UPS taps former Home Depot CFO Carol Tomé to succeed David Abney as CEO

Dive Brief:

Carol Tomé will be the next CEO of UPS effective June 1, according to a Thursday announcement from the company. Current CEO David Abney will become Executive Chairman of the Board until Sept. 30, and remain in a consultative role to oversee the transition during peak season, before formally retiring at the end of 2020.
Tomé, former CFO of Home Depot from 2001 to 2019, was credited with quadrupling Home Depot's shareholder value over her tenure and has been a member of UPS' board and Chair of its Audit Committee since 2003.
"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," William Johnson, UPS lead independent director and Chair of the UPS Nominating and Corporate Governance Committee, said in a statement.

Dive Insight:

Tomé will be UPS' twelfth CEO in its 113-year history and the first woman to hold the position, Steve Gaut, a UPS spokesperson, confirmed to Supply Chain Dive.

Key elements of Tomé's career that made her stand out for the role are her experiences driving financial growth and developing talent, including her focus on financial strategy and business development at Home Depot, according to the release.

"Her track record for people development is exciting to employees," Gaut said, "her retail experience is highly relevant considering the e-commerce shifts in the logistics industry and her financial background with major investments to drive growth fits well with UPS’s transformation."

Under Abney's leadership, this transformation has included a push for increased automation, and the expansion of its logistics hubs, air cargo capacity, customer-facing UPS Access Points and last-mile network in recent years. After posting record peak season volume and increased profitability in 2019, UPS executives credited these initiatives for its ability to handle steadily increasing e-commerce volumes and a closer relationship with Amazon, which FedEx notably cut ties with last year.

This success motivated Abney's decision to step down after 46 years at the company, and six as CEO.

"This is the right time for me to pass the baton," he said in a statement. "I am extremely pleased for Carol and know she is the best choice to lead the company."