U.S. parcel delivery firm FedEx on Tuesday added two directors to its board as part of an agreement with hedge fund D.E. Shaw and raised its quarterly dividend by more than 50%.
The deal also gives the investment firm, which has a stake of less than 1% in FedEx, a say in the appointment of a third director at a later date.
FedEx shares jumped nearly 12%, reflecting a cheerful response to the $1.15 per share dividend that comes even as the industry struggles with high fuel costs and labor shortages.
The new directors are Amy Lane, a former Merrill Lynch executive, and ex-Union Pacific Corp chief operating officer Jim Vena. Their addition brings the board’s strength to 14 directors, 12 of whom are independent.
FedEx has also added total shareholder return as an additional performance metric to its executive compensation program.
“We look forward to sharing more detail on our strategy and long-term objectives at our investor day later this month,” Chief Financial Officer Michael Lenz said in a statement.
FedEx will on June 28-29 host its first investor day under the leadership of Raj Subramaniam, who replaced founder and long-time top boss Fred Smith in June.
FedEx’s fiscal fourth-quarter results are due next week.