Indian-American Raj Subramaniam to be new CEO of FedEx: 10 things to know – Times of India


FedEx Corp named Raj Subramaniam as its new chief executive officer. Fred Smith pioneered express delivery almost 50 years ago. Subramaniam, 56, who is currently president, will move into the new position on June 1. Fred Smith, will become executive chairman.
Here are 10 things to know about this development:
– Subramaniam’s promotion was long expected. Less than a month ago, the company named Smith’s son, Richard W Smith, as the next head of its express division.
– Fred Smith has been saying for over two years that he’s nearing the end of his long tenure.
– In a letter to employees, Fred Smith lauded his successor as a “brilliant and humble man,” a team player and a person of “impeccable integrity.” The founder said he recommended Subramaniam to take over as CEO-elect at a board meeting last week. He said the company is nearing its 50th anniversary as part of the timing rationale
– Subramaniam, who joined FedEx in 1991, had been chief operating officer since 2019
– In his 30-plus years with FedEx, Subramaniam has held many positions. He was named chief of marketing and communications in 2017 and took over FedEx’s Express unit two years later.
– Subramaniam also had served as chief of FedEx Express in Canada and in other roles in Asia and the US
– Subramaniam will be under pressure from shareholders to reduce costs and to lower capital expenditures. The elder Smith has been in the midst of a campaign to overhaul the company to stem declining profit margins
– The company has made recent changes which are designed to help FedEx cope with commercial deliveries dwindling as a percentage of sales because of faster-growing e-commerce packages
– Last year, FedEx had annual sales of $84 billion, and analysts expect revenue to increase to $94 billion in the fiscal year ending in May. UPS is still larger with revenue of $97 billion in 2021
(with inputs from Bloomberg and other agencies)


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