- Push-out Score determined
- After about six years in the position
- Accolades and praise for Abney
- Carol Tomé taking over
- Abney will remain as Executive Chairman at UPS
- Abney said 99 words
(exechange) — Atlanta, Georgia, March 12, 2020 — David Abney, chief executive of UPS, leaves his position. As announced by United Parcel Service Inc. in a news release on Thursday, March 12, 2020, David P. Abney leaves his post as chief executive officer at the package delivery and supply chain management company after about six years in the role, effective June 1, 2020.
Abney leaves the company effective December 31, 2020.
David Abney’s duties as CEO will be taken over by Carol Tomé, a former Chief Financial Officer of Home Depot Inc.
Already a director
Tomé is already a director of UPS. Generally speaking, most director-turned-CEO appointments signal a lack of preparedness on the company’s part to groom internal talent. On the other hand, directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Tomé understands the expectations and dynamics of the board and has knowledge of UPS’s organization, risk-management practices and strategy.
“The right executive to lead the company at this important time in its transformation”
UPS did not give an explicit reason for David Abney’s departure from the CEO post. William Johnson, UPS Lead Independent Director, said: “As a member of the Board and Chair of the Audit Committee, Carol has in-depth knowledge of UPS’s business, strategy and people, and is the right executive to lead the company at this important time in its transformation.”
Abney will remain as Executive Chairman at UPS
“David Abney, the current Chairman and Chief Executive Officer, will remain in his role until June 1 when he will become Executive Chairman of the Board. He will retire from the UPS Board on September 30,” UPS said.
Share price decline
The announcement follows a decline in United Parcel Service Inc.’s share price of 10% since September 2014.
In the position of CEO since 2014
David Abney became CEO of the Company in 2014.
In order to ensure a smooth transition and successful peak season, Abney will remain as a special consultant through the end of 2020 and then retire after 46 years of UPS service.
On September 30, William Johnson, UPS Lead Independent Director, will assume the role of Non-Executive Chairman.
David Abney became UPS’s Chief Executive Officer in 2014, and assumed the role of Chairman of the Board of Directors in 2016.
David Abney previously served as chief operating officer since 2007, overseeing logistics, sustainability, engineering and all facets of the UPS transportation network.
Before serving as COO, Abney was president of UPS International, leading the company’s strategic initiative to increase its global logistics capabilities.
During his career, he was also involved in a number of global acquisitions that included the Fritz Companies, Stolica, Lynxs, and Sino-Trans in China.
Earlier in his career, he served as president of SonicAir, a same-day delivery service that signaled UPS’s move into the service parts logistics sector.
Abney began his UPS career in 1974 in Greenwood, Mississippi.
In addition to his corporate responsibilities, Abney serves as a Trustee of The UPS Foundation and as a Trustee of the Annie E. Casey Foundation.
He is the 2019 Chair Elect, Executive Governing Committee Member of the Metro Atlanta Chamber of Commerce, is the former Chairman and current member of the World Affairs Council of Atlanta, and is a member of the Business Roundtable.
Abney currently serves as a board member of the nonprofit organization, Catalyst.
He joined the Board of Directors of Macy’s, Inc. in 2018.
He served on the Board of Directors of Johnson Controls International plc, until 2018.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to UPS and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 11.2020 ($).