LEADING PROXY VOTING ADVISORS RECOMMEND FEDEX SHAREHOLDERS VOTE FOR TEAMSTERS’ INDEPENDENT CHAIR PROPOSAL
RiskMetrics Group and PROXY Governance, Inc. have recommended that FedEx Corporation (NYSE: FDX) shareholders vote for the Teamsters’ proposal calling for an independent board chairman at FedEx’s annual meeting on September 28, 2009.
This marks the third consecutive year that RiskMetrics has supported the Teamsters’ proposal for an independent chairman at FedEx. In 2008, 34 percent of the vote by shareholders supported the union’s proposal, up from 27 percent in 2007.
In recently released reports, the two leading independent proxy voting advisors cite FedEx’s poor financial performance relative to industry peers and the lack of an effective independent director leadership structure to counterbalance the power of a combined Chairman of the Board/CEO role.
“We’re very pleased that RiskMetrics and PROXY Governance are advocating our call for independent board leadership at FedEx,” said Teamsters General Secretary-Treasurer C. Thomas Keegel. “Shareholders can no longer afford for FedEx’s board to be dominated by founder and CEO Frederick W. Smith.”
In an Aug. 31 letter to FedEx shareholders, Keegel noted that FedEx’s chronic poor performance, excessive executive pay, compromised board independence and effectiveness, and questionable business strategies underscore the need for an independent chairman to lead FedEx’s board in holding management accountable and providing strategic oversight and guidance.
“Under Fred Smith’s leadership, FedEx’s board has rubber-stamped an unlawful and unsustainable business model at FedEx Ground that could ultimately cost the company billions,” said Teamsters General President James P. Hoffa. “Appointing an independent chair at FedEx is long overdue, and we’re glad that RiskMetrics and PROXY Governance support this critical reform.”
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.
