FedEx founder Fred Smith will step down as CEO of the company on June 1, 2022, the company said in a news release Monday. He will remain in a top leadership position as the company's executive chairman.

Raj Subramaniam, 54, the current president and chief operating officer of the company will be promoted to CEO and president. The chief operating officer position will not be backfilled.

Smith, 77, who has led FedEx as its chairman and CEO for the vast majority of his tenure, took a rough idea originating from his college term paper and created what would become a transportation giant. FedEx, incorporated in 1971, now delivers millions of packages daily and is worth tens of billions of dollars.

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Analysts had previously viewed Subramaniam as the favorite to succeed Smith as CEO since he was named president and COO in 2019.

Subramaniam became FedEx's second-in-command in March 2019, succeeding Dave Bronczek, who abruptly retired from the position. Subramaniam had just begun his role as president and CEO of FedEx Express, FedEx’s largest company, two months earlier. Don Colleran succeeded him at the helm of Express not long after.

As chairman and CEO, Smith leads the company's board of directors and is responsible for the strategic direction of all of FedEx. Smith stepped down as company president in 2018, a role now held by Subramaniam.

The Memphis-based company always has two successors ready to take over for each of its top 40 or so senior executives, Smith said in 2019.

“My recommendation to the board in the event of my death, which I hope is some time off, or incapacitation, is that Raj become the CEO,” he told Southeastern Asset Management then. “…He understands the company in great detail. He's been in operational roles. He's been in sales roles.”

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Subramaniam, born in Trivandrum, India, joined the company in 1991 and has held various marketing and leadership roles during his tenure. Before that, he was FedEx executive vice president and chief marketing and communications officer from 2013 to 2018. Subramaniam has been a member of the company’s board of directors since January 2020.

“His international leadership experience, keen business insights and focus on globalization have contributed to the success of FedEx and continue to provide a roadmap for future growth initiatives,” his FedEx company biography reads. “Subramaniam is responsible for several landmark developments at FedEx, including the continuing digital transformation of FedEx services, the first-ever global brand campaign, and a significant expansion of the company’s global product portfolio.”

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In a statement Monday, Smith expressed optimism for Subramaniam's pending promotion.

"FedEx has changed the world by connecting people and possibilities for the last 50 years. 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 said.

Greater Memphis Chamber President and CEO Beverly Robertson said Smith "took the kernel of an idea and made it resonate around the world."

“I feel a deep sense of civic pride every time I fly into Memphis and see row upon row of FedEx airplanes. Because of his profound vision, he’s leaving a powerful legacy that has forever changed the trajectory of this company and this city. We will continue to owe him a tremendous debt of gratitude for his contributions to Memphis," Robertson said in a statement Monday.

“Fred Smith couldn't leave his legacy in better hands than those of his successor. We look forward to seeing Raj Subramaniam continue to build on the solid foundation laid by Fred Smith, whose impact will be felt in Memphis for generations to come."

Max Garland, former FedEx reporter at The Commercial Appeal, contributed to this report.

Micaela Watts is a reporter for The Commercial Appeal and can be reached at micaela.watts@commercialappeal.com.

This article originally appeared on Memphis Commercial Appeal: FedEx: Fred Smith to step down as CEO; Raj Subramaniam to succeed him