United Parcel Service has appointed PepsiCo executive Brian Newman as CFO in the latest hiring of an outsider at a pivotal time for the shipping giant.
Newman, currently executive vice president of finance and operations for PepsiCo’s Latin America region, will step into his new role on Sept. 16, replacing Richard Peretz, who is retiring after 38 years at UPS.
According to The Wall Street Journal, Newman’s hiring comes as UPS looks to benefit from rival Federal Express’s decision to end its contracts with Amazon.
In other recent hirings, Scott Price joined UPS in 2017 from Walmart as chief transformation officer. “It is clearly a pivot for them to bring in new blood and new talent at a crucial time for the company,” Amit Mehrotra, a lead analyst at Deutsche Bank USA, said.
Kevin Sterling, managing director at Seaport Global Securities, noted that UPS previously had a preference for homegrown talent, especially in the CFO position. “What sticks out to me is that they promoted someone from outside,” he told the WSJ.
Newman, 50, has worked at PepsiCo for more than 26 years. In his most recent role, he was responsible for all finance and operations activity across the Latin America region.
“Brian’s deep finance knowledge and broad cross-functional experience will be a great asset as we continue our transformation,” UPS Chief Executive David Abney said in a news release. “He will contribute to our drive for improved growth and operating performance, and he will support our strategies focused on the long-term success of the company.”
According to the Journal, UPS “plans to invest $7 billion this year, a shift that comes as its end markets are undergoing significant changes because of the rise of online shopping.”
“What the new CFO needs to attack is reaping the benefits from the growth in online retail without driving up costs too much,” Mehrotra said.
Peretz was appointed UPS finance chief in 2015. “Richard’s leadership and guidance helped the company achieve strong financial and operational performance, and have well positioned the company for the future,” Abney said.