FedEx President and CEO Raj Subramaniam’s compensation totaled $13.2 million for fiscal year 2023 — his first year in the role.
The Memphis company filed its annual proxy statement for the past fiscal year — that ended May 31 — this month. In 2022, Subramaniam made $5.1 million in total compensation for fiscal year 2022 during his last year as president and chief operating officer of the Memphis-based logistics giant.
The proxy statement included executive salaries, several of whom received raises this year, and the CEO pay ratio for fiscal year 2023. FedEx compensation includes base salary, bonuses, incentive plans, restricted stock and option awards.
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Fiscal year 2023 was a tough one for FedEx, which spent the majority of the year searching for ways to save and cut costs due to the current economic climate. That included a combination of lessening operations, layoffs and furloughs throughout the company and rolling out its consolidation plan of FedEx Express, Ground and Services in April.
Several FedEx top executives received pay raises through the company’s long-term incentive plan payout for the three-year period that ended May 2023. Long-term incentive plan payouts are worth millions for FedEx’s top executive officers.
The company had to reach a minimum earnings-per-share goal set by the board of directors for them to receive any of the payout. This was the first time since fiscal year 2019 this occurred.
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FedEx founder, chairman and previous CEO Fred Smith earned a compensation package of $8.1 million for fiscal year 2023.
That’s a decrease from the compensation package of $10.6 million Smith totaled in fiscal year 2022 — his final as CEO. Subramaniam succeeded Smith in his new role at the end of fiscal year 2022.
Mike Lenz, who retired as FedEx chief financial officer July 31, earned a compensation package of $6 million for fiscal year 2023. That’s an increase from his total compensation of $3.9 million in fiscal year 2022.
Rob Carter, FedEx Information Services and chief information officer, also received an increase in compensation from fiscal year 2022 ($3.4 million) to fiscal year 2023 ($5.7 million).
Mark Allen, FedEx executive vice president general counsel and secretary, received a compensation package of $5.4 million in 2023.
FedEx also disclosed the company’s CEO pay ratio in the proxy statement. For the fiscal year ending May 31, Subramaniam made 272 times the median employee’s pay of $45,976.
The previous fiscal year, Smith, then CEO, made 271 times the median employee’s pay of $39,177.
Subramaniam’s compensation included $15,226 in employer-provided health benefits, with the median employee’s total including $9,832 in employer-provided health benefits.
In 2022, the average S&P 500 CEO made 272 times as much as the median employee, according to the AFL-CIO. The S&P 500 is a stock market index of major companies.
Omer Yusuf covers the Ford project in Haywood County, FedEx, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on X, @OmerAYusuf.
This article originally appeared on Memphis Commercial Appeal: An average FedEx worker makes about $46K while the CEO makes 272 times that. Breaking it down
