Teamsters Urge FedEx Investors To End CEO Domination Of Board

Poor Stock Performance and High Executive Pay Make Case for Independent Board Leadership Proposal; Overcommitted Lead Independent Director is No Substitute for Independent Board Chair

WASHINGTON, Sept. 10, 2012 /PRNewswire-USNewswire/ -- The International Brotherhood of Teamsters are calling on FedEx [NYSE: FDX] shareholders to support its proposal for independent board leadership at the company's annual meeting Sept. 24, 2012. The proposed reform has received increased support from investors since it was first introduced in 2007. Last year, 42 percent of outside investors supported the resolution for an independent chairman of the board.

(Logo:  http://photos.prnewswire.com/prnh/20100127/IBTLOGO)

ISS and Glass Lewis, the leading proxy voting advisory services are recommending shareholders to vote for the Teamsters shareholder proposal.

"After more than 40 years, its time Fred Smith loosen his grip on the FedEx board," said Ken Hall, General Secretary-Treasurer of the International Brotherhood of Teamsters.  "Having Smith as CEO and chairman of the board has lead to excessive executive pay and poor performance over the long term for investors."

Over the past three and five-year periods, FedEx stock underperformed both the S&P 500 index and its main competitor, UPS.  Yet, as the company seeks to cut costs across the company, Fred Smith's pay increased from $7.26 million in fiscal 2011 to $13.68 million, driven by massive non-equity incentive compensation that jumped $6.2 million over the prior year. 

"Shareholders need a strong and independent voice in the boardroom to hold management accountable and provide proper strategic oversight and guidance," Hall added. "While the company's focus has been to reduce costs by restructuring and cutting jobs, it seems the sky is the limit when it comes to CEO pay."

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