UPDATE: FedEx shares soar 8.8% premarket after company raises quarterly cash dividend by 53% to $1.15 a share

FedEx Corp. said Tuesday it is increasing its quarterly cash dividend by 53% to $1.15 a share from 75 cents previously. The new dividend is payable July 11 to shareholders of record as of June 27. The move is part of a series of actions aimed at improving shareholder value, the company said in a statement. Those include adding a total shareholder return performance metric to its executive compensation program. The LTI (long-term incentive) program also includes a capital expenditures as a percentage of revenue (CapEx/Revenue) performance metric. The CapEx/Revenue target metric in the new LTI program is lower than in prior years to align with FedEx’s capital plans for fiscal years 2023 through 2025, and the Company expects to further lower its capital intensity in subsequent years,” said the statement. The company is further adding two new independent directors to its board as part of an agreement with hedge fund D.E. Shaw. FedEx shares soared 8.8% premarket, but are down 22% in the year to date, while the S&P 500 has fallen 21%.

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