FedEx to Promote Air Cargo Chief David Bronczek to President -- Update
September 26 2016 - 3:09PM
Dow Jones News
By Mike Esterl
FedEx Corp. tapped air cargo chief David Bronczek to become
company president in 2018, further positioning him as a candidate
to succeed Chief Executive Fred Smith.
The delivery giant also announced Monday that Michael Glenn,
head of market development, would retire at the end of December for
family reasons.
Messrs. Bronczek and Glenn, in addition to Chief Financial
Officer Alan Graf, have been viewed inside and outside FedEx as
potential successors to Mr. Smith, who is 72 years old and founded
the company in 1971.
Mr. Smith hasn't indicated he plans to retire any time soon. A
FedEx spokesman declined to comment on succession plans.
Memphis, Tenn.-based FedEx doesn't have a mandatory retirement
age for executives. Last year its board raised the mandatory
retirement age for directors to 75 from 72. Mr. Smith holds the
titles of chairman, president and CEO.
"I think Fred will stay active as long as he decides to stay
active," said Jack Atkins, a transport analyst at Stephens Inc.
Mr. Bronczek, 62, has been president of FedEx Express, the
company's largest unit, since 2000. He joined FedEx in 1976,
holding positions in operations and sales before becoming general
manager for Canada in 1987 and head of Europe, the Middle East and
Africa in 1993.
FedEx said Mr. Bronczek will become chief operating officer in
January 2018, when he also will assume the title of president. A
new head of FedEx Express will be named in the fall of 2017.
Mr. Glenn, 61, joined FedEx in 1981 and has held management
positions in sales and marketing. He assumed his current position
in 1998 and is responsible for marketing, sales, customer service
and retail operations.
Mr. Smith praised Mr. Glenn as "the most brilliant marketer" he
has ever met, adding in a statement that his departure represents
"a tremendous loss" for FedEx.
Mr. Bronczek has won praise for improving profit margins at
FedEx Express in recent years despite a softening global
economy.
The Cleveland native and Kent State University graduate also has
been overseeing the integration of TNT Express NV, the Dutch parcel
delivery company that FedEx acquired for nearly $5 billion in May.
Mr. Bronczek will continue to oversee the integration until
assuming his new responsibilities.
Mr. Graf, the CFO, also is viewed as a potential successor to
Mr. Smith. Mr. Graf, 63, joined the company in 1980 as a senior
financial analyst and has held several management positions in the
finance division.
Mr. Atkins, the analyst, said Mr. Bronczek appears to be
positioned as "the most logical internal candidate" to succeed Mr.
Smith. Much could still change in the next years and FedEx's next
CEO also could be hired externally, he added.
Write to Mike Esterl at mike.esterl@wsj.com
(END) Dow Jones Newswires
September 26, 2016 14:54 ET (18:54 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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