FedEx Cuts CEO Pay, Sees Negative Covid-19 Impact Despite Higher Demand for E-Commerce
April 03 2020 - 10:38AM
Dow Jones News
By Matt Grossman
FedEx Corp. on Friday said its chief executive has taken a 91%
salary reduction for six months as the company faces the Covid-19
pandemic.
CEO Frederick W. Smith, who is also the chairman of FedEx's
board, will earn $10,728 a month until Sept. 30, compared with his
previous salary of $115,402 a month.
The Memphis, Tenn.-based global shipper said it expects an
overall negative business impact in the U.S. from the pandemic even
though demand for e-commerce deliveries is higher due to
shelter-in-place orders.
Demand has been elevated in Asia since the middle of March as
companies ship backlogs that built up in January and February
during China's coronavirus outbreak.
FedEx said it has drawn the entirety of a $1.5 billion credit
agreement to bolster its balance sheet during the crisis. It has
also added surcharges on international shipments.
As of Friday, the company had $1.5 billion outstanding under
credit facilities, $136 million of outstanding commercial paper and
$300,000 in outstanding letters of credit, leaving $1.86 billion
available under existing credit agreements for future
borrowings.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
April 03, 2020 10:23 ET (14:23 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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