FedEx eliminates an annual bonus payout for executives this year, cites tough business
FedEx executives and other top brass won’t receive a certain annual bonus this fiscal year, due to what the company calls “challenging business conditions.”
The Memphis logistics giant said in an SEC filing Thursday that no company officers or staff directors will receive a payout from its 2019 annual incentive compensation plan this fiscal year.
The disclosure comes after FedEx eliminated funding for the 2019 AIC plan due to results below its expectations. AIC payouts are based on internal company objectives, the amount based on a percentage of base salary, per past SEC filings.
Chairman, CEO and founder Fred Smith’s fiscal 2019 target payout was to be 165% of his base salary, according to FedEx’s 2018 proxy statement, up from 2018’s target payout. In 2018, he received an AIC payout of $1.65 million, below the target amount of $1.88 million.
Read more: https://www.commercialappeal.com/story/money/industries/logistics/2019/06/07/fedex-eliminates-bonus-payout-executives-including-fred-smith/1382872001/
I suspect that the parting of ways with Amazon also had an impact on the decision.