A U.S Securities and Exchanges Commission (SEC) document filed by the corporation details the salary reduction. Smith’s pay is to go from US$115,402 to US$10,728 per month. However, due to taxation, charitable donations, and other deductions, his net salary will effectively be $1 for each pay period.
This made for a massive decrease from 2019 when Smith’s basic salary stood at around $1.4 million. The business journal reports that according to the delivery giant’s most recent proxy statement—along with other compensations received—the CEO’s total pay for the period of last year was nearly $16 million.
In addition to the credit line, the company has also stated that it believes itself to be eligible for specific grants and relief efforts currently put in place by the U.S. government.
“The Covid-19 pandemic and resulting significantly weaker global economic conditions have negatively impacted our results of operations and are expected to continue to impact our business, results of operations, cash flows, and liquidity,” FedEx stated.
However, it's not all bad news, though, as certain parts of the economy have seen a slight increase in the wake of the CCP (Chinese Communist Party) virus, commonly known as the novel coronavirus. While the business-to-business side of the corporation has seen a decrease as a result of European and U.S. shutdowns, residential delivery service has increased.
“Demand for FedEx Ground residential delivery services has increased, due to sharp increases in e-commerce volume,” the company said. However, “the shift in mix is expected to negatively impact margins and operating results,” the company further added.