The company did not return a request for comment on Bronczek's leave because the policy change would mean he would not succeed with Smith ever. A statement issued yesterday said Bronczek made a "personal decision" to retire. In a SEC filing yesterday, FedEx said that Bronczek's decision was not based on any disagreement with the company's "operations, policies and procedures."
Bronczek's image is no longer displayed on the FedEx website showing its leading leadership. He has also retired from the director's post at International Paper Co. (NYSE: IP).
According to yesterday's submission, Bronczek will receive a cash payment of $ 2.5 million in return to enter into a five-year competition agreement.
Bronczek's retirement paves the way for another Smith prosthesis, Raj Subramaniam, to become the heir's apparent. On March 1
Asked about Subramaniam's effectiveness will be compromised because he will hold six jobs at once, Satish Jindel, head of consultant ShipMatrix, said Subramaniam is a highly efficient leader who shares Smith's vision that "he will bring faster changes to all those organizations more hands-on involvement. "
Subramaniam wants his hands full. FedEx posted quarterly quarterly results and lowered its fiscal 2019 outlook due to issues such as integrating the TNT Express unit and financial weakness in Europe and Asia. Weakness in these markets has continued, says Benjamin J. Hartford, investment analyst for investment firm Baird, in a note today. Hartford maintained a higher FedEx rating, but reduced earnings per share earnings for the 2019 and 2020 financial years.