ISS and Glass Lewis, both leading providers of proxy research for institutional investors, tell FedEx shareholders in separate reports that it’s time to get rid of Fred Smith, FedEx’s founder, who has served as both chairman and chief executive officer for more than 35 years. According to ISS, the company’s middling performance in recent years and generous stock rewards for senior executive necessitates the move.Smith has received nearly 375,000 shares in the form of stock options valued at more than $14.6 million over the past two years while the company’s stock has not kept up with competitors. Teamsters General Secretary-Treasurer Ken Hall said:
The FedEx board continues to lavish Fred Smith with stock options worth millions despite the company’s long-term underperformance of its peers. Shareholders deserve an independent chairman of the board with a vision for the future.
All this points to one thing -- it is time for a new direction at FedEx.