Union Pacific hired the CEO that a hedge fund pressuring the railroad to improve recommended earlier this year, and it cut its outlook after reporting disappointing results driven by weakening consumer demand. The Omaha, Nebraska-based railroad said its former chief operating officer Jim Vena will take over as CEO next month. The Soroban Capital Partners hedge fund that holds a $1.6 billion stake in Union Pacific had been urging the railroad to hire Vena because of his expertise in streamlining operations. The hedge fund said that UP lagged behind its peers during Lance Fritz' tenure in all key measures over the past 8 years. Soroban didn't immediately respond to the hiring news Wednesday morning, but investors resoundingly endorsed it by sending Union Pacific's stock soaring more than 8% to $233.48 in premarket trading. Vena was brought in to Union Pacific in 2019 from Canadian National to help the railroad change to a new operating model that relies on fewer, longer trains and significantly fewer employees and locomotives to move freight, but Vena left after less than two years on the job. The company announced Jim Vena has been appointed as chief executive officer and a member of the Board, effective August 14, 2023. Vena succeeds Lance Fritz, who is stepping down as chairman, president and chief executive officer. Going forward, the operations, finance, marketing and sales, supply chain, and technology functions will report directly to Vena. Whited's responsibilities will include the strategy, workforce resources, sustainability, law, corporate relations and government affairs functions. Vena has more than 40 years of industry experience and is returning to Union Pacific after serving as its chief operating officer from 2019-2020 and as a senior advisor to the chairman in 2021. Vena previously served as a Senior Advisor to the Chairman of Union Pacific in 2021 and as Chief Operating Officer from 2019 to 2021. During his time as Chief Operating Officer of Union Pacific, Vena oversaw a team that achieved efficiency savings of over $1 billion and delivered the best service product in the company's history. Prior to that, Vena spent over four decades at Canadian National Railway, a leading North American Transportation and Logistics company, most recently serving as Executive Vice President and Chief Operating Officer from 2013 to 2016. During Vena's tenure as Executive Vice President and Chief Operating Officer,
Canadian National generated the North American rail industry's best operating ratio and achieved the best safety incident ratio in its history. Vena started his 40-year railroad career with Canadian National as a brakeman. He progressively held roles of increasing responsibility, including in various senior management positions across operations, marketing and sales. Vena is a member of the FedEx Board of Directors where he serves on the Audit and Finance and Governance, Safety and Public Policy committees, and DCLI (Direct ChassisLink Inc.), a privately held company, where he serves as Chair of the Audit Committee. He received a Bachelor of Science degree in Mathematics and Chemistry from the University of Alberta and an AGDM (Advanced Graduate Diploma in Management) degree from Athabasca University.