The nation’s second-largest freight railroad company announced new leadership today, as Union Pacific said Jim Vena would step up to the CEO chair on August 14, replacing Lance Fritz after eight years in the corner office.
Also today, the company announced that Beth Whited, UP’s executive vice president, sustainability and strategy and chief human resources officer, has been appointed as president, reporting to Vena. And Mike McCarthy, UP's lead independent director, has been elected as chairman of the board.
Fritz currently holds all three titles of chairman, president, and CEO. But under the new flowchart, 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. Before his stint at UP, Vena worked for four decades at rival freight firm Canadian National (CN), where he started out as a brakeman and worked his way up to chief operating office (COO) and EVP.
During his time at the helm, Fritz led UP through major challenges including the adoption of “precision railroading” principals in 2018, the covid pandemic in 2020, a threatened labor strike by rail workers that was eventually broken up by Congress and the Biden Administration in 2022, and increased regulatory scrutiny triggered by the Norfolk Southern derailment and chemical spill in East Palestine, Ohio, in 2023. Following the federal action forcing workers back on the job, Fritz also negotiated a major contract renewal that granted union demands for more predictable schedules and paid sick leave.
Stock investors approved of the choice, although the leadership change was unexpected. In a note to clients, Bascome Majors, an analyst with Susquehanna International Group, LLP (SIG), said the move was “a surprise in both timing and outcome,” but gave his stamp of approval. “We believe Jim Vena was the best candidate available to get the trains running consistently on time at [UP] and see a potential virtuous cycle ahead of improving service levels, volume growth, and profit growth,” Majors wrote.
Editor's note: This article was revised on July 26 to add input from SIG.
Gartner, Inc.