By Mike Esterl 

FedEx Corp. tapped air cargo chief David Bronczek to become company president in 2018, further positioning him as a candidate to succeed Chief Executive Fred Smith.

The delivery giant also announced Monday that Michael Glenn, head of market development, would retire at the end of December for family reasons.

Messrs. Bronczek and Glenn, in addition to Chief Financial Officer Alan Graf, have been viewed inside and outside FedEx as potential successors to Mr. Smith, who is 72 years old and founded the company in 1971.

Mr. Smith hasn't indicated he plans to retire any time soon. A FedEx spokesman declined to comment on succession plans.

Memphis, Tenn.-based FedEx doesn't have a mandatory retirement age for executives. Last year its board raised the mandatory retirement age for directors to 75 from 72. Mr. Smith holds the titles of chairman, president and CEO.

"I think Fred will stay active as long as he decides to stay active," said Jack Atkins, a transport analyst at Stephens Inc.

Mr. Bronczek, 62, has been president of FedEx Express, the company's largest unit, since 2000. He joined FedEx in 1976, holding positions in operations and sales before becoming general manager for Canada in 1987 and head of Europe, the Middle East and Africa in 1993.

FedEx said Mr. Bronczek will become chief operating officer in January 2018, when he also will assume the title of president. A new head of FedEx Express will be named in the fall of 2017.

Mr. Glenn, 61, joined FedEx in 1981 and has held management positions in sales and marketing. He assumed his current position in 1998 and is responsible for marketing, sales, customer service and retail operations.

Mr. Smith praised Mr. Glenn as "the most brilliant marketer" he has ever met, adding in a statement that his departure represents "a tremendous loss" for FedEx.

Mr. Bronczek has won praise for improving profit margins at FedEx Express in recent years despite a softening global economy.

The Cleveland native and Kent State University graduate also has been overseeing the integration of TNT Express NV, the Dutch parcel delivery company that FedEx acquired for nearly $5 billion in May. Mr. Bronczek will continue to oversee the integration until assuming his new responsibilities.

Mr. Graf, the CFO, also is viewed as a potential successor to Mr. Smith. Mr. Graf, 63, joined the company in 1980 as a senior financial analyst and has held several management positions in the finance division.

Mr. Atkins, the analyst, said Mr. Bronczek appears to be positioned as "the most logical internal candidate" to succeed Mr. Smith. Much could still change in the next years and FedEx's next CEO also could be hired externally, he added.

Write to Mike Esterl at mike.esterl@wsj.com

 

(END) Dow Jones Newswires

September 27, 2016 02:48 ET (06:48 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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