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UPS Names Board Member Carol Tome Chief Executive

Original article posted by The Street

Shipping giant United Parcel Service (UPS) named a director, Carol Tome, as its new CEO, effective June 1.

Tome has sat on the UPS board since 2003 and serves as chair of the audit committee. She was formerly chief financial officer for Home Depot (HD) - Get Report.

UPS's current chairman and CEO, David Abney, on June 1 will become executive chairman. UPS said he'll retire from the board Sept. 30. He's been with the Atlanta company for 46 years.

The company’s lead independent director, William Johnson, on Sept. 30 will take the role of non-executive chairman.

“After a rigorous selection process involving both internal and external candidates, Carol was the clear choice,” Johnson, chairman of the UPS nominating and corporate governance committee, said in a statement.

Tome "has a proven track record of driving growth at a global organization, maximizing shareholder value, developing talent and successfully executing against strategic priorities.”

Many analysts see UPS as the strongest of the major delivery companies.

“UPS is the giant among global small-parcel-delivery companies, and it’s one of three commercial providers that dominate the industry; FedEx (FDX) - Get Report and UPS are the major U.S. incumbents, while DHL Express leads in Europe,” Morningstar analyst Matthew Young wrote in a report Wednesday.

“Despite its unionized workforce and asset intensity, UPS produces operating margins well above competitors', thanks in large part to its leading package density. It's been around much longer than FedEx in the U.S. ground market.”

But look out for Amazon (AMZN) - Get Report, Young says. “The potential impact of Amazon’s rapidly expanding in-house delivery capabilities can’t be ignored.”

At last check, UPS shares traded at $87.48, down 0.6%.

 

Original article posted by The Street

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UPS Names Board Member Carol Tome Chief Executive
UPS Names Board Member Carol Tome Chief Executive
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