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FedEx Shareholders Approve Teamster Proposal for Board Reform

Submitted by: International Brotherhood of Teamsters

Categories: Corporate Governance

Posted: Sep 30, 2003 – 12:00 AM EST

 

Shareholders by 2-1 Margin Support Declassifying Board of Directors

Sep. 30 /CSRwire/ - WASHINGTON, DC -- A Teamster shareholder proposal to declassify the FedEx (NYSE: FDX) Board of Directors garnered overwhelming support today at the Company's Annual Meeting. With more than twice as many shareholders voting in favor of the proposal than against it, the company was sent a strong message in favor of corporate governance reform.

The proposal calls for the Board to adopt annual elections for all directors, replacing the company's current practice of Board members serving staggered terms and facing election by shareholders only every three years.

"It's no more business as usual at FedEx," said C. Thomas Keegel, Teamsters General Secretary-Treasurer. "An overwhelming majority of shareholders have voted for Board accountability and are watching to see if the Board adopts this important reform."

Representing the Teamsters General Fund at the FedEx Annual Meeting, Louis Malizia, Teamsters Assistant Director of Corporate Affairs, questioned whether the company would broaden its definition of independence for directors serving on the company's Board. As it stands now, the Board includes "independent" directors who are former executives of FedEx, including Peter Willmott, the former President and COO of FedEx, who currently serves as the Chairman of the Board's Nominating and Governance Committee and on the Board's Audit Committee. The company's response was, "No."

"Having true independent directors helps assure investors that corporate policies are made in the best interests of the company rather than the best interests of executives," said Malizia.

Through its pension and benefit funds, the International Brotherhood of Teamsters has roughly $100 billion invested in the U.S. equity market.

For more information, please contact:

Carin Zelenko International Brotherhood of Teamsters
Phone: +1-202-437-6279

 

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