FedEx Corp. stock was up nearly 9% Tuesday, June 14, after the Memphis-based company announced three directors to its board following negotiations with an activist investor. 

The company also announced it would increase its quarterly dividend by more than 50%.

The two new directors are Amy Lane and Jim Vena, moves that follow activist pressure from the D. E. Shaw group, a New York-based multinational investment management firm. 

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Also, a third independent director mutually agreed upon by the company and the D. E. Shaw group will be added to the board later.

“We are pleased to welcome Amy and Jim to the FedEx Board,” said FedEx CEO Raj Subramaniam in a prepared statement. “They both possess skills and experience that will be valuable to the board as we oversee the execution of our strategy and financial objectives.

“We appreciate the collaboration with the D. E. Shaw group, a long-time FedEx stockholder, with whom we have maintained an ongoing and constructive dialogue in reaching this agreement.”

The announcements came just weeks after FedEx founder and longtime CEO Frederick Smith was replaced by Subramaniam. 

The board declared a quarterly cash dividend of $1.15 per share on its common stock following what it called a “detailed review.”

“Through decades of investments, innovation, and expertise, we have built a global portfolio that serves as the foundation of our competitive advantage,” Subramaniam said. “Our focus is to build on this foundation and continue creating long-term value for our stockholders.”

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This represents a $0.40 per share — or 53% — increase from the previous dividend of $0.75. The dividend is payable on July 11 to stockholders of record as of the close of business on June 27.

“The increased dividend we announced today is the culmination of our Board’s thoughtful efforts over many months to ensure that our capital allocation strategy reflects our confidence in the trajectory of the business and increases returns for our stockholders,” FedEx chief financial officer Michael C. Lenz said in Tuesday’s release. 

“We look forward to sharing more detail on our strategy and long-term objectives at our investor day later this month.”

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Michael O’Mary, managing director at the D. E. Shaw group, applauded both moves.

“We are appreciative of the constructive approach taken by Raj and the FedEx board of directors,” O’Mary said. “We believe that today’s board enhancements and changes to the executive compensation program position the company well to deliver on its plan to drive significant value for all stockholders.”

Lane serves as a director of NextEra Energy Inc. and TJX Cos. Inc. From 1997 to 2002, she was a managing director and group leader of the global retailing investment banking group at Merrill Lynch & Co. Inc.

Vena, who has more than 4o years of railroad experience, most recently served as chief operating officer of Union Pacific Corp. from January 2019 to December 2020, and then as a senior advisor to the chairman at Union Pacific.

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“We look forward to the company further detailing its plans to enhance stockholder value at the investor day later this month,” O’Mary said.

With the addition of Lane and Vena and the expected retirement of Shirley Ann Jackson at the expiration of her term “due to the mandatory retirement provision of the company’s corporate governance guidelines,” the FedEx board will comprise 14 directors, 12 of whom will be independent, following the company’s 2022 Annual Meeting of Stockholders.