CP chief Harrison paid $17.6-million in 2014

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Canadian Pacific Railway Ltd. chief Hunter Harrison made $17.6-million in 2014, as the Calgary-based company posted record revenue and took shareholders along for the ride.

Total compensation for the Memphis-born railroader includes a bonus of $7.3-million, shares worth $3.6-million and stock options valued at $3.6-million, CP said in a regulatory filing on Monday.

Mr. Harrison's salary of $2.4-million was unchanged for 2014. This includes $1.5-million intended to replace the Canadian National Railway Co. pension payments he gave up when he joined CP in 2012. His total pay package for 2014 was $10.4-million more than 2013, when he received no share awards or stock options.

Mr. Harrison's paycheque exceeds the $9.3-million paid to Claude Mongeau, head of Montreal-based rival CN, a company that is twice the size of CP.

"Although Mr. Harrison's total compensation is much higher than his peers, the return to shareholders is equally impressive," the management circular stated.

Since Mr. Harrison took the top job after a battle for control of the company led by a U.S. hedge fund, annual revenue has risen by almost $1-billion to $6.6-billion and the share price has tripled. In 2014, shares rose by 40 per cent on the Toronto Stock Exchange.

Mr. Harrison and his drive for efficiency have been credited with changing CP's industry-worst operating ratio into one of the best. (An operating ratio is closely watched by investors and is a measure of expenses versus revenue.)

In 2014, Mr. Harrison's personal use of the company aircraft was valued at $467,000. He also received a housing allowance worth $71,000.

As of Dec. 31, 2014, Mr. Harrison held CP stock options worth $103-million and shares worth $11.6-million, the company said.

Mr. Harrison's chief operating officer and expected replacement, Keith Creel, was paid $7.8-million, including $3.1-million in share awards. The board rated his performance as "outstanding" and granted him a cash bonus worth $1.9-million.