Adopt the role of a consultant engaged by the Board of Directors of CN and critically evaluate the compensation system for Named Executive Officers as described in the company’s 2018 Management Information Circular.
“CN is engaged in the rail and related transportation business. CN’s network of
approximately 20,000 route miles of track spans Canada and mid-America, uniquely
connecting three coasts: the Atlantic, the Pacific and the Gulf of Mexico, and serving the
cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New
Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton,
Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior
(Wisconsin), and Jackson (Mississippi), with connections to all points in North America.
CN’s extensive network and efficient connections to all Class I railroads provide CN
customers access to Canada, the U.S. and Mexico. A true backbone of the economy, CN
handles over $250 billion worth of goods annually and carries over 300 million tons of
cargo, serving exporters, importers, retailers, farmers and manufacturers.
CN’s freight revenues are derived from seven commodity groups representing a diversified
and balanced portfolio of goods transported between a wide range of origins and
destinations. This product and geographic diversity better positions the Company to face
economic fluctuations and enhances its potential for growth opportunities. In 2017, no
individual commodity group accounted for more than 25% of total revenues. From a
geographic standpoint, 16% of revenues relate to U.S. domestic traffic, 33% transborder
traffic, 17% Canadian domestic traffic and 34% overseas traffic. The Company is the
originating carrier for over 85%, and the originating and terminating carrier for over 65%,
of traffic moving along its network, which allows it both to capitalize on service advantages
and build on opportunities to efficiently use assets.
Revenues generated by the Company during the year are influenced by seasonal weather
conditions, general economic conditions, cyclical demand for rail transportation, and
competitive forces in the transportation marketplace. Operating expenses reflect the impact
of freight volumes, seasonal weather conditions, labor costs, fuel prices, and the
Company’s productivity initiatives.”
REQUIRED:
Adopt the role of a consultant engaged by the Board of Directors of CN and critically
evaluate the compensation system for Named Executive Officers as described in the
company’s 2018 Management Information Circular.
