FedEx NYSE: FDX shareholders elected all 11 director nominees and approved the company’s executive compensation proposal at its annual meeting, while rejecting three shareholder proposals concerning board leadership, special-meeting rights and risks tied to transporting abortion drugs.
The company said preliminary results showed shareholders also ratified Ernst & Young LLP as FedEx’s independent registered public accounting firm for the transition period from June 1, 2026, through Dec. 31, 2026. Final voting results are expected to be reported in a Form 8-K filing with the Securities and Exchange Commission.
Brad Martin, chairman of the FedEx board, led the virtual meeting, which included the election of directors through the 2027 annual meeting. Raj Subramaniam, FedEx’s president and CEO, and Gina Adams, executive vice president, general counsel and corporate secretary, also participated.
Shareholder Proposals Rejected
None of the three shareholder-sponsored proposals won approval.
- A proposal seeking an independent board chair was presented by Matt Prescott, president and COO of The Accountability Board Inc. Prescott said Institutional Shareholder Services and Glass Lewis had recommended support for the measure.
- A proposal from shareholder John Chevedden called for the company to allow holders of a combined 10% of outstanding common stock to call a special shareholder meeting. Chevedden argued that FedEx’s existing shareholder right to call such a meeting was not meaningful.
- A proposal submitted by IWP Capital on behalf of the Catholic Diocese of Fort Worth sought a report on risks related to the distribution of abortion drugs.
Pia de Solenni, IWP Capital’s vice president of corporate engagement, said FedEx’s role in the transportation of regulated products could expose the company to legal and reputational risks related to shipments of mifepristone and other abortion drugs.
In response, Adams said FedEx is “a transportation and logistics provider, not a manufacturer, distributor, prescriber, or dispenser of pharmaceutical products.” She said the company transports regulated products under applicable laws, regulations and customer agreements, and that the board believes its current risk-management and compliance processes are appropriate.
CEO Cites Transformation Progress and Cash Flow
Subramaniam said FedEx delivered strong fiscal 2026 results despite what he described as significant industry headwinds and global trade shifts. He credited the company’s transformation initiatives, including Network 2.0 and Tricolor, with helping create a more flexible, intelligent and agile network.
“Our ongoing digital transformation supported internal efficiencies, a better customer experience, and our ability to build smarter and more resilient supply chains,” Subramaniam said.
He said more centralized network planning and the company’s One FedEx strategy reduced fiscal 2026 capital expenditures to $3.8 billion, or 4% of revenue. Subramaniam called that the lowest capital-expenditure level as a percentage of revenue in company history.
FedEx generated record adjusted free cash flow during the year and returned about $2.2 billion to shareholders, according to Subramaniam. He also said the company completed the spinoff of FedEx Freight and hosted an Investor Day that outlined its strategy and calendar 2029 targets.
Fuel, Tax and Fleet Questions
During the question-and-answer portion, Chief Customer Officer Brie Carere said FedEx updates its fuel surcharge weekly, with a lag of less than two weeks, to manage potential margin effects from changes in fuel prices. She said fuel-surcharge capture remained high and that the company had not seen an impact on demand to date.
Interim CFO Claude Russ said FedEx would provide an update during its Oct. 28 earnings call regarding the company’s tax rate following the One Big Beautiful Bill Act. Russ directed investors seeking details on aircraft additions and retirements to the company’s investor-relations website and statistical book.
About FedEx (NYSE:FDX)
FedEx Corporation NYSE: FDX is a global transportation, e-commerce and business services company. Through its operating companies, FedEx provides package delivery, freight transportation, logistics, supply chain management and related services for businesses, governments and consumers.
The company's offerings include time-definite express shipping, ground delivery, less-than-truckload freight transportation, customs and international trade support, warehousing, fulfillment and other logistics solutions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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