FedEx Cuts CEO Pay, Sees Negative Covid-19 Impact Despite Higher Demand for E-Commerce

By Matt Grossman

FedEx Corp. on Friday said its chief executive has taken a 91% salary reduction for six months as the company faces the Covid-19 pandemic.

CEO Frederick W. Smith, who is also the chairman of FedEx's board, will earn $10,728 a month until Sept. 30, compared with his previous salary of $115,402 a month.

The Memphis, Tenn.-based global shipper said it expects an overall negative business impact in the U.S. from the pandemic even though demand for e-commerce deliveries is higher due to shelter-in-place orders.

Demand has been elevated in Asia since the middle of March as companies ship backlogs that built up in January and February during China's coronavirus outbreak.

FedEx said it has drawn the entirety of a $1.5 billion credit agreement to bolster its balance sheet during the crisis. It has also added surcharges on international shipments.

As of Friday, the company had $1.5 billion outstanding under credit facilities, $136 million of outstanding commercial paper and $300,000 in outstanding letters of credit, leaving $1.86 billion available under existing credit agreements for future borrowings.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

April 03, 2020 10:23 ET (14:23 GMT)

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