NEW YORK—FedEx Corp traders authorised billionaire Chief Govt Fred Smith’s $54 million pay plan on Monday on the supply firm’s annual assembly, however rebuffed the company board’s suggestions on shareholder proposals on lobbying and outsized government severance packages.
Buyers authorised by greater than 50 p.c non-binding proposals for extra disclosures on the corporate’s lobbying and for shareholder voting on senior administration severance packages that pay out greater than roughly thrice wage and bonus, generally known as “golden parachutes.”
The investor help is a part of a sea change this 12 months as prime funds throw extra of their weight behind shareholder challenges to firms on environmental, social, and governance (ESG) points.
“It’s clear mainstream traders have had sufficient with FedEx and its publicity to darkish cash politics,” mentioned Michael Pryce-Jones, senior company governance analyst on the Worldwide Brotherhood of Teamsters, which sponsored the lobbying proposal. “Partial disclosure solely begs the query: what are you hiding?”
FedEx mentioned in an emailed assertion it could “take into account the outcomes of the vote because it evaluates (its) disclosure and compensation practices.”
The Teamsters labor union, which has been bargaining on behalf of FedEx staff at a freight facility, had additionally urged that traders reject Smith’s pay. The union mentioned his pay package deal amounted to “double dipping” as a result of Smith acquired inventory choices as an alternative of a money bonus final 12 months after the pandemic hit, after which was additionally awarded the money bonus.
FedEx mentioned in a supplementary securities submitting this month that the board’s compensation committee made “choices in real-time, primarily based on one of the best data out there.”
The lobbying proposal asks FedEx to organize a report up to date yearly on its political expenditures at native, state, and federal ranges. FedEx mentioned it supported enterprise and regulatory actions that additional its enterprise aims.
The severance payout proposal, submitted by investor John Chevedden, says traders ought to be protected against golden parachute payouts.
By Jessica DiNapoli