8-KLeadership ChangesRegulation FDExhibits & Filings

UNITED PARCEL SERVICE INC 8-K Report, Executive Changes (Mar 13, 2020)

Filed March 13, 2020For Securities:UPS

Summary

United Parcel Service, Inc. (UPS) announced a significant leadership transition, appointing Carol B. Tomé as its new Chief Executive Officer, effective June 1, 2020. Ms. Tomé, a current UPS Board member since 2003, brings extensive financial and leadership experience from her tenure as Executive Vice President and Chief Financial Officer at The Home Depot. This appointment marks a pivotal moment for UPS as it navigates future growth and operational strategies under new executive leadership. David P. Abney will retire as CEO on June 1, 2020, and will transition to Executive Chairman until September 30, 2020, to ensure a smooth handover. Following this, he will serve as a special consultant until year-end. The Board has also elected William R. Johnson, currently the Lead Independent Director, to become Chairman of the Board upon Mr. Abney's resignation from that role. These leadership changes are accompanied by detailed employment and transition agreements outlining compensation and post-employment arrangements.

Key Highlights

  • 1Carol B. Tomé appointed as the new CEO of UPS, effective June 1, 2020.
  • 2Ms. Tomé has been a UPS Board member since 2003 and previously served as EVP & CFO of The Home Depot.
  • 3Current CEO David P. Abney will retire as CEO on June 1, 2020, and transition to Executive Chairman until September 30, 2020.
  • 4William R. Johnson will assume the role of Chairman of the Board effective September 30, 2020.
  • 5Ms. Tomé's compensation package includes a base salary of $1,250,000, with significant performance-based incentive and equity awards.
  • 6Mr. Abney will receive continued salary and incentive awards during his transition period.
  • 7Both Ms. Tomé and Mr. Abney have entered into agreements with customary noncompetition and nonsolicitation covenants.

Frequently Asked Questions

Carol B. Tomé has been appointed as the new Chief Executive Officer of UPS. Her tenure as CEO officially begins on June 1, 2020.

Carol B. Tomé has been a member of the UPS Board of Directors since 2003. Prior to this appointment, she served as Executive Vice President and Chief Financial Officer of The Home Depot, Inc. from 2001 to August 2019. She has extensive experience in financial services, real estate, and strategic business development.

Upon retiring as CEO on June 1, 2020, David P. Abney will serve as Executive Chairman to assist with transition matters until September 30, 2020. He will then remain employed by UPS as a special consultant to the CEO and Board until December 31, 2020.

Ms. Tomé's compensation package, effective June 1, 2020, includes an annual base salary of $1,250,000, a target Management Incentive Program award of 165% of base salary, a target Long-Term Incentive Performance program award of 735% of base salary, and a stock option grant valued at 90% of her base salary.