Union Pacific 2005 Annual Report Download - page 5

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UP EMPLOYEES - A CRITICAL RESOURCE
As we continue to hire for growth and to oset attrition, our
goal is to be the “Employer of Choice” for our 49,750 current
employees as well as the many prospective candidates we
interview each year. Over the past two years, Union Pacic
hired more than 13,000 employees into a rewarding,
diverse and healthy work environment:
• UP was named the nation’s top Military Friendly
Employer for 2005 by GI Jobs magazine.
• e Union Pacic Child Development Center opened
in Omaha to provide care and an educational
curriculum to young children of UP employees.
• Working Mother magazine honored us for the fourth year,
and LATINA Style magazine for the third consecutive year,
as a top employer.
• e Company also received numerous accolades for its
employee health programs, including the prestigious
C. Everett Koop National Health Award. Union Pacic
is the only four-time recipient of this award and the only
corporation honored in 2005.
e American Red Cross presented UP with its Circle of
Humanitarians Award for donating so generously to its
hurricane relief eorts. Employees contributed to the Red
Cross, Salvation Army, America’s Second Harvest and the
Baton Rouge Area Foundation to aid hurricane victims.
Employees also donated to UP’s own Friend-to-Friend
Network to help fellow employees who were aected by the
hurricanes. In total, we donated more than $1 million to
these worthwhile agencies.
UP has always maintained the highest standards of ethics,
disclosure to investors and nancial reporting. We have
taken additional steps to comply with every aspect of the
complex rules and regulations resulting from the Sarbanes-
Oxley Act. Beyond that, we are implementing a risk-based
compliance program to ensure a culture of compliance with
laws and regulations in every aspect of our business.
CORPORATE CHANGES
As we enter 2006, we are moving ahead with the succession
plan we began a few years ago. As of January 1, Jim Young
took on the added responsibilities of president and chief
executive ocer of the Corporation while I remain
chairman of the board. Jim was elected to the Union Pacic
board in February 2005. ese changes ensure an orderly
management transition process for our Company.
Our Board will see additional changes in 2006 when Spencer
Eccles steps down in compliance with the Board’s mandatory
retirement age. Spence has been on the Board since 1976 and
is currently serving on the Compensation and Benets
Committee and the Audit Committee. His great insight and
wisdom over the years will certainly be missed. Dr. Ernesto
Zedillo has decided not to stand for re-election due to his
challenging workload as Director of the Yale Center for the
Study of Globalization. Ernesto has been on the Board since
2001, serving on the Audit and Finance Committees. As the
former President of Mexico, his assistance in understanding
the NAFTA marketplace was invaluable.
I am pleased to welcome General Charles Krulak as our
newest board member. General Krulak is a 35-year veteran
of the U.S. Marine Corps, serving as their Commandant
from 1995 to 1999. Aer retiring from the military, he joined
MBNA, serving rst as the chief executive ocer of MBNA
Europe and then as the executive vice chairman and chief
administrative ocer of MBNA Corporation.
2006 – CONTINUOUS IMPROVEMENT
Looking ahead, we believe that 2006 will be another year
of record business levels as demand remains strong. In this
business environment, we are focused on providing better
service to our customers, improving the eciency of
our network and increasing the nancial returns on our
business. e process of improvement is “evergreen” as
we continue to implement network and market strategies
designed to increase protability.
Beyond 2006, we will plan for the future of this great
Railroad by making prudent capital investments. We will
continue to devote resources for growth, supporting our
long-term goal of earning a return that “meets and beats”
our cost of capital.
e great value of the Union Pacic franchise is being
recognized in today’s marketplace. It is our responsibility
to translate that value into better service for our customers,
rewarding jobs for our employees and higher returns for
our shareholders.
Dick Davidson
Chairman of the Board
Jim Young
President and Chief Executive Ocer
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