FedEx Names CEO, Chairman for Spun-Off Freight Unit
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FedEx Corp. for its soon-to-be-independent less-than-truckload freight division, with longtime executive John Smith tapped as CEO and veteran board member R. Brad Martin as chairman.
The appointments will take effect after the separation of FedEx Freight from FedEx Corp., which the company expects to complete by June 2026. The move, announced in December, will create the largest LTL carrier in North America.
Smith currently serves as chief operating officer for U.S. and Canada operations. His responsibilities include oversight of parcel and LTL surface operations. He previously served as FedEx Freight president and CEO from 2018 to 2021.
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Smith has spent more than 30 years in the transportation industry and 25 with FedEx Freight or its predecessor companies. and has held roles in operations, sales, transportation, fleet maintenance and safety.
Martin, vice chairman of the FedEx Corp. board and chair of its Audit and Finance Committee, will serve as chairman of the board for the stand-alone FedEx Freight. He led the strategic review that resulted in the decision to spin off the division and is expected to retain his seat on the FedEx board while taking on his new role.
“I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin,” FedEx CEO Raj Subramaniam said.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and FedEx Freight is No. 1 on the LTL carriers list. FedEx also ranks No. 2 on the TT Top 50 list of the largest global freight carriers. FedEx Logistics ranks No. 43 on the TT Top 100 logistics companies list.
FedEx leaders say the split will help both companies focus more on their markets while continuing to cooperate on areas like logistics and technology.
FedEx Freight posted $9.4 billion in revenue during fiscal 2024 and has grown operating profit by an average of nearly 25% annually over the past five years, according to company filings. FedEx said the new company will start with a strong balance sheet to support growth in the competitive LTL market.
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Martin, also chairman of RBM Venture Co., has held leadership roles at several public companies, including as CEO of Saks Inc. and interim president of the University of Memphis. He also chairs the executive committee at Westrock Coffee Co. and previously served as board chair for Chesapeake Energy.
Smith is a graduate of Northwestern State University and serves on the board of the American Transportation Research Institute. He was named treasurer of American Trucking Associations’ board in 2019.
As part of the preparations for the spin-off, FedEx earlier appointed Tom Connolly vice president of LTL sales. Connolly, who has more than 30 years of industry experience, is tasked with expanding the unit’s dedicated sales force.
FedEx has said the two companies will continue to collaborate through commercial agreements after the separation. The new entity will continue operating under the FedEx Freight name.
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