Today, the International Brotherhood of Teamsters mailed a letter to FedEx Corp. (NYSE: FDX) shareholders urging a vote against the board’s “Say on Pay” proposal at the September 23, 2019 annual shareholder meeting and against Compensation Committee Chair Paul Walsh who has served on the committee for over 21 years.

The letter challenges FedEx’s reliance on a two-decade old approach to long-term pay, arguing that it is overly generous and ill-equipped to delivering long-term value in the current environment.

In the letter, Teamsters General Secretary-Treasurer Ken Hall details how FedEx executives benefit from lowballed earnings-per-share (EPS) growth targets that have remained unchanged for over two decades. This is even as analysts routinely project higher EPS growth for FedEx and investors increasingly question whether earning-per-share is an appropriate measure, particularly in capital intensive industries such as freight.

The letter also criticizes the FedEx Board’s Compensation Committee for increasingly aggressive adjustment of earnings measures used in its pay plans. Over the past five years, half a billion dollars of legal costs incurred from the company’s operational and employment practices at FedEx Ground have been excluded in the calculation of incentive payouts. At the same time, billions of dollars associated with the protracted integration of TNT Express have been backed out of the earnings calculation.

Over the past five years, CEO Fred Smith has received compensation valued at $110 million in compensation.