FedEx commits to France in massive hub expansion at Charles de Gaulle Airport
Logistics giant FedEx is expanding its distribution hub at Paris-Charles de Gaulle (CDG) Airport in a 30-year agreement costing at least €200 million.
Once completed, this new facility will be one of the world’s most advanced express logistics hubs, featuring technology that will boost package sorting capacity by more than 40 percent. President of the French Republic, François Hollande, was in attendance at the project annoucement.
FedEx Express is the world’s largest express transportation company and a subsidiary of FedEx Corp.
“This investment is part of the company’s network expansion strategy, creating more capacity and enabling more business connections in Europe and around the world,” said David Binks, president, FedEx Express Europe and CEO, TNT. “This new expansion, coupled with the recent TNT acquisition, supports the evolving needs of our customers and the global marketplace while increasing our ability to support trends like cross-border e-commerce.”
Construction is set to begin in the summer of 2017 and the facility is scheduled to be operational by 2019. Upon completion, the CDG hub will include an automated sorting system for large, over-sized packages, which is a worldwide first for FedEx Express and an increasing market trend as e-commerce continues to grow.
The new building will be HQE and BREEAM certified, which means that it will be built with non-polluting materials and equipped with LED lighting. In conjunction with this major investment, FedEx anticipates the expansion will create new positions, adding to the current workforce at CDG.
“At FedEx, we have the ability to pick up, transport and deliver an item from 95 percent of the people on the planet, and most every business in the world, within one to two business days,” said David Bronczek, president & CEO, FedEx Express. “This strategic expansion in Paris is n example of how we will continue to invest to move goods faster and more reliably across borders, which means our customers can decrease costs, improve their supply chain and identify new opportunities for growth and profitability.”
FedEx Express has been active in France since 1985, with CDG becoming its main European hub in 1999 and the largest FedEx hub outside of the US. In addition, the company’s hub in Cologne, Germany and the TNT hub in Liege, Belgium will be maintained as significant operations for the group moving forward.
TNT will soon open a ground hub just North of Paris in the Ile de France region along with three TNT ground depots. The investment in the TNT network will also improve connectivity between France, Europe, and the rest of the world.
FedEx has made significant investments in France over the past years, including opening 19 stations since 2011 and acquiring the French domestic carrier Tatex in 2012. FedEx now has a presence in 48 French cities.
More than half of FTSE 100 execs suffer pay cuts, freezes
Pay increases for many executives at the largest UK firms have been put on hold since the start of the pandemic with more than half of the FTSE 100 CEOs having had their salaries frozen in 2021, according to new research from PwC.
The research, based on PwC’s analysis of the first 50 FTSE 100 firms to publish their 2021 annual remuneration reports, reveals that 53% of CEOs and 52% of CFOs have had their pay reviews put on hold, compared to 35% and 30%, respectively, last year, pointing to the pandemic as the main reason.
According to Phillippa O’Connor, reward and employment leader at PwC, the current environment and impact of the pandemic has clearly led shareholders to sharpen their pencils when reviewing executive pay levels this year.
“It is clear from the pay outcomes we have seen to date in the FTSE 100 that companies have exercised restraint when it comes to both determining outcomes for the 2020 performance year and settling pay on a forward-looking basis for 2021,” says O’Conoor.
Bonuses, grants and pensions also affected
But that’s not all. Around a third (31%) of companies either waived, cancelled or reduced their 2020 annual bonuses, with the average payout dropping from just uhnder £1.1m to £843,000.
When it comes 2021 long-term incentive plan (LTIP) grants, these have also been revised in light of the economic impact of the pandemic with 45% of firms making some adjustment to their award, including retaining discretion to adjust outcomes at vesting in respect of windfall gains, reducing grant size, delaying the grant, and even canceling the award altogether.
The study shows that pension levels for incumbent CEOs remain at 15% of their salary, falling to 10% for new hires, bringing them in line with the wider workforce. Eight out of 10 FTSE 100 companies will have aligned incumbent pension levels with those for the wider workforce by the end of 2022.
O’Connor warns that moving forward into AGM season, there is likely to be added scrutiny around any pay rises that are greater than those for the wider workforce and on incentive outcomes that are “either not aligned with business performance or do not take into account the company’s approach towards matters such as diviends and government support”.
What announcements did UK's big firms make?
Back in April 2020, as the pandemic was just getting started, a number of UK companies, mainly insurance and banking stepped forward to review remuneration packages in response to the economic implications of the COVID-19 crisis.
British insurance giant Aviva announced that basic pay increases for its executive directors and the Aviva leadership team would be paused, while the executive directors of Prudential offered that their salaries be reduced and RSA confirmed its exec directors and executive committee would not be receiving cash bonuses for the current year.
The same was true in banking and finance with TSB announcing that its 10-strong executive committee would give up their bonuses in 2020, while Barclays said its chief executive, finance director and chairman would each give a third of their fixed pay for the next six months to charities. Lloyds cancelled its bonus payments and pay reviews in 2020
Other big UK firms including Ryanair, Taylor Wimpey and Rentokil all committed to reducing their executives pay packages.