Board Expects to Name Successor to Assume Position in 2023
OMAHA,
Neb., Feb. 26, 2023 /PRNewswire/ -- Union
Pacific Corporation (NYSE: UNP) today provided an update on the
status and timing of the Board of Director's active leadership
succession planning process.
Since assuming the CEO role in February
2015, Lance Fritz has
overseen a period of growth, innovation and value creation, and
transformed the Company's operating plan to improve asset
efficiency. Under his leadership, since 2017, the Company has
achieved a 52% increase in net income, a 27% increase in operating
income and a 3.7 point increase in return on invested capital. Mr.
Fritz guided the Company to achieve this financial growth despite
the volatile operating environment spurred by the COVID-19
pandemic, global supply chain disruption, labor negotiations and
service and labor challenges, while instilling an inclusive and
accountable organization with an industry-leading sustainability
program.
Following discussions between the Board and Mr. Fritz regarding
the path for identifying Union Pacific's next CEO, in March 2022 the Board engaged a leading outside
consultant and subsequently formed a task force of directors
composed of each of the Board committee chairs in November 2022. The Board is seeking a CEO with a
strong track record of success and expertise across safety,
operational excellence, enhancing and driving customer service,
innovation, employee culture and sustainability. The Board is
focusing the process on highly-qualified candidates both within the
industry and adjacent industries to identify a CEO capable of
leading the Company for a long-term tenure. The Board expects to
name a successor who will assume the position in 2023.
"The Board is grateful to Lance for his unwavering leadership,
dedication and oversight in driving our Company forward over the
last eight years as CEO. Lance created an environment that has
allowed Union Pacific to make a measurable impact with our
customers, communities and employees alike," said Michael McCarthy, Lead Independent Director of
the Board. "He has capably led our company during a time of
significant challenge and change, positioning Union Pacific to
deliver long-term sustainable value for shareholders and customers.
We are immensely grateful to have Lance's continuing leadership and
support and know he will ensure a smooth transition."
"It is my honor and privilege to serve this great company. I am
proud of our team and all we have built together," said
Lance Fritz, Union Pacific Chairman,
President and Chief Executive Officer. "I've always said that our
fundamentals for long-term success are powered by our people – our
best-in-class employees and the passion they have for our customers
and communities. Union Pacific has embarked on a transformative
journey that will result in stronger, more consistent service for
our customers, with enhanced earnings growth and value creation for
our shareholders. 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."
As part of the Board's succession planning process, it has
considered shareholder input and will continue to do so. The Board
has been actively engaging with Soroban Capital Partners
("Soroban") since 2017. In recent conversations, Soroban indicated
it intended to move discussions to a public level. The Board
decided it is in the best interests of all shareholders to provide
a public update on its ongoing succession process and expected
timing.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers
the goods families and businesses use every day with safe, reliable
and efficient service. Operating in 23 western states, the company
connects its customers and communities to the global economy.
Trains are the most environmentally responsible way to move
freight, helping Union Pacific protect future generations. More
information about Union Pacific is available at www.up.com.
www.up.com
www.facebook.com/unionpacific
www.twitter.com/unionpacific
This news release and related materials contain statements
about the Company's future that are not statements of historical
fact, including specifically the statements regarding the Company's
expectations with respect to economic conditions and demand levels,
its ability to improve network performance (including those in
response to increased traffic), its results of operations, and
potential impacts of the COVID-19 pandemic and the Russian-Ukraine
conflict. These statements are, or will be, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements also generally include, without
limitation, information, or statements regarding: projections,
predictions, expectations, estimates, or forecasts as to the
Company's and its subsidiaries' business, financial, and
operational results, and future economic performance; and
management's beliefs, expectations, goals, and objectives and other
similar expressions concerning matters that are not historical
facts.
Forward-looking statements should not be read as a guarantee
of future performance or results, and will not necessarily be
accurate indications of the times that, or by which, such
performance or results will be achieved. Forward-looking
information, including expectations regarding operational and
financial improvements and the Company's future performance or
results are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the statement. Important factors, including risk
factors, could affect the Company's and its subsidiaries' future
results and could cause those results or other outcomes to differ
materially from those expressed or implied in the forward-looking
statements. Information regarding risk factors and other cautionary
information are available in the Company's Annual Report on Form
10-K for 2022, which was filed with the SEC on February 10, 2023. The Company updates
information regarding risk factors if circumstances require such
updates in its periodic reports on Form 10-Q and its subsequent
Annual Reports on Form 10-K (or such other reports that may be
filed with the SEC).
Forward-looking statements speak only as of, and are based
only upon information available on, the date the statements were
made. The Company assumes no obligation to update forward-looking
information to reflect actual results, changes in assumptions, or
changes in other factors affecting forward-looking information. If
the Company does update one or more forward-looking statements, no
inference should be drawn that the Company will make additional
updates with respect thereto or with respect to other
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for convenience and, therefore, information on or available through
the website is not, and should not be deemed to be, incorporated by
reference herein.
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SOURCE Union Pacific Corporation