- Push-out Score determined
- After 24 years in the position
- Praise for Smith
- Raj Subramaniam taking over
- Smith will remain as Executive Chairman at FedEx
- Smith said 72 words
(exechange) — Memphis, Tennessee, March 28, 2022 — Fred Smith, chief executive of FedEx, leaves his position. As announced by FedEx Corp. in a news release and in a regulatory filing published on Monday, March 28, 2022, Frederick W. (Fred) Smith leaves his post as chief executive officer at the package-delivery company, after 24 years in the role, effective May 31, 2022.
It is the end of an era.
Fred Smith’s duties as CEO will be taken over by Rajesh (Raj) Subramaniam, currently President and Chief Operating Officer at FedEx Corp.
It is a generational change. Raj Subramaniam is about 21 years younger than Fred Smith.
No reason given
In the announcement, FedEx did not explicitly explain the reason for the move.
Smith will remain as Executive Chairman at FedEx
“[E]ffective June 1, 2022, Frederick W. Smith, Chairman and Chief Executive Officer, will become Executive Chairman, and Raj Subramaniam, President and Chief Operating Officer, will be promoted to President and CEO,” FedEx said.
“Step down”
FedEx said: “On March 25, 2022, Frederick W. Smith, Chairman of the Board and Chief Executive Officer of FedEx Corporation (“FedEx” or the “Company”), informed the Company’s Board of Directors (the “Board”) that he will step down as Chief Executive Officer of FedEx effective May 31, 2022.”
In addition, R. Brad Martin, Chair of the Board’s Audit Committee, is now non-executive Vice Chairman of the Board. As Vice Chairman of the Board, Martin is the Board’s designated successor to serve as Chairman of the Board. David P. Steiner, Chair of the Board’s Governance, Safety, and Public Policy Committee, will continue to serve as Lead Independent Director. Smith and Subramaniam will both report directly to the Board, and the Chief Operating Officer position will not be backfilled. As part of the transition, Subramaniam has been named President and CEO-elect of FedEx Corp. effective immediately.
Share price increase since March 2017
The announcement follows an increase in FedEx Corp.’s share price of 15% since March 2017.
In the position of CEO since 1998
Fred Smith became CEO of the Company in 1998.
Smith is the company’s founder and has been Chairman of the Board and Chief Executive Officer of FedEx since 1998 and Chairman of FedEx Express since 1975.
Smith was President of FedEx from 1998 through January 2017.
He was Chairman, President, and Chief Executive Officer of FedEx Express from 1983 to 1998, Chief Executive Officer of FedEx Express from 1977 to 1998, and President of FedEx Express from 1971 to 1975.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding Fred Smith’s move on a scale of 0 to 10.
exechange reached out to FedEx and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 14.2022 ($).