In a decision that had been expected for several months, United Parcel Service (UPS) Chairman and CEO James P. Kelly has announced that he will retire in January. The UPS board of directors named Vice Chairman and Executive Vice President Michael L. Eskew to take the helm of the transportation and logistics giant.

Kelly, who began his career at UPS in 1964 as a package delivery driver, held a variety of positions with increasing responsibilities over the years. In 1988, he was elected senior vice president and appointed as the company's labor relations manager. He became chief operating officer in 1992 and later served as executive vice president and vice chairman. Kelly became chairman and CEO on Jan. 1, 1997, and has served on the UPS board of directors since 1991.

UPS has grown rapidly under Kelly's leadership. He was also in charge during two of the most significant events in the company's recent history. In August 1997, the company suffered its first nationwide strike by the Teamsters union, curtailing operations and taxing both the company and its customers. Just two years later, Kelly led UPS through its initial public stock offering—at the time, the largest IPO in U.S. history.

Kelly had high praise for his successor. In a prepared statement, he said, "UPS is very lucky to have a person with Mike Eskew's knowledge, experience, and respect ready to assume the leadership of our company."

Eskew now oversees strategic planning, information services, corporate development, mergers and acquisitions, and the UPS Logistics Group. He has led the company's expansion into new business lines, transforming UPS from a transportation company to a provider of supply chain services.

Eskew, a graduate of Purdue University, began his UPS career in 1972 as an industrial engineer. He became industrial engineering manager for UPS Airlines in 1984 and in 1994, was named corporate vice president for industrial engineering. Two years later, he became group vice president for engineering. In 1999, Eskew was named executive vice president and a year later was given the additional title of vice chairman. He has served on the UPS board of directors since 1998.