June 6 (Bloomberg) -- United Parcel Service Inc. named David Abney chief executive officer, replacing Scott Davis, who will retire after 29 years with world’s largest package-delivery company as it grapples with an increase in online shopping.
Abney, 58 currently chief operating officer, will become the 11th CEO in the 107-year history of the company, UPS said in a statement today. He began his career with UPS in 1974 as a part-time package loader. Over the course of his career, Abney has been responsible for logistics and has lead the company’s investment in alternative fuel fleets and efforts to expand freight volume.
Davis, 62, who has been CEO since 2008 and served as chairman of the board, will retire and assume the role of non- executive chairman. Both moves are effective Sept. 1. Since founder Jim Casey left UPS after more than five decades in charge, the company’s CEOs have served for an average of 5 1/2 years. All previous chiefs have come from within the Atlanta- based company.
Davis navigated the global financial crisis and the 5.16 billion euro ($7 billion) bid for TNT Express NV that collapsed last year. The company is reviewing some of its shipping methods and will spend more than $100 million to improve peak-period service after a late surge in online Christmas shopping caused missed deliveries that boosted costs.
UPS rose 0.6 percent to $103.62 yesterday in New York. The shares have declined 1.4 percent this year compared with a 5 percent gain for the Standard & Poor’s 500 Index.