Frederick W. Smith
From Wikipedia, the free encyclopedia
| Frederick Wallace Smith | |
| Born | August 11, 1944 Marks, Mississippi |
|---|---|
| Nationality | American |
| Occupation | founder of FedEx |
| Employers | FedEx Corporation |
| Title | chairman, president and CEO |
| Salary | $6.17 million |
| Parents | Frederick C. Smith |
Frederick Wallace Smith (born August 11, 1944), or Fred Smith, is the founder, chairman, president, and CEO of FedEx, originally known as Federal Express, the first overnight express delivery company in the world, and the largest in the United States. The company is headquartered in Memphis, Tennessee.
Contents |
[edit] Early years
| Frederick W. Smith | |
|---|---|
| Born August 11, 1944 | |
| Allegiance | United States of America |
| Service/branch | United States Marine Corps |
| Rank | Captain |
| Battles/wars | Vietnam War |
| Awards | Silver Star, Bronze Star, Purple Heart (2) |
Smith was born on August 11, 1944 in Marks, Mississippi, the son of Frederick C. Smith, the founder of the Dixie Greyhound Bus Lines and Toddle House restaurant chain.[1][2] Frederick C. Smith died when Smith was only 4, and the boy was raised by his mother and uncles.[3]
Smith had a great interest in flying, and became an amateur pilot as a teen. He attended high school at Memphis University School.
In 1962, Smith entered Yale University. While attending Yale, he wrote a paper for an economics class, outlining overnight delivery service in a computer information age. Folklore suggests he received a C for this paper although in a later interview he claims that when asked he told a reporter "I dont know what grade, probably made my usual C". The paper became the idea of FedEx (for years, the sample package displayed in the company's print advertisements featured a return address at Yale). Smith became a member of Delta Kappa Epsilon fraternity and Skull and Bones.[4][5] He received his Bachelor's degree in economics in 1966. In his college years, he was a friend of George W. Bush.[6] Smith was also friends with John Kerry and shared an enthusiasm for aviation with Kerry[7] and was a flying partner with him.
[edit] Marine Corps service
After graduation, Smith joined in the U.S. Marine Corps, serving for four years, from 1966 to 1969, as a Platoon Leader and a Forward Air Controler [FAC], flying in the back seat of the OV-10. Much mythology exists about this part of his life; Smith was a Marine Corps "Ground Officer" for his entire service. He was specially trained to fly with pilots and observe and 'control' ground action. He never went through Navy flight training, was not a "Naval Aviator" or "pilot" in the military. The proof of this is in the fact that individuals who completed Navy flight training and became a "Designated Naval Aviator" (pilot) were obligated to serve six years at the time.
As a Marine, he had the opportunity to observe the military's logistics system first hand. He served two tours of duty in Vietnam, flying with pilots on over 200 combat missions. He was honorably discharged in 1969 with the rank of Captain, having received the Silver Star, the Bronze Star, and two Purple Hearts. While in the military, Smith carefully observed the procurement and delivery procedures, fine-tuning his dream for an overnight delivery service.[8]
[edit] Business career
In 1970, Smith purchased the controlling interest in an aircraft maintenance company, Ark Aviation Sales,[9] and by 1971 turned its focus to trading used jets. On June 18, 1971, Smith founded Federal Express with his $4 million inheritance, and raised $91 million in venture capital. In 1973, the company began offering service to 25 cities, and it began with small packages and documents and a fleet of 14 Falcon 20 (DA-20) jets. His focus was on developing an integrated air-ground system, which had never been done before. Smith developed FedEx on the business idea of a shipment version of a bank clearing house where one bank clearing house was located in the middle of the representative banks and all their representatives would be sent to the central location to exchange materials.[9]
Smith has served on the boards of several large public companies, the St. Jude Children's Research Hospital and Mayo Foundation Boards. He was formerly chairman of the Board of Governors for the International Air Transport Association and the U.S. Air Transport Association. Smith is chair of the Business Roundtable’s Security Task Force, and a member of the Business Council and the CATO Institute. He served as chairman of the U.S.-China Business Council and is the current chairman of the French-American Business Council. In addition, Smith was named 2006 Person of the Year by the French-American Chamber of Commerce. He is a member of the Aviation Hall of Fame. Smith was approached by Senator Bob Dole, who asked Smith for support in opening corporate doors for a new World War II memorial.[10] Smith was appointed to co-chairman of the U.S. World War II Memorial Project. Smith was named as Chief Executive magazine’s 2004 "CEO of the Year".
Smith has served on the boards of several major organizations, including St. Jude Children's Research Hospital, the Mayo Foundation, the U.S. Air Transport Association, the International Air Transport Association (IATA), and the Cato Institute.
A DKE Fraternity Brother of George W. Bush while at Yale, after Bush's 2000 election, there was some speculation that Smith might be appointed to the Bush Cabinet as Defense Secretary.[11] Despite some speculation and even pushing from former Senator and Reagan Chief of Staff Howard Baker, he was not appointed — Donald Rumsfeld was named instead.
Smith is a supporter of Senator John McCain's 2008 Presidential bid, and has been named McCain's National Co-Chairman of his campaign committee.
Mr. Smith was inducted into the Junior Achievement U.S. Business Hall of Fame in 1998.
Smith was presented the 2008 Kellogg Award for Distinguished Leadership by the Kellogg School of Management on May 29th, 2008.[12]
[edit] Quotes from Fred Smith
- "We'd run out of money and we didn't have all the regulatory requirements that we needed. My half-sisters were up in arms because it looked like we were going to lose some money. Everything was going wrong, except the fundamentals of the business were proving every single day that the idea was right."
- "This is a guarantee. If we don't get it there, we don't get paid."
- Credibility... What do we sell? We sell trust. We thought we were selling the transportation of goods. In fact, we were selling peace of mind.
- I think the American Dream is freedom.[9]
[edit] Notes
- ^ http://www.findarticles.com/p/articles/mi_qn4155/is_20050605/ai_n14669376
- ^ Fred Smith 1944— - Early life, The road to fedex, A radical idea, Going global
- ^ Frederick W. Smith Biography: Father of the Overnight Delivery Business
- ^ Alexandra Robbins, Secrets of the Tomb: Skull and Bones, the Ivy League, and the Hidden Paths of Power, Little, Brown and Company, 2002, page 172, 180-1
- ^ "Frederick W. Smith." Contemporary Newsmakers 1985, Issue Cumulation. Gale Research, 1986.
- ^ "Live" with TAE: Frederick Smith
- ^ THE 2004 CAMPAIGN: THE MASSACHUSETTS SENATOR; Idealistic Man on Campus To Realistic Sailor at War
- ^ Frederick W. Smith Biography: Father of the Overnight Delivery Business
- ^ a b c Father of the overnight delevery business
- ^ Former Senator Bob Dole Discusses the New WW II Memorial
- ^ "Bush Takes Break Amid Transitions", Inside Politics, CNN, December 26, 2000. Retrieved on 2007-01-27.
- ^ "Kellogg honors FedEx CEO Fred Smith as Distinguished Leader". Retrieved on 2008-05-30.
[edit] See also
[edit] References
- FedEx Executive Bios. FedEx. Retrieved on 2007-01-27.
- Profile in Fortune Magazine's Innovators Hall of Fame
- Article by Smith on how Fedex came to be, includes the story of the paper he wrote while at Yale.
- USA Today Q&A on his love of history
[edit] Further reading
- Frock, Roger. Changing How the World Does Business: FedEx's Incredible Journey to Success—The Inside. Berrett-Koehler. ISBN 1576754138.
