FedEx reveals three key investments following passing of new US law

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FedEx Corporation has unveiled three major investment programs in response to the recently enacted US Tax Cuts and Jobs Act, a new law signed by US president Donald Trump that made several key changes to the tax treatment of employee benefit plans.

As such, FedEx will invest more than US$200m in increased compensation for its workforce, about two-thirds of which will go to employees on hourly rates rather than full-time salaries.

The remainder will fund increases in performance-based incentive plans for salaried personnel. The company will also make a voluntary US$1.5bn contribution to the FedEx pension plan.

Finally, plans have been unveiled for a new US$1.5bn investment to expand the FedEx Express Indianapolis hub over the next seven years. FedEx’s Memphis SuperHub will also be modernized and enlarged in a major program, the details of which will be announced later this spring.

FedEx believes that the Tax Cuts and Jobs Act is likely to increase GDP and investment in the USA. As such, the company has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017.

January 29, 2018

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Dan joined Postal and Parcel Technology International in 2014 having spent the early years of his career in the recruitment industry. As assistant editor, he now produces daily content for the website and supports the editors with the publication of each exciting new issue. When he’s not reporting on the latest logistics news, Dan can be found apprehensively planning his next DIY project for his new home.

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