FedEx Founder Frederick Smith Dies at 80, CEO Announces His Passing

FedEx Corp’s founder and former CEO Frederick W. Smith, who established the global delivery giant in the 1970s, has passed away, according to a note from CEO Raj Subramaniam to employees posted on the company’s website on Saturday.

Born in 1944, Smith, a former officer in the United States Marine Corps during the Vietnam War, founded Federal Express in 1973 with 389 employees and 14 small planes that transported 186 packages from Memphis to 25 destinations across the United States. He served as CEO until 2022, when he resigned and handed the role to Subramaniam, then the company’s operations chief.

“Fred was more than just the pioneer of an industry and the founder of our great company. He was a mentor to many and a source of inspiration to all,” Subramaniam wrote in his memo.

FedEx’s operations now include 705 aeroplanes, over 200,000 vehicles and nearly 5,000 operating locations. The company employs approximately 500,000 people worldwide and handles about 17 million shipments daily.

Smith’s Net Worth

Smith had a net worth of $ 6 billion, according to Celebrity Net Worth. Regarded as one of the world’s most successful transportation entrepreneurs, he launched Federal Express in 1973 with a $ 4 million inheritance (equivalent to approximately $ 23 million today) and subsequently raised $ 91 million in venture capital. By that year, the company operated 14 jets serving 25 cities in the United States.

His total compensation as CEO in 2008 was $ 10.4 million, including a base salary of $ 1.4 million, a cash bonus of $ 2.7 million and $ 5.5 million in stock options. In 2009 he received over $ 7.7 million in compensation. He resigned as CEO in March 2022 and became executive chairman, with Subramaniam succeeding him as CEO.

Smith, a co-owner of the NFL’s Washington Commanders, served on the boards of the Mayo Foundation and St Jude Children’s Research Hospital. He was inducted into the Aviation Hall of Fame. After George W. Bush’s election, he was reportedly offered the role of US Secretary of Defense but declined.