FedEx has announced that Fred Smith, the company's founder, is stepping down as CEO on June 1.
Smith will be replaced by President and Chief Operating Officer Raj Subramaniam.
The company said Smith would become executive chairman.
“FedEx has changed the world by connecting people and possibilities for the last 50 years,” Smith said Tuesday in a news release. “As we look toward what’s next, I have a great sense of satisfaction that a leader of the caliber of Raj Subramaniam will take FedEx into a very successful future.
Smith, who founded the company in 1973, broke the news in a letter to employees, saying the announcement came after "a thoughtful and thorough process."
For years, Smith said he's been recommending to the board that if he were to die or become disabled, they should name Subramaniam as its Chief Executive Officer and appoint an independent chairperson.
Subramaniam has been with the company for more than 30 years.
The company also announced that Brad Martin was appointed vice-chairman of the board and Smith’s designated successor as chairman.