UNP earned about $11.20 / share in 2022 (this past year). Activist investors feel UNP could earn $18 / share in 2025 with a new CEO.
Union Pacific Corp. said Sunday it plans to name a new chief executive this year, hours after a major shareholder publicly urged the railroad company’s board to oust Lance Fritz from the job.
Soroban Capital Partners, a New York hedge fund managing about $10 billion, on Sunday disclosed a letter it wrote to Union Pacific directors pushing for the change, arguing that the company has underperformed on Mr. Fritz’s watch.
Union Pacific said in a statement that its board is focused on finding “highly-qualified candidates both within the industry and adjacent industries.” Among its considerations are a track record of success in safety and operational matters, the company said, crediting Mr. Fritz with achieving financial growth in difficult conditions.
It's not uncommon for shares to rise in value -- at least briefly -- on such news, so something to watch, Monday, February 27, 2023.
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