Hedge fund Soroban Capital Partners is pushing Union Pacific Corp. to exchange Chief Executive Lance Fritz, arguing the railroad has underperformed on his watch, in response to a letter the fund despatched the railroad operator’s board Sunday.
Soroban is a longtime Union Pacific
UNP,
investor, one of many firm’s greatest shareholders with a 1%-plus stake valued at about $1.6 billion, the letter stated.
Soroban argues that Union Pacific, the biggest freight railroad operator within the U.S. with a market capitalization of practically $120 billion, has ranked worst in key working metrics together with security, quantity development and complete shareholder return throughout Fritz’s eight-year tenure regardless of the power of its railroad community. The Omaha, Neb., railroad’s returns to shareholders, together with dividends, are the worst on a share foundation amongst so-called Class 1 freight railroad operators in that interval, in response to FactSet.
The $10 billion hedge fund is pushing for railroad veteran Jim Vena, Union Pacific’s chief working officer from 2019 to 2020, to take the highest put up as a substitute. Soroban believes the corporate’s inventory value might double in two years below Vena, who was within the working in 2021 to be CEO of Canadian National Railway Co., given his operational expertise within the trade, stated the letter. Soroban made the letter public after The Wall Street Journal reported about it.
An expanded model of this report seems on WSJ.com.
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Source web site: www.marketwatch.com
