FedEx announces formal succession plan, with Fred Smith to shift to Executive Director

An official change at the top of the org chart is coming for Memphis-based freight transportation and logistics services bellwether FedEx, with the company announcing this week that effective June 1, Frederick W. Smith, Chairman and Chief Executive Officer, will transition to Executive Chairman, and Raj Subramaniam, President and Chief Operating Officer, assume the position of President and CEO-elect.

“FedEx has changed the world by connecting people and possibilities for the last 50 years,” Smith said in a statement. “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. In my role as Executive Chairman, I look forward to focusing on Board governance as well as issues of global importance, including sustainability, innovation, and public policy.”

Smith’s career ascension and leadership, in the creation of FedEx, originally established as the air ground Federal Express network in 1973, reads as a case study in how to create a business and shape it into one of the most successful and established companies in the world.

When he first founded FedEx, its mission was to serve the rapidly growing, high-tech, high-value-added sectors of the economy, as stated in his FedEx bio. And since that time, FedEx has become a $92 billion company, serving more than 220 countries and territories.

In his current role as FedEx Chairman and CEO, Smith oversees and provides strategic direction for each of the company’s segments, including: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services, which includes FedEx Office, FedEx Logistics, and FedEx Dataworks. FedEx has nearly 700 aircraft, more than 2,100 vehicles, and more than 5,200 operating facilities. What’s more, FedEx has nearly 600,000 employees whom collectively handle more than 16.5 million shipments per day.

Incoming FedEx President and CEO Subramaniam previously served as President and Chief Executive Officer of FedEx Express and was elected to the FedEx Board of Directors in 2020, with the company noting he will maintain his seat on the Board. He joined the company in 1991. Other roles he held at FedEx include: Executive Vice President and Chief Marketing and Communications Officer of FedEx Corp., where he was responsible for developing the corporate strategy; President of FedEx Express in Canada; and in several other management and marketing roles throughout Asia and the U.S.

“Fred is a visionary leader and a legend of the business world,” Subramaniam said in a statement. “He founded one of the world’s greatest and most admired companies, and it is my honor and privilege to step into this role and build upon what he has created. As we continue to transform as a company and reimagine what’s next, we will keep our people-service-profit philosophy at our core. I am immensely proud of our 600,000 team members around the world. Together we’ve set into motion ideas that have changed the world for the better, and together we will unlock new value for our people, customers, and shareholders.”

In a letter to FedEx employees, Smith explained that FedEx is about to enter an important milestone year, for both the company and himself.

“On 17 April 1973, Federal Express began operations with 389 team members who delivered 186 packages using 14 aircraft,” he wrote. “We were a small startup and had our share of skeptics. But that first night of operations set into motion what would become a global connector of people and possibilities that would change our world for the better. While I am immensely proud of what we have created, I don’t like to look backward. We must always be looking ahead. Accordingly, as we enter our 50th year of operations, it is with a great sense of satisfaction that I am stepping into the role of Executive Chairman of the Board on June 1st. I do this with full confidence because I can transition the role of Chief Executive Officer of this great company to a leader of the caliber of Raj Subramaniam.”

And he pointed to Subramaniam’s more than 30 years of experience at FedEx in key global leadership roles across the company’s portfolio of operating companies.

“When he served as Chief Marketing Officer, Raj developed many of the strategies that are in place today, and I am confident they will continue to drive outstanding results for our customers, team members, suppliers, communities, and shareholders,” wrote Smith. “Raj is a brilliant and humble man with great empathy for our various constituencies especially our frontline team members and customers. He is a gentleman of impeccable integrity and is a consummate team player. He has a wonderful family and a broad network of friends around the globe. Given his mix of experience, I can’t think of a better executive in the world to take on the role of CEO of FedEx. There is no doubt he is the right leader to take FedEx into a successful future.”

As for his role as Executive Chairman, Smith said that he will be concentrating on myriad issues germane to freight transportation and logistics, including sustainability, public policy, and innovation.

“One of the things that I am most looking forward to as FY23 begins is the ability to travel more frequently and more widely,” he noted. “I plan to again regularly visit FedEx team members around the globe, to meet and thank them in person which I have been unable to do in FY20 and FY21 because of the pandemic.”

Industry feedback to Smith’s succession plan was replete with accolades for him and his accomplishments over the last several years.

American Trucking Associations (ATA) President and CEO Chris said there is no bigger titan in trucking and transportation than Fred Smith.

“Over the course of five decades, Fred built FedEx from the ground up into one of the most iconic and innovative companies the world has ever known,” said Spear. “His contributions have not only benefited our industry; they have helped transform our economy and forever changed the way we all live. As he steps back from day-to-day operations to serve as executive chairman, Fred Smith can take enormous pride in the lasting legacy he’s achieved through his hard work, ingenuity and vision. His leadership will forever be felt and appreciated by the millions of Americans who work in trucking and the countless more who benefit from its services. We also congratulate Raj Subramaniam on his promotion to become FedEx Corporation’s President and CEO, and look forward to working with him as he leads FedEx into its next chapter of innovation and success.”

John Larkin, Strategic Advisor for Dallas-based Clarendon Capital, described Smith as a living legend in the world of transportation and logistics and a great American.  

“His innovative creation sped up supply chains globally,” said Larkin. “He had the vision, the patience, the leadership skills, and the intestinal fortitude to make his dream a reality.  And, he accomplished so much without losing his humility and without losing his operational focus on the business he created.”

Ben Gordon, Managing Partner of Cambridge Capital, an investor in niche supply chain leaders, and also Managing Partner of BGSA Holdings, a leading mergers and acquisitions advisory firm focused on the transportation, logistics, and supply chain technology sector, called this news the end of an era.

“Fred Smith was the icon who defined our industry for much of the last 50 years,” he said. “He will remain as Chairman, and his impact will continue, but it is time for the next chapter of leadership.”