FedEx CEO's sudden retirement prompts BAML downgrade
FEDEX Express president and CEO David Cunningham, 57, sudden plans to retire at the end of the year roiled markets, prompting a down grade by Bank of America Merrill Lynch (BAML)
FEDEX Express president and CEO David Cunningham, 57, sudden plans to retire at the end of the year roiled markets, prompting a down grade by Bank of America Merrill Lynch (BAML).
FedEx stock has lost more than 16 per cent of its value in the last week following the news.
'The company made a surprising change to its Express CEO, which we believe could signal a reduction or delay in its profit improvement target,' said BAML analyst Ken Hoexter.
'This is a rapid and, in our view, out-of-character change for a company that is still operated by its founder, chairman and CEO Fred Smith,' he said.
Mr Cunningham will be succeeded by FedEx Corporation executive vice president and director of marketing Raj Subramaniam, effective January.
Mr Subramaniam, who is a 27-year veteran of FedEx, started his career with the company in 1982 on the FedEx Express World Hub operation in Memphis. He then worked in Hong Kong, where he was responsible for marketing and customer service for Asia Pacific.
He then took the presidency of FedEx Express in Canada before returning to the United States as senior vice president of international marketing. He was then promoted to senior vice president of marketing for FedEx Services in 2013, Mumbai's STAT Trade Times reported.
Mr Cunningham has been FedEx Express' president and CEO since early 2017. In his current role, he has been responsible for FedEx Express Group leadership, which includes FedEx Express and TNT.
'Throughout his distinguished 36-year career at FedEx, David Cunningham has contributed to the growth of our company around the world and we wish him all the best for his retirement,' said FedEx Corporation chief operating officer David Bronczek.
Brie Carere, who has been with FedEx for 17 years, succeeds Raj Subramaniam in his role at FedEx. Ms Carere is currently senior vice president of global portfolio marketing for FedEx Services.