Union Pacific Execs Buy Shares
Oct. 06, 1999
OMAHA, Neb. (AP) _ Union Pacific Corp., the nation's largest railroad, announced Tuesday that 63 senior executives have purchased 1 million shares of company stock under a new incentive plan.
Under the offering filed with the Securities and Exchange Commission, the executives assume interest-bearing loans from the company to buy the stock. Deferred cash payments will be awarded to repay portions of the loans if certain performance and retention criteria are met within the next 40 months, the company said.
If targets are not met, the Union Pacific executives must repay the full amount of their loans and accrued interest to the Omaha-based company.
``The emphasis is on performance,'' Chairman and CEO Dick Davidson said. ``These targets will require dedication and hard work. Our senior executives are making a substantial personal commitment.''
The shares were sold to participants out of treasury stock, Union Pacific said. The company said it plans to replace the shares through open market purchases over time.
Shares of Union Pacific closed up 75 cents, at $48.06 1/4, Tuesday on the New York Stock Exchange.