FedEx grants USD32m in options to executives
FedEx Corp. granted its Chairman, President and Chief Executive Officer Frederick W. Smith 250,000 stock options on June 1 with an exercise price of USD89.70 each, according to a federal filing late Thursday. David J. Bronczek, head of FedEx Express, and other officers were granted a total of 114,750 options at the same price. Kenneth Masterson, the company’s former general counsel, retired June 1 and entered into a two-year consulting agreement that includes tickets to Memphis Grizzlies games, a USD65,000 golf club membership and a gift from FedEx of a USD28,347 John Deere tractor . Shares of FedEx rose USD1.06 to USD91.25 Thursday.
The Wall Street Journal has reported that “FedEx Corp. said Thursday that President and Chief Executive Frederick Smith could receive up to $3.75 million under a long-term performance bonus plan the company set up last Thursday. The plan sets a target bonus for Smith at $2.5 million, according to a filing with the Securities and Exchange Commission. Bonuses under the plan depend on acheivement of an aggregate earnings per share goal over the next three years, ending May 31, 2008. David Bronczek, president and chief executive of FedEx Express, could receive a bonus of up to $1.5 million under the plan. His target bonus is set at $1 million, according to the filing. Two other executives, Executive Vice President and Chief Financial Officer Alan Graf Jr. and T. Michael Glenn, the executive vice president of market development and corporate communications, each could receive up to $1.1 million under the plan. Target bonuses for Graf and Glenn are set for $750,000 each. The company also set up annual incentive cash bonus plans last Thursday for executives for the year ending May 31, 2006. Under his plan, Smith could receive up to three times his salary. Smith’s target bonus is 130% of his salary under the plan. The filing didn’t disclose Smith’s salary for the coming year, but an earlier company proxy said Smith’s salary for the year ended May 31, 2004, was $1.24 million.
