FedEx Amends Executive Long-Term Incentive Plans Ahead of Freight Spin-Off and Fiscal Year Change

summarizeSummary

FedEx has amended its long-term incentive plans for executives to account for the upcoming spin-off of FedEx Freight and a change in the company's fiscal year end.

check_boxKey Events

• LTI Plan Amendments Approved

  The Board of Directors approved amendments to the FY25–FY27 and FY26–FY28 long-term incentive (LTI) plans.

• Performance Measurement Adjusted

  Actual performance under each LTI Plan will be measured through the end of FY26, with target performance assumed for the remaining period of each plan.

• Payout Calculation Revised

  Payouts will be calculated using a weighted average of actual performance measured through FY26 and target performance for the remainder of the applicable plan period.

• Driven by Spin-off and Fiscal Year Change

  These amendments were made in consideration of the planned spin-off of FedEx Freight and the change in the Company's fiscal year end, both effective June 1, 2026.

auto_awesomeAnalysis

The amendments to FedEx's long-term incentive plans are a necessary adjustment to ensure executive compensation remains aligned with performance during the significant corporate transition of spinning off FedEx Freight and changing the fiscal year end. By blending actual performance through FY26 with target performance for the remaining plan periods, the company aims to maintain executive focus and motivation through these strategic changes. This provides clarity on how executive incentives will be calculated amidst the restructuring.