Canadian National Railway Company (CNI Quick QuoteCNI - Free Report) announced that its Chief Executive Officer (CEO) and President, Claude Mongeau, has resigned and will relinquish office by the end of Jun 2016. Mongeau will be succeeded by Luc Jobin, who has been serving as the Chief Financial Office (CFO) of the company since 2009. Jobin will be elevated to the top spot on Jul 1.

Mongeau cited his failing health as the reason behind his resignation. He returned from medical leave in the beginning of this year but his current condition as a laryngectomee has made it difficult for him to meet the needs of his challenging job.

Mongeau joined the company 22 years ago and has remained at its helm for the past six and a half years. Mongeau played a crucial role in the company’s transformation and success from its initial public offering (IPO) in 1995 to it becoming a leading North American Railroad company. Robert Pace, the Chairman of Canadian National Railway, mentioned that Mongeau’s efforts in supply chain collaboration and customer service will support the company’s performance going forward.

Canadian National Railway is renowned in the transport sector owing to its unique three-coast network, diversified business franchisee and a strong workforce of 23,000 persons. Notably, this Zacks Rank #3 (Hold) company beat the Zacks Consensus Estimate in the first quarter of 2016 with earnings of C$1 per share ($0.73).

Stocks to Consider

Some better-ranked stocks in the broader transportation sector include Air France – KLM SA (AFLYY Quick QuoteAFLYY - Free Report) and SkyWest Inc. (SKYW Quick QuoteSKYW - Free Report) with a Zacks Rank #1 (Strong Buy) as well as International Consolidated Airlines Group, S.A. (ICAGY Quick QuoteICAGY - Free Report) with a Zacks Rank #2 (Buy).

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