CSX Considers Promoting Interim Finance Chief -- Update
July 17 2019 - 3:28PM
Dow Jones News
By Micah Maidenberg and Nina Trentmann
CSX Corp. is considering making its interim finance chief
permanent, the company's chief executive said.
In May, the freight railroad said its former chief financial
officer, Frank Lonegro, departed from the company. He had worked at
CSX for 19 years and took over as finance chief in 2015.
CSX appointed Kevin Boone, who had been the company's top
investor-relations executive, to the role on an interim basis and
launched an external search.
Mr. Boone is in the running to take over the finance job at CSX
on a permanent basis, CEO Jim Foote said on a conference call
Tuesday, praising his work.
"We all appreciate that he was here and his skill set and his
ability to step right in and pick up where Frank left off," Mr.
Foote said. "We're doing an external search to see if we could find
the right person to fill this role, and as part of that process,
Kevin is going to be considered."
Interim executives are usually considered finalists for the
permanent job, and they often have an advantage over external
candidates, said Mickey Matthews, international chairman of
executive recruitment firm Stanton Chase.
"This is a good chance for him [Mr. Boone] to present himself
and showcase his skills," Mr. Matthews said.
It isn't unusual for companies to appoint an interim CFO while
also launching an external search, he said. That way, the company
makes sure it scouts the market for the best available talent while
also lining up a potential internal successor should the search
fail to deliver the right candidate.
A company's decision to conduct an external search also could be
interpreted as a sign that an interim doesn't tick all the boxes
for the top job, said Mr. Matthews.
In about 15% to 20% of cases in which Stanton Chase searches for
an executive, the company has an interim CFO in place, Mr. Matthews
said. Only one-third of those tend to secure the permanent role, he
said.
Mr. Foote said Mr. Boone is "doing a great job."
CSX, based in Jacksonville, Fla., has faced changes in its
executive suite over the last couple of years. In 2017, the company
replaced several top executives and brought in Mr. Foote as its top
operations executive.
He took over the CEO role following the death of the company's
former CEO, Hunter Harrison, late in 2017.
More recently, Mr. Lonegro moved on and the company hired
Farrukh Bezar as its chief strategy officer.
Write to Micah Maidenberg at micah.maidenberg@wsj.com and Nina
Trentmann at nina.trentmann@wsj.com
(END) Dow Jones Newswires
July 17, 2019 15:13 ET (19:13 GMT)
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