadian Pacific:

  • Following his appointment, Harrison streamlined leadership, operating practices, and assets, both human and steel. He replaced nearly all senior leadership, decreased the work force by 27 percent, and reduced company-controlled railcars and locomotives by 35 percent and 43 percent, respectively.
  • He relocated the firm's headquarters from downtown Calgary, Alberta to the firm's Ogden Yard, a move that cut costs but also keeps Canadian Pacific's focus on freight operations front and center for corporate employees.
  • The firm is on track to produce a nearly 30 percent operating margin in 2013 and targets a 35 percent margin in 2014, a figure nearly double 2011's level. Shares have soared to CAD 160.65 as of Dec. 31, 2013, far above the CAD 70 price in January 2012 when public correspondence between the firm's board and activist investor Pershing Square mentioned Harrison's name as a potential new CEO. In 2013, Canadian Pacific's 61 percent total return dwarfed the returns of the S&P 500 (32 percent) and the Dow Jones Transportation Index (41 percent).

"Remarkably, Harrison has made these changes to Canadian Pacific's business without harming customer service," Brilliant added. "The firm's higher margins and greater return on invested capital will generate additional free cash flow, which can be invested in a virtuous cycle to enhance safety, operations, and customer service, thereby driving down costs even further. We believe this trend will enhance Canadian Pacific's cost advantage—a key source of its Wide 'Economic Moat' rating. The firm's wide economic moat is also based on efficient scale; Canadian Pacific has a difficult-to-replicate network of track and assets and operates in an industry effectively served by existing participants."

Morningstar's Economic Moat™ rating is a proprietary measure of a company's sustainable competitive advantages, and Morningstar assigns each company a rating of Wide, Narrow, or None. A company can obtain an economic moat through five primary sources: Efficient Scale (a limited market where there is little incentive for new entrants), Network Effect (a situation where incremental customers add value for existing customers), Cost Advantage (allowing a company a greater profit margin and/or the ability to steal market share), Intangible Assets (e.g. patents or strong brands), and Switching Costs (making it costly in time and/or money for customers to switch providers).

Morningstar introduced its CEO of the Year award in January 2000. Winners are chosen by senior members of Morningstar's equity analyst team based on their in-depth independent research.

For Morningstar's commentary about Harrison, go to: http://www.morningstar.com/goto/ceo2013.  For the complete list of past winners, go to: http://corporate.morningstar.com/CEOhalloffame.

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 437,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has approximately $176 billion in assets under advisement or management as of Sept. 30, 2013. The company has operations in 27 countries.

The references to Canadian Pacific in this press release should not be considered a solicitation by Morningstar to buy shares of that company.

©2014 Morningstar, Inc. All Rights Reserved.

MORN-C

Media Contact:
Carling Spelhaug, +1 312-696-6150 or [email protected]

SOURCE Morningstar, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...