FedEx Corp. said Monday that Fred Smith will step down on June 1 as CEO of the package-delivery company that he founded and be succeeded by the company’s president and chief operating officer.
Raj Subramaniam will serve as both CEO and president and Smith will become executive chairman, the package-delivery company said.
Smith will be replaced as chief executive on June 1 by President and Chief Operating Officer Raj Subramaniam, according to a company press release on Monday. Subramaniam has been at FedEx in various capacities since 1991.
“As we look toward what’s next, I have a great sense of satisfaction that a leader of the caliber of Raj Subramaniam will take FedEx into a very successful future,” Smith said in a statement.
In his new role, Smith said he looks forward to focusing on Board governance as well as issues of global importance, including sustainability, innovation, and public policy. Smith had founded FedEx in 1971.
Smith, 77, will transition to the role of executive chairman, overseeing sustainability, innovation, public policy, and other global issues, FedEx said.
Smith, who served as an officer in the U.S. Marine Corps in Vietnam, officially launched Federal Express in 1973 with 389 team members and 14 small planes that flew 186 packages from Memphis to 25 U.S. cities.
Back in 2019, when Subramaniam was named as Smith’s preferred successor, times were rough for the company. Insiders reported tariffs hurt the international movement of packages. The company was dealing with its Amazon breakup, and margins were down. But the pandemic’s e-commerce boom boosted FedEx’s fortunes.
Headquartered out of Tennessee, FedEx has 600,000 employees globally.
Mr. Subramaniam was elected to the FedEx Board of Directors in 2020 and will maintain his seat on the Board, the company said.
About New CEO
Subramaniam, 56, joined the company in 1991 and served in several marketing and management jobs in Asia and the United States. He rose to become the chief marketing and communications officer, and also served as the top executive of FedEx Express.
He became president and chief operating officer in 2019. He joined the FedEx board the following year and will remain a director.
Smith said that for the past several years he had recommended to FedEx directors. If he died or became disabled they should name Subramaniam CEO and appoint an independent chairman. On Monday, the board appointed a current director, Brad Martin, as vice chairman and Smith’s designated successor as chairman.
Smith broke the news to FedEx employees in a memo that retraced some of the Memphis, Tennessee-based company’s histories. FedEx started with 14 planes and 389 team members, who delivered 186 packages on the first day of operations.
