The Trustee for the DM&E, Richard Hamlin, has reported that Kevin Schieffer, President and CEO, has resigned effective immediately, to pursue other interests. Ed Terbell, the COO will serve as Acting CEO until the CP takeover.
I was actually more surprised by earlier reports that he planned to stay (after the merger)
Maybe he got a better offer from Mayo?[}:)]
I’m just sayin’ …
I didn’t see the word “resigned” in the press release. It only says he is “leaving” not under what terms…
LC
DM&E Railroad announces management change
Tuesday October 7, 5:00 pm ET
CALGARY, Oct. 7 Richard Hamlin, Trustee for CP’s acquisition of the DM&E today advised CP of changes to DM&E’s senior management team. Effective immediately, Kevin Schieffer, President and CEO, has left the company to pursue other opportunities.
Ed Terbell, Chief Operating Officer, and Kurt Feaster, Chief Financial Officer, will manage the day to day operations of the railway while the DM&E remains in trust.
“Messrs. Feaster and Terbell and the management team have been strong performers in managing the DM&E, and its subsidiaries: Iowa, Chicago & Eastern Railroad and Cedar American Rail Holdings, and will continue with their duties reporting directly to me pending CP assuming control of the railway,” said Mr. Hamlin.
On September 30, 2008 CP received regulatory approval from the US Surface Transportation Board to acquire control of the DM&E Railroad and its subsidiaries. The STB denied all requests for conditions other than those agreed to voluntarily by CP. Following a 30-day review period, CP expects to assume control of the DM&E October 30, 2008.
I would suspect he had 2 choices after the merger:
- Take an executive position in CP and keep working
- Take his money and run off to retirement
I suspect he did the ‘no-brainer’ and took off with his share of the profits from selling the DM&E/IC&E to CP. Darn, he beat me by 3 years to retirement!
Jim Bernier
I don’t read anything unusual into the announcement. I am sure that CP wanted Mr. Schieffer to stay until the STB made their decision. I also believe they offered to allow him to stay for the additional month until they could take control. There would be no place for Mr. Schieffer after CP takes control of the two railroads. When the CP takes control I would expect Mr. Brock Winter to be named President of both the DM&E and IC&E.
Why wouldn’t the railroads simply be merged into CP, which already has a President?
The DM&E and IC&E will be kept separate from the other subsidiaries because they have different and more favorable contracts with their employees than the Soo Line. Under current laws a US railroad cannot be merged into a foreign railroad, it can however be a wholly owned subsidiary. FRA regulations, and STB financial requirements mean that the US subsidiary has to keep a separate set of books. This is why the Soo Line Corp. owns all of CP’s US subsidiaries. Similarly Grand Trunk Corp owns all of CN’s US subsidiaries. Because of various meeting requirements Mr. Green isn’t the President of Soo Line Corp. He leaves that job to his senior deputy. It is possible with the much enlarged US operations that someone other than Brock Winters will be named as President of Soo Line Corp and its Railroad subsidiaries.
Two quick questions: Do we know what Mr. Schieffer is going to do now?
And, what about the rentable passenger excursion cars? Who owns them, Mr. S. or the railroad?
- a.s.
Maybe he is going to Disneyland.
Where are those cars based? I know there are at least 2 coaches sitting in the yard in Huron, SD. I’ll keep an eye on them.
There were 2 coaches painted in DM&E colors sitting in Huron, but they’re gone now. There are 2 others, still in Amtrak paint, in the yard.