Calgary Alberta - Canadian Pacific Railway Ltd. said Wednesday it had extended the contract of its chief executive, Hunter Harrison, by an additional year until 2017.
 
"When Hunter was brought in to lead the transformational change of this iconic company, the agreement was for four years, plus an option for an additional year," said Gary Colter, CP's recently-appointed chairman, in a statement.
 
"In seeing CP's rapid turnaround under Hunter's leadership, the Board was unanimous in wanting him to stay on until 2017 and we are extremely pleased he has accepted," he added.
 
Mr. Harrison, 69, joined CP in June 2012 after a lengthy proxy battle waged by Bill Ackman's Pershing Square Capital Management.
 
Mr. Harrison has since implemented a dramatic restructuring of the railroad's operation, and plans to deliver another five-year plan for the railway this fall at the company's investor day.
 
"I am honoured the board of directors asked me to remain in a leadership role for an extra year," Mr. Harrison said.
 
"Even though CP has experienced phenomenal success in a short period of time, there remains a lot to accomplish over the next three years to grow this company even further with our customers and shareholders."
 
His contract extension could, however, push about the appointment of his heir apparent to the CEO chair, Keith Creel, who Mr. Harrison recruited away from rival railroad Canadian National Railway Co. in early 2013.

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