Union Pacific CEO to step down as hedge fund presses for change, article with image

Feb 26 (Reuters) – U.S. railroad Union Pacific (UNP.N) on Sunday said it expects to name a successor to assume the position of chief executive officer replacing Lance Fritz in 2023.

“Union Pacific has been my home for 22 years and I am confident that now is the right time for Union Pacific’s next leader to take the helm. I look forward to working with the Board as we identify our next CEO to lead the Company into the future,” Fritz said in a statement.

The announcement comes after U.S. hedge fund Soroban Capital Partners in a letter on Sunday called for Fritz to be replaced.

“Unlike typical shareholder engagements which come with numerous demands, Soroban has only one ask – install new leadership who can get the trains to operate safely and on time,” the letter said.

Union Pacific in a statement said as part of the board’s succession planning process it has considered shareholder input and will continue to do so, adding it has been actively engaging with Soroban Capital since 2017.

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Reporting by Rhea Binoy and Kanjyik Ghosh in Bengaluru
Editing by Chris Reese

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