Union Pacific (NYSE: UNP) said it plans to replace its CEO in 2023, responding to a call from an activist investor to remove Lance Fritz as chief executive. Investors appear on board with the change; as of 1:17 p.m. ET, shares of Union Pacific were up 9.3%.

Union Pacific is one of the nation's largest railroads, with a sprawling route network across the Western half of the United States and access to some of the country's most important ports. But that powerful network hasn't really paid off for investors lately, with Union Pacific shares down more than 20% over the past year prior to today, and trailing the S&P 500 by nearly 30 percentage points.

Soroban Capital Partners, a hedge fund that owns about $1.6 billion worth of Union Pacific shares, believes a shake-up in order. In a letter to the board released over the weekend, Soroban argued that the railroad has underperformed during the eight-year tenure of Fritz, and said the time has come for a change at the top.

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Source Fool.com