Union Pacific CEO steps down amid hedge fund pressure

Feb 27, 2023

Karah Rucker Anchor/Reporter

By Karah Rucker (Anchor/Reporter), Stacey Chamberlain (Producer/Editor)

The CEO of Union Pacific Railroad, Lance Fritz, announced Sunday that he will be stepping down from the position. A U.S. hedge fund, that owns about a $1.6 billion stake in the company, had called for the change in leadership earlier that day. The hedge fund cited the railroad company’s need for safer operations and faster transportation.

The stock market apparently agrees with the change at the top. Shares of Union Pacific surged nearly 10% in early trade Monday. That is on course for its biggest rise since March of 2020. It’s a bounce back that was needed. Union Pacific shares have dropped more than 25% over the past 10 months.

U.S. hedge fund Soroban Capital Partners called for Fritz to resign. It’s a showing of strong influence company-investors have in a company’s operations.

Union Pacific said a new CEO will be named sometime this year. As part of the search for new leadership, it is considering shareholder input in the process. Soroban Capital has already put up their candidate of choice, Jim Vena. He was the former chief operating officer at Union Pacific.

Tags: Railroads, train derailment, Union Pacific Railroad

KARAH RUCKER: CEO OF UNION PACIFIC RAILROAD – LANCE FRITZ – ANNOUNCED SUNDAY HE WILL BE STEPPING DOWN FROM THE POSITION.

A U.S. HEDGE FUND THAT OWNS ABOUT A 1.6 BILLION DOLLAR STAKE IN THE COMPANY HAD CALLED FOR THE CHANGE IN LEADERSHIP EARLIER THAT DAY – CITING THE RAILROAD COMPANY’S NEED FOR SAFER OPERATIONS AND FASTER TRANSPORTATION.

THE STOCK MARKET APPARENTLY AGREES WITH THE CHANGE AT THE TOP. SHARES OF UNION PACIFIC SURGED NEARLY TEN PERCENT IN EARLY TRADE TODAY – ON COURSE FOR ITS BIGGEST RISE SINCE MARCH OF 2020.

IT’S A BOUNCE BACK THAT WAS NEEDED – GIVEN UNION PACIFIC SHARES HAVE DROPPED MORE THAN 25 PERCENT OVER THE PAST TEN MONTHS.

U.S. HEDGE FUND “SOROBAN CAPITAL PARTNERS” CALLED FOR FRITZ TO RESIGN…A SHOWING OF STRONG INFLUENCE COMPANY-INVESTORS HAVE IN A COMPANY’S OPERATIONS.

UNION PACIFIC SAID A NEW CEO WILL BE NAMED SOMETIME THIS YEAR. AND AS PART OF THEIR SEARCH FOR NEW LEADERSHIP – IT IS CONSIDERING SHAREHOLDER INPUT IN THE PROCESS. WHICH SOROBAN CAPITAL HAS ALREADY PUT UP THEIR CANDIDATE OF CHOICE – JIM VENA, UNION PACIFIC’S FORMER CHIEF OPERATING OFFICER.