FedEx has promoted Raj Subramaniam to president and CEO effective 1 June 2022, replacing founder Fred Smith who will take on his seat as executive chairman.

An industry veteran of more than 30 years, Subramaniam joined FedEx in 1991 where he worked his way up from management and marketing roles throughout Asia and the US to become the president of FedEx Express in Canada.

The 54-year-old chief also served as executive vice president and chief marketing and communications officer of FedEx Corp., where he was responsible for developing the corporate strategy.

Prior to the latest promotion, Subramaniam was the president and chief operating officer of FedEx Corp. He also held the president and chief executive post at FedEx Express prior to that.

In 2020, Subramaniam was elected to the company’s board of directors where he will maintain his seat along with the other board directors.

Fred Smith, who founded the company back in the 70s with a dozen planes and whom Raj described as a ‘legend’ of the business world’, will take on his new role as executive chairman, where he will focus on Board governance and global issues, including sustainability, innovation, and public policy

FedEx said Smith and Subramaniam will both report directly to the Board, and the chief operating officer position that the latter has left ‘will not be backfilled’.

“Fred is a visionary leader and a legend of the business world,” Subramaniam said. “He founded one of the world’s greatest and most admired companies, and it is my honor and privilege to step into this role and build upon what he has created.”

FedEx shares inched up around 5 percent the day after the announcement was made, Reuters reported.