Hedge fund Soroban Capital Companions is pushing Union Pacific Corp. to switch Chief Govt Lance Fritz, arguing the railroad has underperformed on his watch, in accordance with a letter the fund despatched the railroad operator’s board Sunday.
Soroban is a longtime Union Pacific
investor, one of many firm’s greatest shareholders with a 1%-plus stake valued at about $1.6 billion, the letter mentioned.
Soroban argues that Union Pacific, the most important freight railroad operator within the U.S. with a market capitalization of almost $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 proportion foundation amongst so-called Class 1 freight railroad operators in that interval, in accordance with 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 may double in two years beneath Vena, who was within the working in 2021 to be CEO of Canadian Nationwide Railway Co., given his operational expertise within the business, mentioned the letter. Soroban made the letter public after The Wall Avenue Journal reported about it.
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