Summary
FedEx Corp. announced a significant leadership change via an 8-K filing on February 14, 2019. David J. Bronczek, the company's President and Chief Operating Officer, is retiring effective February 28, 2019. This departure is amicable, with no disagreements cited regarding the company's operations or policies. Mr. Bronczek will also step down from the Board of Directors, reducing its size to 12 members. As part of his retirement agreement, Mr. Bronczek will receive a cash payment of $2,510,712 and reimbursement for his 2018 tax preparation costs. Importantly, he has agreed to a five-year non-compete clause, restricting him from working with key competitors such as UPS, DHL, the U.S. Postal Service, and Amazon.com. He remains eligible for prorated incentive payouts based on his tenure within the company's fiscal year 2019 incentive plans.
Key Highlights
- 1David J. Bronczek, President and COO, to retire effective February 28, 2019.
- 2Bronczek's retirement is amicable, with no disputes over company operations, policies, or practices.
- 3Bronczek will also retire from the Board of Directors, reducing its size to 12.
- 4A separation agreement includes a cash payment of $2,510,712 to Mr. Bronczek.
- 5Mr. Bronczek has entered into a five-year non-compete agreement with FedEx, restricting work with major competitors.
- 6Bronczek is eligible for prorated incentive compensation based on his service period.
- 7The separation agreement includes mutual releases of claims between FedEx and Mr. Bronczek.