You probably know that FedEx is one of the world’s largest delivery services. With over 450,000 employees and annual revenues of more than $87 billion, it’s not hard to see why FedEx is such a successful company.What you might not know, however, is that the FedEx CEO salary is $14.2 million/yr. Here is an insider’s perspective on how the company might be able to afford this hefty salary for its CEO.
FedEx Overview
FedEx intends to maintain a sizable part of the industry with its slew of subsidiary companies. There are approximately 2,000 FedEx Office locations around the world where packages can be dropped off and picked up, making it the world’s most popular express delivery service. It has a fleet of 690 planes and more than 50,000 automobiles and trailers under maintenance.
FedEx Ground offers small-package ground delivery in North America in addition to express delivery, and FedEx Freight, a less-than-truckload carrier, transports larger shipments. Additionally, FedEx Office locations function as retail hubs for other FedEx units by providing a wide range of document-related and business services.
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- FedEx’s official website may be accessed at www.fedex.com.
- Size: 10000+ Employees
- The company was founded in 1973
- Type: Company – Public (FDX)
- Industry: Express Delivery Services
- Total annual revenue: almost $10 billion (USD)
The CEO Salary at FedEx
FedEx has a CEO who earns a hefty sum of money each year. The fedex ceo salary is more than enough to cover an entire year of salaries for 500 employees at their current salary rate! How does FedEx afford this salary?
To answer that question, let’s break down some numbers from FedEx’s most recent earnings report. In 2016, the company brought in a total of $12.5 billion in revenue with a net income of more than $691 million. With these numbers, it’s easy to see how the company could afford such a generous salary for their CEO.
When you take into account expenses like advertising and shipping costs that are associated with each business, it becomes clear why FedEx can afford its CEO’s annual salary.
What is the average FedEx salary?
The average FedEx salary is $28,841 to $133,578 per year. Yes, you read that right. The average FedEx salary is lower than the national median household income in the United States.
The first thing to note is that the company does have a huge workforce, which allows it to be successful at a lower salary for its employees. Secondly, it has a high-profit margin – which means that it doesn’t have to worry about paying out too much in salaries. The company’s profit margin in 2014 was 5.10%. Now you’ll see why FedEx can pay a higher FedEx ceo salary despite having lower-paid employees on average.
Why is FedEx making so much money?
FedEx is making so much money because they offer one of the most efficient services in the world. They can do this by offering a variety of services that include package delivery, freight, international logistics, and e-commerce solutions.
One of their most valuable assets is their aircraft fleet. FedEx owns an average of about 650 aircraft. This is one of the reasons why the company can make so much money each year.
How does this affect the company’s stability?
The CEO of FedEx indeed has an annual salary of $14.2 million. But how does this affect the company’s stability? The answer is simple: it doesn’t. The mega-successful company has stayed afloat because it can afford to pay its CEO such a large sum of money. As mentioned before, FedEx has over 450,000 employees and annual revenues of more than $87 billion.
This means they have enough resources to keep the business thriving even if their CEO’s salary is higher than what others are paying their CEOs. And this could be one explanation for why FedEx can pay their CEO such a large salary–their success over the years has allowed them to work that much harder to stay successful.
They know they can afford to take on risks by paying their top executive more because they will still be successful no matter what happens.
Is this excessive?
At first glance, the salary might seem excessive. But when you take into account all of the different factors, it doesn’t seem out of line for this position. FedEx has to pay for a lot more than just their CEO’s salary.
This is just one example of how a high-level executive can be compensated fairly while still being able to continue to grow the company and provide jobs for many employees. The bottom line is that this isn’t overcompensation at all.
Conclusion
In Memphis, TN, FedEx’s main headquarters. After taking into account all of the different aspects of this situation, it becomes clear that FedEx’s CEO is being compensated fairly. FedEx has a workforce of more than 450,000 employees and annual revenues of $87 billion.
This means they have a lot more to offer in terms of compensation than other companies at similar levels. All in all, the salary is not overcompensation because it allows FedEx to be successful and continue to grow its business.