Global shipping and logistics giant UPS has tapped a former top Home Depot finance executive to take over as CEO, becoming UPS' 12th chief executive and first female to hold the position in the company's 113-year history.
UPS, based in Sandy Springs, Georgia, outside Atlanta, said Thursday that Carol Tomé, who retired from Home Depot after 24 years at the home improvement giant, would take over as CEO from David Abney as of June 1. Abney will then become executive chairman of the board. Tomé, 63, has served on UPS' board of directors since 2003 and is one of three women on the 12-member board.
Four months later, on Sept. 30, Abney, 64, will retire from the board but remain a special consultant through the end of 2020. At that point, Abney will end his 46-year career at UPS where he oversaw the company moving its headquarters from Greenwich, Connecticut, to the Atlanta area in 1991 in one of the largest-ever corporate relocations at the time. UPS' lead independent director and executive committee member, William Johnson, will replace Abney as nonexecutive chairman when Abney retires from the board.
Abney's compensation package for 2018, the most recent data available, totaled more than $15 million, including a base salary of $1.23 million, according to UPS' 2019 proxy statement filed with the U.S. Securities and Exchange Commission. Its 2020 proxy is expected to be issued later this month.
“After a rigorous selection process involving both internal and external candidates, Carol was the clear choice,” Johnson said in a press release. “Carol is one of the most respected and talented leaders in Corporate America and has a proven track record of driving growth at a global organization, maximizing shareholder value, developing talent and successfully executing against strategic priorities."
With reported revenue of $74 billion in 2019, UPS ranks as the world's largest package delivery company. It has nearly half a billion employees worldwide, 413,000 of whom are in the United States.
The company is a huge player in industrial real estate and the retail world as well. UPS' package operations occupy more than 1,800 spaces that are owned or leased, and its supply chain and freight operations have more than 500 facilities in more than 125 countries totaling 38 million square feet of space, according to a company fact sheet.
The UPS Store has more than 5,200 outlets and its retail shipping operation has about 1,000 UPS customer centers.
Tomé will take over UPS as its business is being impacted by the coronavirus pandemic. As of Wednesday, more than 118,000 cases of the coronavirus and 4,292 deaths had been confirmed worldwide, according to the World Health Organization. During a March 3 Raymond James investor conference, UPS Chief Financial Officer Brian Newman said "the business obviously slowed" as coronavirus affected the package delivery industry, according to a report from Reuters. UPS' planes continue to operate in China, the country hit hardest by the pandemic.
Tomé served as chief financial officer for 18 of her 24-year tenure at Home Depot.
Her time at Home Depot and commitment to the Atlanta community earned her the reputation as a well-respected leader. Some in the city's corporate world had her pegged as the person who would replace Frank Blake as CEO. But in November 2014, Home Depot promoted Craig Menear, long-time company merchandising executive, to its chief executive position. Menear became chairman on February 2015.
Tomé, who was born in a log cabin hospital in Jackson, Wyoming, retired from Home Depot on Aug. 31, 2019, but remained active on several national corporate boards, including food and beverage company Sovos Brands. In December, Cisco Systems appointed her to its board. On Jan. 1, she joined Verizon's board of directors.
“I look forward to working with and further developing the talented management team and the company’s 495,000 employees to deliver for our customers and shareowners,” Tomé said in a statement. “David has led a remarkable transformation at UPS and I plan to build on his success. UPS’s rich culture and commitment to its values will guide us as we continue to lead the industry and build on the company’s already strong foundation.”
UPS appointed Abney as CEO in 2014 and chairman in 2016. During his tenure, company revenue increased 27% and adjusted net income by almost 50%, the company said. He started his career at UPS at a small facility in his hometown of Greenwood, Mississippi, while studying at Delta State University.