UPS announces major leadership change
Michael Eskew, chief executive officer and chairman of UPS, will retire at the end of the year and be replaced by Chief Financial Officer Scott Davis, the Atlanta-based package delivery and logistics services company announced Monday.
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Michael Eskew |
Davis, 55, was named vice chairman in 2006. He also serves as deputy chairman of the Federal Reserve Bank for the Atlanta region.
Eskew, 58, took over the UPS leadership at the start of 2002. Both men continued to move the company into new lines of business, expanding the company’s supply chain portfolio into the heavy freight trucking market with the 2005 acquisition of Overnite Corp. for $1.25 billion, and heavyweight air freight with the late 2004 acquisition of Menlo Worldwide Forwarding for $260 million in cash and debt.
The company noted that UPS revenues grew nearly 57 percent to $47.5 billion and net income rose more than 75 percent under Eskew’s tenure. UPS has also placed a lot of emphasis on its international package network, which has experienced a doubling of revenue to $9 billion.
Davis’ ascension is notable for being the first UPS chief who has not risen through the ranks from a package handler, driver, pre-loader or industrial engineer. Davis joined the company in 1986 when UPS acquired technology firm II Morrow, for which he was CEO at the time. His finance background will serve him well now that UPS is a public company and works closely with the investment community, according to industry analysts.
Eskew’s departure is part of a normal rotation pattern at UPS in which modern-day CEOs stay on for roughly five to six years. Eskew will have completed six years on the job after a 35-year career at UPS; James Kelley, his predecessor was CEO for eight years, and the CEO before that held the job for five years.
The world’s largest package delivery company also announced several other executive changes. Kurt Kuehn, senior vice president of global sales and marketing, will move up to replace Davis as CFO. Kuehn’s position will be filled by Alan Gershenhorn, president of UPS International.
Dan Brutto, president of global freight forwarding for UPS, will be promoted to president of UPS International.
All the men are long-time UPS veterans.