New CFO Makes a Bold Move
FedEx, the renowned logistics firm, recently announced disappointing earnings, causing its stock to plummet. However, amidst this downturn, the newly appointed Chief Financial Officer, John Dietrich, made a noteworthy decision to purchase shares.
On December 19, FedEx reported that its fiscal second-quarter earnings per share and sales fell short of expectations. Despite maintaining its EPS guidance for the fiscal year at $17 to $18.50, investors remained unconvinced. The stock dropped by 12% on the following trading day to reach $246.25. To potentially revive market confidence, FedEx unveiled a plan to buy back $1 billion of its stock from Mizuho Markets Americas on December 26. This move is usually seen as a positive boost, yet FedEx stock continued to languish.
John Dietrich displayed his faith in the company's future by investing $252,000 on December 28 to acquire 1,000 FedEx shares at an average price of $252.02 each. According to regulatory filings with the Securities and Exchange Commission, Dietrich currently holds 4,745 shares.
Unfortunately, Dietrich was not available for comment regarding his investment. He took over as FedEx's finance chief on August 1, succeeding Michael Lenz, who retired on July 31. Previously, Dietrich served as the CEO of Atlas Air Worldwide, a leading outsourced aircraft and aviation company that went private in March.
FedEx has specific stock-ownership guidelines for senior management members. According to these guidelines, they are expected to possess shares valued at three times their annual base salary within a five-year period after joining the company. As of now, Dietrich's annual base salary stands at $919,000, and his current FedEx shares are valued at approximately $1.2 million. Although he is not currently in compliance with the guidelines, he has adequate time to rectify this.
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