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UP clamps down on lucrative severance packages for senior execs


On Oct. 3, Union Pacific Corp. announced the company recently adopted a new policy prohibiting severance agreements with senior executives that exceed certain limitations unless shareholders approve such deals.

Union Pacific now will conduct a shareholder vote on any severance agreements with senior executive officers that provide specified benefits exceeding 2.99 times the executive's base salary plus bonus.

At UP's annual shareholders meeting in April, a majority of stockholders approved a shareholder proposal relating to severance agreements. The company then began a review process to address future agreements.

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More News from 10/6/2003