What should investors expect when a company announces an executive shake-up?

Tim Anderson, managing director at TJM Investments, discussed the outcomes for a stock when a company announces a new C-Suite. 

Union Pacific (UNP - Get Report) announced that Jim Vena, previously of Canadian National, to join as the Chief Operating Officer. 

Union Pacific is Real Money's stock of the day

"Unified Plan 2020 combines precision scheduled railroading principles with our own UP Way tools and best practices," Union Pacific CEO Lance Fritz said in a statement. "We have been making excellent strides rolling out Unified Plan 2020, and Jim's vast knowledge of the precision scheduled railroading model brings significant experience and expertise that will enhance the work already underway."

Anderson went through various scenarios and broke down what could happen to stocks depending on the type of executive changes announced by the companies.