FedExFlyer
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- Oct 29, 2004
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Bonuses, awards for 5 at FedEx nearly $16.8 million
Others also compensated based on 'outstanding year'
By David Flaum
Commercial Appeal - Memphis, TN
July 16, 2005
FedEx Corp.'s top five executives have gotten annual bonuses and three-year incentive awards totaling nearly $16.8 million.
The Memphis-based freight carrier's compensation committee gave four of the five pay raises -- the fifth retired -- and boosted outside directors' pay, according to documents filed with the Securities and Exchange Commission.
"Thousands of FedEx employees received bonuses this year because we had an outstanding year in terms of financial performance," spokesman Jess Bunn said.
Shareholders were rewarded too.
FedEx's share price, $72.53 on June 1, 2004, when the fiscal year started, closed at $89.34 on May 31, the end of the year. During that period, FedEx paid dividends of 28 cents a share.
The biggest chunk of bonus money went to Frederick W. Smith, chairman, president and chief executive officer.
The compensation committee awarded him a $3.34 million bonus for the year ended May 31, based on goals for the company's pretax income. Last month, the company reported $2.3 billion in pretax income for that year, up 75 percent from the previous 12 months.
Other executives received bonuses under a program for headquarters employees.
David Bronczek, president and CEO of FedEx Express, the company's air freight arm, got $1.68 million based on Smith's evaluation of his personal objectives, Express's operating income and pretax income.
Three other executives listed in the filing received their bonuses based on Smith evaluations and pretax corporate income. They were:
Kenneth Masterson, then executive vice president, general counsel and secretary, $1.33 million;
Alan B. Graf Jr., executive vice president and chief financial officer, $1.31 million; and
T. Michael Glenn, executive vice president of market development and corporate communications, $1.22 million.
Separately, as part of a three-year pay program based on increases in per share earnings, Smith was awarded $3 million, Bronczek got $1.5 million and $1.125 million each went to Graf, Glenn and Masterson. Masterson retired June 1.
Per share profits went from $2.34 in 2002 to $4.72 this year. Smith, Bronczek, Graf and Glenn got 3.5 percent boosts in their base pay for the next year.
A National Association of Corporate Directors Blue Ribbon Committee on executive compensation said in 2003 that pay standards should be based on reported financial results of the company.
Executives should be rated on both quantitative measures, such as revenue, earnings, profit margins and stock market performance and qualitative standards such as advancement of company strategy, ethics, community relations and customer satisfaction.
The organization doesn't comment on pay at specific companies, said Doreen Kelly Ruyak, a spokesman.
In addition to the executive bonuses, cash payments to FedEx board members went up, although they will receive options for fewer shares this year -- 5,400 compared with 6,000 in 2004.
No reason was given for the changes.
Many companies are raising directors' pay, Ruyak said. "The time has gone up significantly with the compliance work from Sarbanes-Oxley," she said. Directors now put in as much as 250 hours a year for each board they're on, Ruyak said.
Others also compensated based on 'outstanding year'
By David Flaum
Commercial Appeal - Memphis, TN
July 16, 2005
FedEx Corp.'s top five executives have gotten annual bonuses and three-year incentive awards totaling nearly $16.8 million.
The Memphis-based freight carrier's compensation committee gave four of the five pay raises -- the fifth retired -- and boosted outside directors' pay, according to documents filed with the Securities and Exchange Commission.
"Thousands of FedEx employees received bonuses this year because we had an outstanding year in terms of financial performance," spokesman Jess Bunn said.
Shareholders were rewarded too.
FedEx's share price, $72.53 on June 1, 2004, when the fiscal year started, closed at $89.34 on May 31, the end of the year. During that period, FedEx paid dividends of 28 cents a share.
The biggest chunk of bonus money went to Frederick W. Smith, chairman, president and chief executive officer.
The compensation committee awarded him a $3.34 million bonus for the year ended May 31, based on goals for the company's pretax income. Last month, the company reported $2.3 billion in pretax income for that year, up 75 percent from the previous 12 months.
Other executives received bonuses under a program for headquarters employees.
David Bronczek, president and CEO of FedEx Express, the company's air freight arm, got $1.68 million based on Smith's evaluation of his personal objectives, Express's operating income and pretax income.
Three other executives listed in the filing received their bonuses based on Smith evaluations and pretax corporate income. They were:
Kenneth Masterson, then executive vice president, general counsel and secretary, $1.33 million;
Alan B. Graf Jr., executive vice president and chief financial officer, $1.31 million; and
T. Michael Glenn, executive vice president of market development and corporate communications, $1.22 million.
Separately, as part of a three-year pay program based on increases in per share earnings, Smith was awarded $3 million, Bronczek got $1.5 million and $1.125 million each went to Graf, Glenn and Masterson. Masterson retired June 1.
Per share profits went from $2.34 in 2002 to $4.72 this year. Smith, Bronczek, Graf and Glenn got 3.5 percent boosts in their base pay for the next year.
A National Association of Corporate Directors Blue Ribbon Committee on executive compensation said in 2003 that pay standards should be based on reported financial results of the company.
Executives should be rated on both quantitative measures, such as revenue, earnings, profit margins and stock market performance and qualitative standards such as advancement of company strategy, ethics, community relations and customer satisfaction.
The organization doesn't comment on pay at specific companies, said Doreen Kelly Ruyak, a spokesman.
In addition to the executive bonuses, cash payments to FedEx board members went up, although they will receive options for fewer shares this year -- 5,400 compared with 6,000 in 2004.
No reason was given for the changes.
Many companies are raising directors' pay, Ruyak said. "The time has gone up significantly with the compliance work from Sarbanes-Oxley," she said. Directors now put in as much as 250 hours a year for each board they're on, Ruyak said.
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