FedEx 8-K

Summary

Executive severance plan and special executive bonuses. FedEx approved a plan for future executive separations, replacing its existing Management Retention Agreements. It also approved one-time special cash bonuses for eligible managing directors and above, citing fiscal 2026 transformation results and execution.

Key Figures

• For qualifying terminations without cause or for good reason, cash severance is based on base salary plus target cash bonus: 2× for the CEO, 1.5× for executives with at least 10 years of service, and 1× for other executives. Within 24 months after a change of control, the multiplier is 2× for all executives.
• Other qualifying-termination benefits include a prorated annual bonus, an 18-month cash payment tied to the difference in health-plan premiums, and outplacement and tax preparation services. Benefits require a release and restrictive covenants; continued benefits cease, and paid severance may be recovered, if those covenants are violated.
• CEO retirement support may be provided for up to three years, capped at $0.25M per fiscal year and $0.75M in total, as in-kind services under a consulting agreement.
• One-time bonus pool covers approximately 1,100 eligible employees. July 2026 payments: CEO Rajesh Subramaniam, $1.9M; Brie A. Carere, $0.85M. FedEx cited above-plan adjusted consolidated operating income and structural cost savings exceeding its $1B public target, among other fiscal 2026 achievements.