FedEx CEO sets course after founder Fred Smith’s death

FedEx CEO Raj Subramaniam is defining his own leadership approach a year after the death of company founder Fred Smith. The shift matters because FedEx sits close to global trade tensions and supply chain disruption, moving almost 19 million packages a day, according to Fortune.

In a June interview at FedEx’s Memphis headquarters for Fortune’s Titans and Disruptors podcast, Subramaniam described the current period as one of “re-globalization.” Fortune Editor-in-Chief Alyson Shontell reported that he used the term to describe disruption tied to geopolitical conflict, tariffs and other pressures on supply chains.

Subramaniam is the second chief executive in FedEx’s 53-year history, Fortune reported. He took over the top job in 2022 after a long rise through the company, beginning in an entry-level role and later serving as president and chief operating officer.

A transition after Smith

Smith died a year ago at age 80, leaving Subramaniam without a longtime mentor and adviser, according to Fortune. Subramaniam told Shontell that succeeding a founder of Smith’s stature was both an honor and a challenge.

“I always say that I can see far because I’m standing on the shoulders of a giant,” Subramaniam said, according to Fortune. Shontell reported that Smith had prepared him for the CEO role over a period of years as Subramaniam moved through senior jobs at FedEx.

Subramaniam also told Fortune that the job changed once he formally became CEO. “When the time came, I said, ‘I can do this,’” he said. “But no, the whole thing changed … This is a whole different level.”

Fortune reported that requests and demands from many directions forced Subramaniam to turn down more things and narrow his focus. To do that, he set aside time to write his own description of the CEO role and define key performance indicators for himself.

Culture as a priority

One of those priorities was preserving the company culture Smith created, Fortune reported. Subramaniam said he told Smith when he became CEO that FedEx would change in many ways, including through new technology, new employees or acquisitions, but that its culture would remain central.

“One thing that is not going to change is the FedEx culture, and that’s why I came to work here in the first place,” Subramaniam said, according to Fortune.

Shontell reported that the broader podcast discussion also covered the origins of FedEx’s AI-powered data business, which Fortune said began with an idea from a young employee that reached the CEO. The interview placed that work alongside Subramaniam’s broader effort to lead FedEx through trade uncertainty while holding to the operating culture associated with Smith.

This story draws on original reporting from Fortune.