Shares of FedEx Corporation (NYSE: FDX) are up nearly 15% on Tuesday after the transportation company announced a significant increase in its dividend and added new directors to the board.
FedEx raised its quarterly dividend by 53%
The American multinational, this morning, declared $1.15 a share of quarterly dividend that translates to a more than 50% increase versus the previous payment.
Also on Tuesday, FedEx said an agreement with its long-term stockholder D.E. Shaw will see three new directors joining the board. Amy Lane and Jim Vena are two it has already named, while the third is yet to be known.
FedEx is scheduled to report its quarterly financial results on June 23rd. The stock is still down nearly 30% from its all-time high in May 2021.
What else did FedEx announce on Tuesday?
Mostly recently, Vena has served as the COO at Union Pacific while Lane is a director at TJX Companies. In the press release, Michael O’Mary – Managing Director at the New York-based hedge fund said:
Today’s Board enhancements position FedEx well to deliver on its plan to drive significant value for all stockholders. We look forward to the Company further detailing its plans to enhance stockholder value at its investor day.
FedEx also introduced changes to the executive compensation programme on Tuesday. The announcements come only days after Raj Subramaniam replaced Fred Smith as the CEO of the NYSE-listed company.
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