The Wizard of Fedex
03-06-2023 | 09:11 AM
#21
Gets Weekends Off
Joined: Apr 2020
Posts: 132
Likes: 0
03-06-2023 | 09:41 AM
#22
Aspiring PSA Captain
Joined: Sep 2020
Posts: 1,144
Likes: 197
https://capital.com/fedex-activist-i...-price-de-shaw
A quick google search yields a bunch on the topic. Though they own under 1% of the shares, yet they have clearly established a voting bloc on the board - a bloc that is influential enough that sitting directors agreed to dilute their own influence in order to give it to DE Shaw. I'd love to know how these other BOD members were "influenced".
Last edited by Merle Haggard; 03-06-2023 at 09:52 AM.
03-06-2023 | 11:49 AM
#23
New Hire
Joined: Feb 2023
Posts: 7
Likes: 0
https://www.cnbc.com/2022/06/14/fede...-to-board.html
https://capital.com/fedex-activist-i...-price-de-shaw
A quick google search yields a bunch on the topic. Though they own under 1% of the shares, yet they have clearly established a voting bloc on the board - a bloc that is influential enough that sitting directors agreed to dilute their own influence in order to give it to DE Shaw. I'd love to know how these other BOD members were "influenced".
https://capital.com/fedex-activist-i...-price-de-shaw
A quick google search yields a bunch on the topic. Though they own under 1% of the shares, yet they have clearly established a voting bloc on the board - a bloc that is influential enough that sitting directors agreed to dilute their own influence in order to give it to DE Shaw. I'd love to know how these other BOD members were "influenced".
It would be interesting to find out if the announcement to utilize additional belly freight via pax carrier coincided with the addition of Gorman. Even if it did, it could just be a coincidence. Hard to tell.
DE Shaw wants returns on their investment. The stock hasn’t performed so well since they initially vetted FedEx, so I would think they are going to demand substantial changes occur (DRIVE?) to boost margins and drive up the share price. Taking a meat cleaver to staffing has this effect. Last round of layoffs seemed to boost the share price.
03-06-2023 | 12:43 PM
#24
Thread Starter
Line Holder
Joined: Apr 2021
Posts: 52
Likes: 0
From: Below Decks
Yes they are! As others have posted, the board is putting pressure on the company to transform itself and reduce costs. FedEx has retained McKinsey to help in the structuring of those cost savings initiatives known as Drive. As the article notes, their means of cost savings can be quite harsh. More details of Drive will be disclosed at the shareholders/pilot meeting on April 5th. Guess we’ll get a better picture of the future then.
03-06-2023 | 01:52 PM
#25
Gets Weekends Off
Joined: Nov 2017
Posts: 2,174
Likes: 1
DE Shaw wants returns on their investment. The stock hasn’t performed so well since they initially vetted FedEx, so I would think they are going to demand substantial changes occur (DRIVE?) to boost margins and drive up the share price. Taking a meat cleaver to staffing has this effect. Last round of layoffs seemed to boost the share price.
The Time for Scope Is Now!
Last edited by FXLAX; 03-06-2023 at 01:55 PM. Reason: Clarity
03-06-2023 | 04:08 PM
#27
Gets Weekends Off
Joined: Sep 2007
Posts: 1,506
Likes: 0
From: 777 Captain in Training
I guess we “the company and investors” have forgotten what made us millions and saved the world was OUR lift capability. You know all the belly freight opportunities dried up during COVID!!!, when NO passenger airlines were flying. They would be crazy to rely on that capability to carry the lions share of our freight!
Don’t fall for the hype. Industry leading and no concessions!
Don’t fall for the hype. Industry leading and no concessions!
03-06-2023 | 04:17 PM
#28
Line Holder
Joined: Mar 2021
Posts: 1,768
Likes: 28
I guess we “the company and investors” have forgotten what made us millions and saved the world was OUR lift capability. You know all the belly freight opportunities dried up during COVID!!!, when NO passenger airlines were flying. They would be crazy to rely on that capability to carry the lions share of our freight!
Don’t fall for the hype. Industry leading and no concessions!
Don’t fall for the hype. Industry leading and no concessions!
"laser focused on execution, and right sizing"
"looking forward, not in the rear view mirror"
"optimizing"
etc etc McKinseyisms
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