Investment group urges Union Pacific shareholders to vote out board member who oversees pay

Union investment group criticizes UP board member

OMAHA, Neb. — An activist investor group wants Union Pacific shareholders to oust the board member who oversees the railroad’s compensation committee.

In a letter disclosed Wednesday, the Change to Win Investment Group urges shareholders to vote out Thomas Donohue and support a proposal suggesting an independent chairman who is not the railroad’s current or former CEO.

The group says Donohue isn’t independent because he leads the U.S. Chamber of Commerce, which Union Pacific has supported. It also says UP doesn’t use an objective formula to determine executive bonuses.

UP spokeswoman Donna Kush says the Omaha company believes its board does a good job and that Donohue has served since 1998 with distinction.

On the Net:

Union Pacific Corp.: www.up.com

CtW Investment Group: www.ctwinvestmentgroup.com