Memphis-based FedEx Corp. announced three “major programs” that would total more than $3.2 billion in investments as a result of The U.S. Tax Cuts and Jobs act.
According to the Memphis Business Journal These programs include:
• $200 million in increased compensation: Two-thirds will be allocated to hourly employees by advancing the 2018 annual pay increase to April 1 rather than the normal October increase date. The remaining funds will go toward increases in performance-based incentive plans for salaried employees
• $1.5 billion voluntary contribution to the FedEx pension plan
• $1.5 billion investment to expand the FedEx Express Indianapolis hub over the course of the next seven years. Plans also call for the modernization and enlargement of the Memphis SuperHub. FedEx plans to announce those details in spring 2018.
FedEx Corp. employs more than 400,000 people across the world. In 2017 it reported $60.3 billion in annual revenue. In second quarter 2018, the company reported $16.3 billion in revenue.
FedEx Corp. is one of Memphis’ largest employers, employing more than 30,000 people in the greater Memphis area. (Memphis Chamber of Commerce)
Since 1973, FedEx has contributed significantly to Memphis, advancing it as a major shipping hub and creating an identity for the economy. Factors like Memphis’ location and the government’s willingness to cooperate with the company made it very attractive for Fred Smith and his company.