Hollis Johnson/Business Insider
UPS employs nearly 500,000 worldwide.
- UPS CEO David Abney is retiring after 46 years with the company.
- Former Home Depot CFO Carol Tomé will take over June 1.
- It's the first time an outside hire has taken the executive role in the company's 112-year-old history.
- Visit Business Insider's homepage for more stories.
UPS announced on Thursday that former Home Depot CFO Carol Tomé will assume the chief executive officer role on June 1.
Tomé will replace outgoing CEO David Abney, whose retirement UPS announced Thursday. He will become the executive chairman of the board, before retiring from that on September 30. Abney will stay on as a special consultant through the end of 2020.
"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 UPS press release. "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."
Tomé has served as on UPS' Board of Directors since 2003, and currently chairs its Audit Committee. She also is credited with driving a 450% increase in Home Depot's shareholder value during her 18 years as Home Depot's CFO, according to the release. She will be the first woman CEO of UPS.
Courtesy of UPS
Carol Tomé, incoming UPS CEO
Tomé's appointment to CEO is a first in UPS' 112-year history for another reason: She's the company's first outside CEO hire. UPS' 11 previous CEOs all rose through the ranks of the company.
Abney, a Mississippi native, began his career at UPS in 1974. The then-19-year-old started working nights as a package handler while taking business classes. He stayed at the company after graduating from Delta State University and took the helm of the package giant in 2014.
Scott Davis, who served as UPS CEO from 2008 to 2014, joined UPS when his aviation tech company was acquired in 1986. Michael Eskew, who proceeded Davis as CEO from 2002 to 2007, began his career at the package giant in 1972 as an industrial engineering manager.
The outside CEO hire marks a new tone for UPS. As Business Insider previously reported, it's so typical to have started in operations that those who join later in their career are jokingly referred to as "hired off the streets," while those who began their careers at UPS are said to have "grown up at UPS."
About a third of UPS management started in operations, Teri McClure, Chief Human Resources Officer at UPS, told Business Insider in 2018. Around half of its lawyers "grew up" in the company.
Abney's tenure from 2014 to 2018 as CEO oversaw a boom in e-commerce - and UPS' business. The Atlanta-based company's revenue jumped by 27% under Abney's leadership.
The company was also tasked with upping margins amid a surge of packages, modernizing its sortation network, and introducing new technologies like drone delivery. In all, Abney's tenure saw an increase in adjusted net income by nearly 50%.