Rail CEOs – Spend Time on the Railroad

By David C. Lester, Editor-in-Chief

When I began studying railroads, I quickly became a fan of Southern Railway and its then-president, W. Graham Claytor, Jr. It didn’t take long to realize that Claytor spent considerable time on the road riding freight trains, visiting crews, and meeting employees at various facilities around the system. While Claytor was a self-avowed rail enthusiast, the goal of his time on the railroad was much more than pursuing his passion. Claytor knew that e ective CEOs, particularly rail CEOs, must be visible and known to as many of the hard-working people in the eld as possible. e CEO must appreciate and understand the eld jobs, not simply from a textbook or job description. It’s hard for a job description to convey the feeling of blowing snow and wind in your face while switching a plant. You must be out there. You must feel it.

While one might expect this attitude from a former operating railroader who has been there and done it, Claytor’s background was law. Indeed, he joined the company as Vice President – Law several years before he became CEO. e time he spent on railroads before he came to Southern was likely as a passenger on a passenger train. Yet, he appreciated and respected the job done by railroaders in the eld, and he made a point of letting them know it.

I don’t know how much time the current rail CEOs spend in the eld. For all I know, Keith Creel, Lance Fritz, Katie Farmer, and Tracy Robinson are in the eld frequently. I hope they are. I do know that the two CEOs missing from this list spend a lot of time in the eld meeting and talking with employees – Alan Shaw of Norfolk Southern and Joe Hinrichs of CSX. Both chief executives seem to naturally know that it’s essential to be on the ground frequently with those who run the railroad daily.

Shaw has, understandably, been especially visible since the East Palestine derailment. However, he began spending time with employees in the eld as soon as he became CEO on May 1, 2022. Moreover, Shaw spent time in an operations position with NS earlier in his tenure, giving him rst-hand experience with work in the eld. He has continued to visit places around the system even a er East Palestine, which speaks to his commitment to the railroad’s culture and employees. In my view, the time Shaw has spent in and working on East Palestine has been very e ective, and he is living up to his commitment to “make it right.” Did NS get a slow start out of the gate in addressing what happened in Ohio? Perhaps. Not to take anything away from the challenges to and su ering of the residents of East Palestine, I believe NS has more than made up for a slow start with what it has done and promised to do. I think it’s fair to say that while other CEOs would do what Shaw has done regarding remediation in Ohio, it’s fortunate for the rail industry and NS that Shaw was in the chair when this happened. Having the wrong CEO or the wrong response to this tragedy would have spelled disaster for the company and the industry.

Joe Hinrichs’s time on the ground has also been well spent. As the former president of Ford Motor Company’s automotive division, he understands people’s importance. Despite the in ux of robotics into automobile manufacturing facilities, people are as important in that industry as ever. Hinrichs brought this understanding of people to CSX and appears to have begun mending the company’s employee relations that were su ering badly from the brief tenure of Hunter Harrison and precision scheduled railroading run amuck.

Hinrichs has also held events bringing employees and their families together, promoting goodwill and a sense that the company cares about workers and their loved ones. While I’m sure other railroads do this to some extent, it seems this has been a priority for Hinrichs since he became CEO.

Future CEOs should study the careers of people like Claytor, Shaw, and Hinrichs. Again, I don’t know how much time the other “big six” CEOs spend in the eld. Given the recent issues with labormanagement agreements, customer service concerns, and other challenges, I imagine they spend a respectable amount. To repeat what I said earlier, CEOs need to be out there. ey need to feel it. ey need to show their employees that they give a damn.