Summary
FedEx Corporation (FDX) has filed an 8-K report detailing amendments to its FY25–FY27 and FY26–FY28 Long-Term Incentive (LTI) Plans, effective March 9, 2026. These changes are primarily driven by two significant corporate events: the planned spin-off of FedEx Freight, expected on June 1, 2026, and the shift in FedEx's fiscal year-end from May 31 to December 31, effective June 1, 2026. The amendments adjust how performance is measured for these LTI plans to account for these upcoming changes. Specifically, the company will measure actual performance for each LTI plan through the end of the current fiscal year, FY26 (ending May 31, 2026), using the original performance goals. For the remaining periods of these plans, target performance will be assumed. The final payouts will then be calculated using a weighted average of the actual FY26 performance and the assumed target performance for the subsequent periods. This approach aims to provide a fair compensation structure amidst significant operational and structural changes within the company.
Key Highlights
- 1FedEx amended its FY25–FY27 and FY26–FY28 Long-Term Incentive (LTI) Plans.
- 2Amendments are effective March 9, 2026.
- 3Key corporate events influencing these changes include the FedEx Freight spin-off (June 1, 2026) and the fiscal year-end change to December 31 (effective June 1, 2026).
- 4Performance for the LTI plans will be measured using actual results through the end of FY26 (May 31, 2026).
- 5Target performance will be assumed for the remaining portion of the LTI plan periods after FY26.
- 6Payouts will be a weighted average of actual FY26 performance and assumed target performance.
- 7These amendments apply to participants remaining with FedEx post-spin-off, including Named Executive Officers (NEOs).