Please ensure Javascript is enabled for purposes of website accessibility

FedEx CFO to Retire Before Year's End

By Lou Whiteman - Mar 9, 2020 at 5:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The long-time chief financial officer will stay on to help his successor transition into the role.

FedEx (FDX -3.04%) said Monday night that long-serving chief financial officer Alan Graf would retire later this year, leaving it to his successor to complete a massive overhaul of the business designed to help it to better-compete with a new generation of transport specialists.

Graf, 66, started with FedEx in 1980 and has been CFO since 1998. He intends to stay on until Sept. 22, 2020, and remain at the company as an executive vice president and senior advisor through year's end to help with the transition.

A FedEx cargo plane awaiting takeoff.

Image source: FedEx.

In a statement released Monday, FedEx founder, chairman, and CEO Fred Smith said Graf "helped build and transform this company." Graf will be replaced by current treasurer Mike Lenz, who has been with the company since 2005.

It has been a difficult period for FedEx, with shares down more than 40% over the past three years due to increased competition from one-time customer, as well as the impact of trade wars, tariffs, and more recently the COVID-19 coronavirus. Shares of FedEx closed down more than 9% on Monday, pressured by growing fears that the outbreak would lead to a recession that will slice demand for shipping services.

Graf's retirement is also likely to refocus attention on succession planning at FedEx. Smith, who is 75, has recommended chief operating officer Raj Subramaniam as his future replacement, but says he wants to see through the turnaround he has been orchestrating, and a recovery in the stock, price before he exits. An extended slowdown due to coronavirus would likely push that recovery back quarters, if not years.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

FedEx Corporation Stock Quote
FedEx Corporation
$226.71 (-3.04%) $-7.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.