Please ensure Javascript is enabled for purposes of website accessibility

UPS Replaces Its CEO

By Eric Volkman - Mar 13, 2020 at 7:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Carol Tome will take the reins from David Abney, starting in June.

United Parcel Service (UPS 0.97%) has a new leader. The company announced on Friday that it named Carol Tome as CEO, replacing the current occupant of that office, David Abney. The change is effective June 1.

Tome is a member of the logistics-giant's board of directors and no stranger to the functioning of large companies that are also top stocks in the market. Previously, she was CFO and executive vice president of Home Depot, holding the former post for 18 years. She's been a UPS board member since 2003.

UPS plane with cargo

Image source: UPS

She'll have her work cut out for her, as the fortunes of logistics are tied directly to the health of the economy. And the global economy is bound to be rocked from the effects of the spread of the SARS-CoV-2 coronavirus and the disease it causes, COVID-19.

Abney, who also serves as the chairman of the logistics-giant's board, will continue as CEO until Sept. 30. At that point, he will be replaced by the lead independent board member William Johnson. Abney will vacate the position at that time but stay on until the end of this year with the company as a special consultant. He'll then retire.

UPS said his retention as special consultant is being done "in order to ensure a smooth transition and successful peak season." "Peak season" is the busy end-of-year holiday period.

Abney started at UPS as a package handler, eventually ascending to CEO in 2014. He was appointed chairman in 2016.

The market seemed to be satisfied with the orderly and unhurried transfer of power at the top of UPS. The company's stock closed more than 9% higher in trading on Friday.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

United Parcel Service, Inc. Stock Quote
United Parcel Service, Inc.
UPS
$179.77 (0.97%) $1.73
The Home Depot, Inc. Stock Quote
The Home Depot, Inc.
HD
$295.99 (-0.01%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.