FedEx’s proxy statement, filed Monday, showed Smith’s pay package at the highest level since before the Great Recession. He received $17 million in total compensation in fiscal 2007.
Smith’s base salary for the recent year held steady at $1,266,960, but increases in long-term incentive pay helped lift his total from $12.6 million a year earlier.
The compensation disclosures coincided with FedEx’s release of an annual report highlighting a 50 percent increase in share prices in the fiscal year. That’s compared to a 19 percent gain in the S&P 500 and 31 percent gain in the Dow Jones Transportation Average, FedEx said.
Other highlights included an increase in the operating margin from 5.8 percent to 7.6 percent, and a 37 percent increase in earnings per share, to $6.75. The numbers show progress in a multiyear push to boost earnings and profits announced in October 2012.
But the report cautions that the global economy and consumer demand, particularly for the fastest services, will determine whether FedEx Express hits a target of $1.6 billion a year in increased profit by May 31, 2016.
“In FY14 we acted decisively to boost shareowner value, and we are proud of our accomplishments during the year,” Smith said in a letter accompanying the annual report, which can be viewed at news.van.fedex.com.
Referring to a stock buyback program and aggressive cost management, Smith added, “These initiatives are designed to ensure the near- and long-term success of FedEx, including superior financial returns for shareowners. As a result, we believe FedEx is well positioned for stronger growth in earnings and cash flow despite a sluggish global economy and dramatic changes in supply chains.”
FedEx, which had $45.6 billion in revenue in fiscal 2014, is Greater Memphis’s largest private employer with about 30,000 workers.
FedEx shares closed Tuesday at $150, down 42 cents a share.
Smith, 70, outpaced other principal officers of the Memphis-based package delivery giant, according to the proxy statement’s summary compensation table.
Executive vice president and chief financial officer Alan B. Graf Jr.’s total compensation declined 10 percent, to $4.8 million.
Robert B. Carter, executive vice president and chief information officer, posted a 3.8 percent increase, to $4.9 million; executive vice president, market development and corporate communications T. Michael Glenn’s compensation increased 3.1 percent, to $5.2 million; and FedEx Express president and CEO David Bronczek was up 1.3 percent, to $6.5 million.
The proxy statement sets the agenda for FedEx’s annual shareholder meeting in Memphis Sept. 29.
FedEx blocked inclusion in the proxy of a shareholder proposal that would have required examination of company ties with the Washington Redskins and FedEx Field in Landover, Maryland. The team owner is under fire from critics of the team name. FedEx has naming rights for the stadium, and Smith is a 10 percent owner of the team.
A handful of shareholder proposals opposed by FedEx’s board will be voted on at the annual meeting. These include a proposal to allow shareholders to bypass a board committee in nominating board members and a proposal to require the company to disclose all political spending.
Missing from the proxy is a perennial shareholder proposal from the Teamsters calling for an independent board chairman. Smith is also the company’s chairman and chief executive officer.Copyright 2014 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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