Who says pleasing fickle investors on Wall Street is hard? FedEx delivered its biggest daily stock jump since the mid-1980s last week, surging more than 14% on June 14 after doing two relatively easy things: The company increased its dividend by a whopping 53% and reached a deal with an activist shareholder to bring on some new board members.
Those decisions by FedEx (FDX) mark one of the first major strategic moves from new CEO Raj Subramaniam, who took over from long-time FedEx head (and founder) Fred Smith. Smith is sticking around as executive chairman.
“Through decades of investments, innovation, and expertise, we have built a global portfolio that serves as the foundation of our competitive advantage. Our focus is to build on this foundation and continue creating long-term value for our stockholders,” Subramaniam said in a statement.
FedEx had been under pressure from activist investor D.E. Shaw Group, which has a small stake in the company, to make some changes.