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On Monday, FedEx Corp (NYSE: FDX) named Raj Subramaniam as its new chief executive to succeed Frederick Smith, who founded the package delivery company in 1971.
While Subramaniam will serve as president alongside the CEO role from June 1, Smith will become executive chairman, overseeing sustainability, innovation, public policy and other global issues, FedEx said.
The move has long been expected, as the 77-year-old founder has been saying that he’s nearing the end of his four-decade tenure in the top job.
“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.
“I look forward to focusing on board governance as well as issues of global importance, including sustainability, innovation and public policy.”
FedEx shares jumped over 3.7% in the aftermarket trading session in New York.
Subramaniam joined the Memphis, Tennessee-based package delivery company in 1991 and is currently the chief operating officer. He joined the FedEx board in 2020 and will remain a director.
Earlier this month, FedEx named Smith’s son, Richard Smith, as the regional president of the Americas and Executive Vice President of Global Support for FedEx Express.
He takes the helm as the package delivery company faces mounting competition from its rival United Parcel Service (NYSE: UPS) and former customer Amazon.com Inc (NASDAQ: AMZN).
FedEx, on March 17, posted lower-than-expected quarterly earnings, hit by an ongoing labor shortage, and said on the second half of the year, the company will miss internal targets.
The stock fell 11% this year through Monday’s close.
Picture Credit: CNN