The transportation, logistics and supply chain giant has only ever known one Chief Executive, Frederick Smith, who will soon be replaced by his successor.
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Frederick Smith launched FedEx 50 years ago with the aim of delivering correspondence and packages more quickly than the U.S. postal service. Under his five decades of leadership, it has become a global conglomerate and one of the world’s largest transportation companies, providing supply chain, logistics, ecommerce and other services. Effective June 1, the legendary founder will step down as CEO and Chairman, passing the torch to company veteran Raj Subramaniam.
FedEx’s CEO succession had long been in the works by the time it was announced publicly in late March. Smith said that for the past several years, he had recommended Raj Subramaniam for the top job. “[FedEx] has always had rigorous succession planning, particularly for our senior officers, which is reviewed by the board, and in particular my position as Chairman and as the Chief Executive Officer,” says Smith, who will assume the role of Executive Chairman in June.
CEO-elect Subramaniam has been with Memphis, Tennessee-based FedEx since 1991. He has served in various executive roles in the U.S. and Asia, including Chief Marketing and Communications Officer of FedEx Corp., and President and CEO of FedEx Express, the largest of FedEx’s three major operating companies and world’s largest express transportation company. He was appointed to his most recent role, President and Chief Operating Officer of FedEx Corp., in 2019.
As described on the company’s website, “Subramaniam is responsible for several recent transformational initiatives, including revitalizing the company’s operating strategy, profitably growing the ecommerce business, and harnessing the power of global supply chain data to drive the company’s digital transformation.”
The leadership change will affect FedEx’s board as well as its C-suite. Subramaniam currently serves as a Director and member of the Executive Committee and Strategic Management Committee. When he becomes President and CEO, he will assume chair positions on both committees. Another Director, Brad Martin, has been appointed as Vice Chairman and Smith’s designated successor as Chairman.
Given the size and position of the enterprise within the global economy, Subramaniam’s appointment has broad implications. FedEx is so entwined with businesses worldwide, and notably the supply chains on which they rely, that it is often seen as an economic bellwether. As the New York Times reports, the transportation giant operated a fleet of 695 aircraft across 220 countries in 2022, and moves about 17 million packages per day. It employs some 600,000 people, and earned $5.2 billion on revenue of $84 billion in its most recent full fiscal year, ending last May 31.
