FedEx Corporation (FedEx Express) (Memphis) on January 26, 2018 three three major programs following the recently enacted U.S. Tax Cuts and Jobs Act:
1) Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance-based incentive plans for salaried personnel.
2) A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
3) Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States.
The company has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017, as a result of these actions.
Copyright Photo: FedEx Express Boeing 767-3S2F ER N121FE (msn 43545) SAN (Michael B. Ing). Image: 932269.
FedEx Express aircraft slide show: