The company’s board elected current CEO David Abney to succeed the retiring Scott Davis as chairman and appointed William Johnson to the newly created position of lead independent director.
UPS has selected current Chief Executive Officer David Abney to succeed the retiring Scott Davis as chairman of the board, effective immediately.
Davis will retire from his position on the UPS board effective as of the 2016 Annual Meeting of Shareowners, the parcel giant said in a statement. Davis was elected chairman and chief executive officer in 2008 and retired as CEO on Sept. 1, 2014 as part of a previously announced succession plan.
The company’s board of directors also announced it has appointed William Johnson to the newly created position of lead independent director. Johnson, a former chairman, president and CEO of the H. J. Heinz Company, will continue to serve as chairperson of the Nominating and Corporate Governance Committee, UPS said.
According to UPS, the new lead independent director position will be responsible for setting future agendas for board meetings, presiding at meetings of independent directors, serving as a liaison between the chairman and the independent directors, and consulting on shareholder engagement and governance matters.
“Our decision to combine the roles of Board Chairman and CEO is a result of thoughtful consideration of the Board’s leadership structure,” Johnson said of Abney’s election. “This change will improve strategic alignment and support the company’s ability to deliver value through profitable global growth, operating efficiency, customer satisfaction, and continuous improvement.
“David Abney’s leadership on our Board, combined with many years of distinguished UPS service and a strong track record as CEO have prepared him to fulfill the role of both Chairman and CEO,” he added.
Abney, who is well-known in the company for his humble roots, starting as a part-time package loader while still in college, has served as CEO since 2014. Prior to his appointment, Abney served as chief operating officer, overseeing logistics, sustainability, engineering and all facets of the UPS transportation network.
Meanwhile, UPS also announced a regular quarterly dividend of $0.78 per share on all outstanding Class A and Class B shares. The dividend is payable March 9, 2016, to shareowners of record on Feb. 22, 2016.
“UPS has a long history of its commitment to cash dividends,” the company said. “For more than four decades it has either increased or maintained its dividend. Since 2000, its dividend has more than quadrupled.”
UPS names Abney board chairman
