Union Pacific hired the CEO Wednesday that a hedge fund pressuring the railroad to improve recommended earlier this year. And the railroad cut its outlook after reporting disappointing second-quarter results driven by weakening consumer demand. Union Pacific said its former chief operating officer Jim Vena will take over as CEO next month. The Soroban Capital Partners hedge fund that holds a $1.6 billion stake in Union Pacific had been urging the railroad to hire Vena because of his expertise in streamlining operations. The hedge fund declined to comment on the hiring news Wednesday but investors endorsed it by sending Union Pacific's stock soaring more than 9%.
