The board of directors at UPS has named David Abney, CEO, as chairman of the board, effective immediately.

Abney succeeds Scott Davis, who will retire as of the 2016 annual meeting of shareholders.

“Leading UPS into the future is a great honour, and I thank each and every UPS employee, our management committee and our board for the trust placed in me each day,” said Abney. “Continued international expansion, global e-commerce acceleration and growth in specialized markets present endless opportunities ahead, and it is a privilege to steer UPS to continued success.”

The board has also appointed William Johnson as the newly created lead independent director, who will play an active role in setting future agendas for board meetings, preside at meetings of independent directors, serve as the liaison between the chairman and the independent directors, and consult on shareholder engagement and governance matters, according to a statement.

“Our decision to combine the roles of board chairman and CEO is a result of thoughtful consideration of the board’s leadership structure,” said Johnson. “This change will improve strategic alignment and support the company’s ability to deliver value through profitable global growth, operating efficiency, customer satisfaction and continuous improvement. David Abney’s leadership on our board, combined with many years of distinguished UPS service and a strong track record as CEO have prepared him to fulfil the role of both chairman and CEO.”

Before being appointed CEO in 2014, Abney was chief operating officer. He was also previously president of UPS international.