Railroad Forums
WHY HASN'T DICK DAVIDSON BEEN UNCEREMONIOUSLY FIRED BY NOW?
- Discussion about the Union Pacific operations past and present. Official site can be found here: UPRR.COM.
Moderator: GOLDEN-ARM
by Gilbert B Norman
LCJ wrote:The Board represents the interests of the shareholders. If the shareholders were unhappy with the way things were going, they would insist on a Davidson-free Union Pacific. Apparently, the shareholders are satisfied."Sorry 'bout that' if you don't agree, Mr. Don Pevsner, but somebodymust be doing something right.
by updrumcorpsguy
UPRR engineer wrote:Do you think Dick gets the same attention in Omaha like Donald Trump does in NY? Everyone knows who he is? Not the same attention as Mr. Trump.Omaha toadies to their corporations on a civic level (i.e. rampant corporate welfare because they are afraid new industry won't locate there) but they aren't really into CEO worship per se. If anyone is Donald Trump in Omaha, it's Warren Buffet.
Where does he shop? lol
I think Davidson was king of Ak-Sar-Ben a few years back (which is both a silly pageant AND the civic acheivement for an executive in Omaha) but other than that, the Davidsons keep a low profile, and are thought of as rather stingy in the charity scene. His predecessor, John Kennifeck (one of my favorite people - a real gentleman and a great CEO) is still quite active socially and highly regarded.
And yes, I think that the Davidsons probably go to Chicago or Kansas City when they want to go shopping. There's not many options in Omaha anymore. Dillards is about as nice as it gets.
But remember - CEO's are largely a reflection of their management team - and when a company is established with huge cash reserves, it's much more of a figurehead position than anything else. Not that they don't make important decisions every day, but they are more in the business of maintenance than building.
by NellieBly
Good question. But it applies equally to the senior managements of NS, CSX, and BNSF too.
During the mid-1990s, through a round of ill-advised and poorly executed mergers, the railroad industry in the U.S. retured $20 billion in capital to investors while making the industry less efficient.
I had occasion to speak with Bruce Allen, a professor at the Wharton School and a long-time railroad industry observer, in 1999. He said, "My students ask me how, after management's poor performance, the same managers are still in charge of the railroads. I don't have an answer for them."
So it's not just Dick Davidson. Collectively, the industry hasn't covered itself with glory over the last decade. The mergers produced little of value, the volume purchases of A/C locomotives were an almost total waste of money, and the industry failed to invest in what was REALLY needed -- track capacity. It looks like the industry will manage a turnaround now, despite itself, because there is a serious shortage of truck drivers and therefore the downward pressure on rail rates has finally ended after more than 20 years. Good news for the railroads, bad news for shippers who are seeing both poor service and higher prices.
I post under a "nom de plume" because I earn my living consulting in the railroad industry, and one doesn't really want to tell potential clients that they're idiots. But unfortunately, a review of their "track record" over the last decade doesn't reveal much foresight or intelligence.
During the mid-1990s, through a round of ill-advised and poorly executed mergers, the railroad industry in the U.S. retured $20 billion in capital to investors while making the industry less efficient.
I had occasion to speak with Bruce Allen, a professor at the Wharton School and a long-time railroad industry observer, in 1999. He said, "My students ask me how, after management's poor performance, the same managers are still in charge of the railroads. I don't have an answer for them."
So it's not just Dick Davidson. Collectively, the industry hasn't covered itself with glory over the last decade. The mergers produced little of value, the volume purchases of A/C locomotives were an almost total waste of money, and the industry failed to invest in what was REALLY needed -- track capacity. It looks like the industry will manage a turnaround now, despite itself, because there is a serious shortage of truck drivers and therefore the downward pressure on rail rates has finally ended after more than 20 years. Good news for the railroads, bad news for shippers who are seeing both poor service and higher prices.
I post under a "nom de plume" because I earn my living consulting in the railroad industry, and one doesn't really want to tell potential clients that they're idiots. But unfortunately, a review of their "track record" over the last decade doesn't reveal much foresight or intelligence.
by Gnu
No fire just retire. Davidson will work as Chair until Jan 06. I'm excited to see how Mr. Young will handle things.
Signed: Maintenance in the Way
Signed: Maintenance in the Way
by AmtrakFan
John_Perkowski wrote:You need to read some annual reports. Look at the ages of directors on various corporate boards. 65 is not old!Well Mr. Perkowski that is very true. It's time I buy some stock so I can read the annual reports. Mr. Davidson never comes to Chicago on his train it seems like. Maybe he does his shopping in Seattle or LA.
Lots of executives stay on past 65. Social Security and Medicare does not define retirement for these folks.
John Perkowski