MEMPHIS, Tenn. (WATN) — As COVID-19 hammers our economy, FedEx founder and CEO Fred Smith is taking a 91% reduction in his salary for the next six months to help his company.
According the Memphis Business Journal, Smith will keep the decreased salary until September 30th. He suggested his pay go from $115,000 per month to less than $11,000 a month. FedEx says after charitable donations and tax deductions, Smith will make $1 per pay period.
This comes as FedEx takes a hit from the COVID-19 pandemic since international business is currently on hold. FedEx also revealed to lenders that it plans to borrow $1.5 billion from a credit agreement to help business operations.
FedEx sent this statement to WATN: “In this uncertain business environment, we’re taking proactive steps to best position FedEx for our employees, customers and shareholders. The debt offering and the Chairman’s voluntary salary reduction will help mitigate the impacts of COVID-19 on FedEx.”