(Union Pacific Corp. issued the following news release on October 3.)
OMAHA, Neb. — The board of directors of Union Pacific Corporation has adopted a new policy that prohibits severance agreements with senior executives that exceed certain limitations unless such agreements are approved by a vote of the Corporation’s shareholders.
The new policy is a result of a review process that began following the Corporation’s annual meeting of shareholders in April. At the meeting, a shareholder proposal relating to severance agreements was approved by a majority of shares present and entitled to vote.
Under the new policy, Union Pacific will seek shareholder approval for future severance agreements, if any, with senior executive officers that provide specified benefits in an amount exceeding 2.99 times the sum of the executive’s base salary plus bonus. A copy of the policy is available on our Web site at: http://www.up.com/investors/governance .
Union Pacific Corporation is one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across the western two- thirds of the United States. A strong focus on quality and a strategically advantageous route structure enable the company to serve customers in critical and fast growing markets. It is a leading carrier of low-sulfur coal used in electrical power generation and has broad coverage of the large chemical- producing areas along the Gulf Coast. With competitive long-haul routes between all major West Coast ports and eastern gateways, and as the only railroad to serve all six gateways to Mexico, Union Pacific has the premier rail franchise in North America. The Corporation’s trucking operations include Overnite Corporation, which owns less-than-truckload carriers Overnite Transportation and Motor Cargo.