FedEx Freight President Lance Moll will retire Jan. 31 as the nation’s largest LTL carrier prepares for a spinoff from the parcel giant, the company announced Friday.
Moll will wrap up his 33-year tenure with FedEx by shifting into an executive advisor role until July 31, the company said.
The company had previously planned to have Moll lead FedEx Freight through the separation to ensure focus and a seamless transition, CEO Raj Subramaniam told investors.
Instead, John Smith, COO of U.S. and Canada surface operations for FedEx Freight and FedEx Ground, will run the LTL carrier beginning next month until a new CEO is named. Smith previously led FedEx Freight and FedEx Ground as CEO of each unit.
“Lance has been a key member of the FedEx Freight leadership team during his more than three-decade tenure,” said Smith, who led the LTL for three years, in the announcement.
“He is a clear expert on the industry and a true champion of the things that have brought FedEx Freight so much success in recent years: safety above all, communication drives progress, and innovation is key to differentiation,” Smith added. “I am deeply grateful for his service and leadership and wish him the best in his well-deserved retirement.”
Moll’s retirement comes after the company slashed spending at the LTL carrier last year ahead of officially announcing the spinoff. The much-anticipated spinoff is expected to have ripple effects on the rest of the industry, particularly given FedEx’s — and FedEx Freight’s — scale.
Smith will work closely with FedEx’s Separation Management Office, which is overseeing the separation of Freight, the company said.
But Moll’s retirement magnifies the question of whom FedEx might select to lead the carrier as a spun-off company, if not him or Smith.
A permanent leader is likely to be announced within the next year or two: The spinoff remains on track to be executed within 18 months, the company said.
“I think it’s all part of the spinning off,” said Satish Jindel, a FedEx veteran and LTL industry consultant, in an interview Friday. “You may see some more changes come between now and 18 months, when they spin it off.”
