Change FedEx To Win: FedEx plans to scrap employee bonuses this year Incentives program expected to be casualty of economic downturn

FedEx plans to scrap annual incentive bonuses this year, an austerity move that would cost some employees thousands of dollars depending on their pay grades.
The annual incentive compensation (AIC) program, which bases year-end bonuses on percentages of employee pay, is expected to be one casualty of a $1.5 billion shortfall in revenue in the fiscal year ending May 31.
“The international macroeconomic weakness and resulting revenue shortfall no longer support AIC funding, and our expectation is that there will be no AIC payout this year,” FedEx Corp. executive vice president and chief financial officer Alan B. Graf said in a note to employees Tuesday, March 19.
It’s unclear what the action will cost FedEx’s Memphis area employees, who number about 30,000 out of 450,000 FedEx employees worldwide.