Union Pacific seeks new CEO

Feb. 27 (UPI) -- Union Pacific, one of the country's leading freight rail companies, announced Sunday it is looking for a new CEO to replace Lance Fritz.

The company's board of directors has been working with Fritz and an outside consulting firm since March 2022 to develop a task force that would identify potential candidates.

"The board is seeking a CEO with a strong track record of success and expertise across safety, operational excellence, enhancing and driving customer service, innovation, employee culture and sustainability," Union Pacific said in a statement.

Eric Mandelblatt, managing partner at Soroban Capital Partners, which owns a $1.6 billion stake in the company, urged the board to replace Fritz in a letter Sunday, saying the company has "significantly failed to reach its potential under Mr. Fritz's leadership."

The announcement comes a week after Union Pacific said last week that it has reached an agreement with two unions to provide their members with paid sick days, becoming the second major U.S. railroad to offer its employees the sought-after benefit in 2023.

Concerns over rail safety nationwide hit a peak this month with the toxic chemical train derailment in Ohio this month, leading the Department of Transportation Tuesday to call on both Congress and the freight railroad industry to act immediately to help strengthen safety measures.

"The [Union Pacific] board is grateful to Lance for his unwavering leadership, dedication and oversight in driving our company forward over the last eight years as CEO," Michael McCarthy, the lead independent director of the board, said in a statement.

"Lance created an environment that has allowed Union Pacific to make a measurable impact with our customers, communities and employees alike."

Union Pacific stocks were up 9% in early trading on Monday, increasing to nearly $211.30 per share shortly after the opening bell.