Summary
This 8-K filing from FedEx Corp. announces a significant leadership change within its core Federal Express Corporation (FedEx Express) subsidiary. David L. Cunningham, Jr., President and CEO of FedEx Express, is retiring effective December 31, 2018. He will be succeeded by Rajesh Subramaniam, who currently holds the position of Executive Vice President – Chief Marketing and Communications Officer of FedEx. This transition is effective shortly after the filing date, indicating a planned and orderly succession process. The filing also details the terms of Mr. Cunningham's separation agreement, including a cash payment of $1,775,240 and reimbursement for his 2018 tax preparation costs. Notably, Mr. Cunningham has entered into a two-year non-compete agreement, restricting him from working with key competitors such as the United States Postal Service, United Parcel Service, Amazon.com, and DHL within the United States. This agreement aims to protect FedEx's competitive interests following his departure.
Key Highlights
- 1Departure of David L. Cunningham, Jr. as President and CEO of FedEx Express, effective December 31, 2018.
- 2Appointment of Rajesh Subramaniam as the successor to Mr. Cunningham.
- 3Mr. Cunningham to receive a separation payment of $1,775,240.
- 4FedEx Express will reimburse Mr. Cunningham for his 2018 tax preparation costs.
- 5Mr. Cunningham has agreed to a two-year non-compete agreement with major competitors.
- 6The non-compete agreement restricts employment with USPS, UPS, Amazon.com, and DHL in the U.S.