Union Pacific CEO to step down following hedge fund pressure

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Lance Fritz, the chief executive officer of US railway company Union Pacific, has announced he is to step down this year after hedge fund Soroban Capital Partners called for the firm to appoint new leaders, according to a report by Reuters.

The report cites a letter issued by Soroban on Sunday calling for Fritz to resign because he had lost the confidence of "shareholders, employees, customers, and regulators".

In the letter, Soroban founder Eric Manelblatt went on to say that the hedge fund had a "long-held view that current management is not capable of driving strong operating performance" and saw "a heightened risk of permanent damage to the franchise if left unaddressed."

Union Pacific responded by saying it expects to name a successor this year and that Fritz, who has spent 22 years at the company, will work with the board to find a new CEO.

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