Digital Assets Report

Newsletter

Like this article?

Sign up to our free newsletter

Soroban candidate appointed as Union Pacific CEO

Related Topics

Activist hedge fund firm Soroban Capital Partners has succeeded in its efforts to force a leadership change at US rail company Union Pacific (UP) after Jim Vena was announced as the company’s new Chief Executive officer, according to a report by Associated Press. 

Vena, a former Chief Operating Officer at UP, was Soroban’s favoured candidate for the role because of his past connection with the business and vast experience gained during a 40-year tenure at Canadian National. 

News of his appointment, which takes effect next month, saw the company’s stock jumping by more than 10% on Wednesday to $238.

Soroban, which holds a $1.6bn stake in Union Pacific, has been been pressuring for improvements at UP because of “disappointing results” which saw the company’s profit fall by nearly 15% in the last quarter to $1.57 billion, or $2.57 per share, as it hauled 2% less freight and dealt with rising costs. A year ago Union Pacific made $1.835 billion, or $2.93 per share.

The railroad’s 5% decline in revenue to $5.96 billion also disappointed with analysts expecting $6.09 billion.
 

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured