David Bronczek has resigned as President and Chief Operating Officer of FedEx due to personal reasons. Bronczek, 64, was widely seen as next in line to take over from Fred Smith, 74, who is currently serving as CEO.
Bronczek's decision threw Wall Street for a loop due to the sudden nature of the announcement and because Bronczek had joined the company's board just weeks prior. The move could be related to the appointment of Raj Subramaniam who takes over as President and COO effective March 1, 2019. The move immediately catapults Subramaniam to be the favorite to take over when Fred Smith retires.
“On behalf of the Board and management team, we recognize Dave for his years of service to FedEx. FedEx has a deep bench of talent, and I am confident that the transition will be seamless,” said Frederick W. Smith, chairman and chief executive officer, FedEx Corporation. “Raj has significant experience in many areas of our portfolio, which will be vital as he steps into this position.”
Subramaniam will continue to serve as president and CEO of FedEx Express and will also serve as co-president and co-CEO of FedEx Services. Subramaniam has been with FedEx for more than 27 years and has held various executive level positions in several operating companies and international regions.