Reuters

Exclusive-FedEx faces labor union challenge over billionaire CEO’s pay

FedEx Corp shareholders should reject founder and CEO Fred Smith’s $54 million pay package because the logistics company gave him stock options after scrapping a cash bonus in the wake of the COVID-19 pandemic, only to reinstate it later, the Teamsters labor union said on Friday. Smith, whose net worth is pegged by Forbes at $5.8 billion, was given a special option award “for motivation and retention purposes” in June 2020 after FedEx canceled a $3.4 million cash bonus for him, citing uncertainty around the COVID-19 pandemic. Those options were worth $6.4 million as of the end of May, the close of FedEx’s fiscal year, more than doubling in value since Smith received them.

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