Union Pacific (UNP) has announced that chief executive officer (CEO) Lance Fritz is stepping down as the U.S. railroad faces growing pressure from hedge fund Soroban Capital Partners.
Soroban Capital has been pushing for internal changes at Union Pacific, and urged the railroad to replace Fritz in the CEO role, suggesting that current Chief Operating Officer (COO) Jim Vena take over day-to-day management of the company.
The hedge fund, which owns a $1.6 billion U.S. stake in Union Pacific, added that a change in leadership could generate about $18 U.S. of earnings per share by 2025.
Union Pacific said in a statement that its board of directors is now focusing on finding a qualified candidate to fill the CEO seat at the railroad.
Recently, Union Pacific reported a lower-than-expected fourth quarter profit due to delayed shipments amid labour shortages and a winter storm that crippled freight operations in the U.S.
Union Pacific’s stock has fallen 21% over the past year to trade at $194.02 U.S. per share.
