Shareholders vote at 2019 Fedex meetup

Fedex shareholders stayed the course at their annual meeting in Memphis, as only proposals backed by the company’s board of directors received a majority vote in favor on Monday.

Shareholders of the Memphis logistics giant voted in favor of the four proposals Fedex’s board of directors approved and rejected two proposals from stockholders calling for change, according to voting results.

In remarks after the voting, Chairman and CEO Fred Smith reiterated what he and other executives said in last week’s earnings call. A global economic slowdown has walloped Fedex Express, Fedex’s largest company, which is still adding up costs integrating TNT Express in Europe.

Here’s a rundown of the six proposals Fedex shareholders voted on.

Election of directors

By majority vote, Fedex shareholders approved the reelection of the 12 current members of the board of directors. This includes Chairman Fred Smith, Fedex’s CEO and founder. The other Fedex board of directors members are as follows:

❚ John A. Edwardson, former chairman and chief executive officer, CDW Corp.

❚ Marvin R. Ellison, president and chief executive officer, Lowe’s Companies Inc.

❚ Susan Patricia Griffith, president and chief executive officer, The Progressive Corp.

❚ John C. (“Chris”) Inglis, professor, U.S. Naval Academy

❚ Kimberly A. Jabal, chief financial officer, Unity Technologies

❚ Shirley Ann Jackson, president, Rensselaer Polytechnic Institute

❚ R. Brad Martin, chairman, RBM Ventures

❚ Joshua Cooper Ramo, vice chairman, co-chief executive officer, Kissinger Associates Inc.

❚ Susan C. Schwab, professor, University of Maryland School of Public Policy

❚ David P. Steiner, former chief executive officer, Waste Management Inc.

❚ Paul S. Walsh, chairman, Compass Group PLC

Executive compensation

In a non-binding, advisory vote, Fedex shareholders approved the compensation plan for the company’s executive officers. This includes stock options, annual incentives and long-term incentive payments for Fedex brass such as Smith, Chief Financial Officer Alan Graf and Chief Information Officer Rob Carter.

According to a regulatory filing Monday afternoon, 74.8% of the voted shares approved the proposal.

Total pay for top Fedex executives dropped this past fiscal year, as Fedex underwent a turbulent stretch and certain goals weren’t met. This led to no payout from Fedex’s 2019 annual incentive compensation plan.

The board said the payment plan helps Fedex keep top executives and align their interests with shareholders’ interests.

Omnibus Stock Incentive Plan

Shareholders approved Fedex’s 2019 Omnibus Stock Incentive Plan, the successor to the 2010 edition of the compensation plan for equity incentive awards. The board said the 2019 plan helps create long-term equity incentives that are flexible to regulatory changes while also protecting stockholder interests.

The filing said 92.9% of voted shares were for the proposal.

Ernst & Young as accounting firm

Fedex shareholders voted to ratify Ernst & Young as the company’s independent registered public accounting firm for fiscal year 2020. Ernst & Young audited Fedex’s fiscal year 2019 financial statements, and the firm has been

Fedex’s external auditor since 2002.

More than 98% of voted shares were for the proposal.