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FedEx Surges Most Since 1986 on Activist-Backed Overhaul Plan

  • Courier names new directors in deal with investor D.E. Shaw
  • Dividend hike, other changes come weeks into new CEO tenure
A fuel nozzle in a FedEx delivery truck in Chevron gas station in San Francisco, California, U.S., on Tuesday, March 29, 2022. California Governor Gavin Newsom's proposal to give $400 to every car owner to offset record-high gasoline prices has prompted criticism that it undercuts the states aggressive climate goals.
A fuel nozzle in a FedEx delivery truck in Chevron gas station in San Francisco, California, U.S., on Tuesday, March 29, 2022. California Governor Gavin Newsom's proposal to give $400 to every car owner to offset record-high gasoline prices has prompted criticism that it undercuts the states aggressive climate goals.Photographer: David Paul Morris/Bloomberg
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FedEx Corp.’s shares soared the most in almost 36 years after the courier hiked its dividend and announced board changes in coordination with activist investor D.E. Shaw & Co., a bold shakeup just two weeks into the tenure of new Chief Executive Officer Raj Subramaniam.

The quarterly dividend will jump 53% to $1.15 per share, the Memphis, Tennessee-based company said Tuesday in a statement. That’s well above the 87-cent prediction by Bloomberg analytics. FedEx also said it would cut capital spending and rework its executive compensation program.