Fedex CEO Frederick Smith Steps Down Raj Subramaniam to Succeed

Published: 01/21/2026
Leadership Transition FedEx Logistics Industry
FedEx announced a leadership transition, with founder Fred Smith stepping down as CEO and assuming the role of Executive Chairman. Raj Subramaniam will succeed him as CEO. Smith reflected on FedEx's 50-year history and expressed confidence in Subramaniam's capabilities. Subramaniam stated his commitment to upholding FedEx's core values and leading the company to a brighter future. This leadership change marks the beginning of a new development phase for FedEx.
Fedex CEO Frederick Smith Steps Down Raj Subramaniam to Succeed

Imagine a business founder who transformed his vision from blueprint to reality over half a century, growing from 14 planes delivering 186 packages to a global empire spanning 220 countries and territories handling 16.5 million shipments daily. This is not just a commercial miracle but a legendary tale of innovation, foresight, and succession. Now, this visionary is turning a new page as FedEx prepares to welcome a new captain to steer the logistics giant toward an even brighter future.

FedEx recently announced a significant leadership transition plan, marking a new developmental phase for the Memphis-based global freight and logistics leader. Effective June 1, founder and CEO Frederick W. Smith will step down as chief executive and transition to executive chairman. Current president and chief operating officer Raj Subramaniam will assume the roles of president and CEO. This succession plan heralds a new era for FedEx after five decades of remarkable achievements.

"Over the past 50 years, FedEx has changed the world by connecting people and possibilities," Smith said in a statement. "Looking ahead, I have great confidence that an outstanding leader like Raj Subramaniam will take FedEx into a very successful future. As executive chairman, I look forward to focusing on board governance as well as the global issues most important to our company, including sustainability, innovation, and public policy."

The Architect of a Global Empire

Smith built FedEx from the ground up, creating a textbook case of how to establish and grow one of the world's most successful and recognizable companies. Founded in 1973 with the goal of serving the rapidly growing high-tech, high-value economy, FedEx has grown into a $92 billion behemoth serving more than 220 countries and territories worldwide.

As chairman and CEO, Smith oversaw strategic direction for all FedEx operating companies, including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services (encompassing FedEx Office, FedEx Logistics, and FedEx Dataworks). The company operates nearly 700 aircraft, over 2,100 vehicles, and more than 5,200 operating facilities. Perhaps most impressively, FedEx employs nearly 600,000 team members who handle more than 16.5 million shipments daily.

The Successor's Journey

Subramaniam, who previously served as president and CEO of FedEx Express and joined the FedEx board in 2020, will continue as a board member. He joined FedEx in 1991 and has held various leadership roles including executive vice president and chief marketing and communications officer, president of FedEx Canada, and other management and marketing positions in Asia and the U.S.

"Fred is a visionary leader and a legend of the business world. He founded one of the world's greatest and most admired companies, and I am honored to have the opportunity to follow in his footsteps," Subramaniam said. "As we continue to transform and reimagine what's next, we will stay true to the values that he embedded in the company: People-Service-Profit. I have great pride in our 600,000 team members worldwide. Together we came up with ideas to change the world, and together we will unlock new value for our people, customers, and shareholders."

A Milestone Transition

In a letter to FedEx employees, Smith reflected on the company's journey from its humble beginnings to becoming a global connector that changed how the world operates.

"On April 17, 1973, FedEx began operations with 389 team members who delivered 186 packages via 14 aircraft," he wrote. "We were a small startup, and there were plenty of skeptics. But that first night of operations began a journey that would ultimately turn us into a global connector that changed the world by connecting people with possibilities. While I'm immensely proud of what we've built, I'm not one for looking backward. We must always look forward. So, as we enter our 50th year of operations, I'm very pleased to announce that I will be stepping down as CEO and assuming the role of executive chairman of the board on June 1. I can make this decision with confidence because I can hand the CEO role of this great company to an outstanding leader like Raj Subramaniam."

Smith highlighted Subramaniam's three decades of experience in key global leadership roles across FedEx operating companies, noting his strategic contributions as chief marketing officer and his character as "a brilliant and humble individual" with deep compassion for stakeholders.

Industry Reactions

The industry response to the succession plan has been overwhelmingly positive, with widespread praise for Smith's legacy and accomplishments.

American Trucking Associations president and CEO Chris Spear called Smith "the greatest figure in trucking and transportation," noting how he built FedEx from nothing into one of the world's most iconic and innovative companies.

John Larkin, a strategic advisor at Clarendon Capital, described Smith as "a living legend in transportation and logistics" and "a great American" whose innovations accelerated global supply chains.

Ben Gordon, managing partner at Cambridge Capital, called the announcement "the end of an era," noting Smith's 50-year tenure as an industry-defining icon while expressing confidence in the leadership transition.

Looking Ahead

As executive chairman, Smith said he would focus on various issues related to freight and logistics, including sustainability, public policy, and innovation. He expressed particular excitement about being able to travel more extensively to meet with FedEx team members worldwide—something the pandemic had prevented in recent years.

This leadership transition represents more than just a personnel change—it's a strategic positioning for FedEx's future. Building on Smith's foundation, Subramaniam will guide the company through continued innovation and challenges. Meanwhile, Smith will continue contributing to FedEx's development and the advancement of global logistics in his new role.

The succession also offers valuable insights for other enterprises: visionary leadership must be paired with robust succession planning to ensure sustainable development and continued success in competitive markets.

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