BUSINESS

CN suspends pension payments to ex-CEO Harrison; claims breach of obligations

01/23/2012 03:56 EST | Updated 03/24/2012 05:12 EDT
MONTREAL - Canadian National Railways (TSX:CNR) is suspending pension payments to its retired president and CEO, Hunter Harrison.

In announcing the move, CN accuses Harrison of breaching or intending to breach what it says are his contractual obligations to the company.

Harrison has been at the centre of moves by a New York-based activist investor, who wants him to replace Fred Green as president and CEO of CN rival Canadian Pacific Railways (TSX:CP).

Harrison has indicated in interviews he would be interested in the job under the right circumstances.

CN, saying it has "high expectations for the conduct and loyalty" of its executive officers and employees, says it decided to suspend both pension and restricted share unit payments to Harrison in order to protect the interests of its shareholders.