Is FedEx owned by the government? (Is this a federal job…)
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FedEx is the largest package delivery company in the United States. It uses planes, ships and trucks to transport packages, cargo and other goods around the world.
Given that its previous name included “Federal”, you might wonder if FedEx has some sort of relationship with the government. I’ve got the answer to this question and more in this post, so be sure to check it out!
Will FedEx become government owned in 2022?
FedEx is listed on the New York Stock Exchange (FDX) and is not owned or controlled by the government as of 2022. It is a for-profit business that makes money by selling products and providing services. Corporate jobs are not government jobs. Although FedEx is not affiliated with the government, it does receive government contracts and subsidies.
To learn more about FedEx’s relationship with the government, be sure to check out the rest of this article!
Who owns the federation fast recursion?
FedEx is a privately owned and operated company.
Frederick W. Smith is the founder, chairman and chief executive officer of FedEx Express. In addition, he is the company’s largest shareholder, holding 7.3% of the outstanding shares.
In addition, other influential shareholders include The Vanguard Group, Inc (6.56%), Dodge & Cox (6.29%) and PRIMECAP Management Co. (4.98%).
Additionally, FedEx’s top 16 shareholders collectively own 50% of the company, suggesting that no single shareholder has significant control.
In addition to these major shareholders, the general public owns 18% of the company. While not the majority, smaller investors do have some influence on how FedEx operates.
In addition, FedEx board members hold large stakes in the company, controlling about $4.6 billion of the company’s $61 billion market value.
Is FedEx considered a government job?
As a for-profit public company, FedEx jobs fall under the private employment category. In other words, FedEx jobs are not considered government jobs.
Does FedEx accept government funding?
As a private company, FedEx typically does not receive government funding.
That said, the company received $60 million from the federal government (U.S. Department of Health and Human Services) in 2020 to increase its medical supply transportation options.
Does the government subsidize FedEx?
Although FedEx is a private company, it does receive government support in the form of tax subsidies.
So even though the company made billions of dollars, it had a three-year effective tax rate of -0.1% and asked the IRS to refund $5 million.
The official corporate tax rate is 35%, but FedEx can earn billions of dollars worth of tax credits from plane purchases and other deductions.
Does FedEx have a government contract?
Likewise, while FedEx is a private company, it benefits from government contracts. FedEx, for example, won $10.3 billion in federal contracts between 2006 and 2012.
In addition, FedEx benefits from the privatization of Post Office because it provides air shipping for all USPS Express and Priority Mail shipments.
In fact, the USPS pays FedEx more than $1 billion annually for these services.
What’s more, FedEx is the only private courier company approved to place inboxes at the post office.
That is, this arrangement allows the company to compete directly with USPS for express mail service.
Is FedEx considered a utility?
A utility is a government agency that performs a public good function (eg, electricity, water, sewer) but is not considered a government agency.
Therefore, as a private company centered on shipping and logistics, FedEx is not considered a utility.
What government agency oversees FedEx?
Although FedEx is privately owned and operated, the company must comply with applicable local, state and federal laws enacted by various government agencies.
Given the scope of its business, FedEx has many departments within the government to be responsible for.
As such, FedEx is accountable to the Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration for road transportation.
What’s more, FedEx is an authorized interstate motor carrier and has intrastate operations in states that require registration.
In terms of air transportation, FedEx is certified by the Federal Aviation Administration to operate as an all-cargo air carrier.
Additionally, part of this certification includes required driver and crew qualifications, safety training, and a federally approved alcohol and drug testing program.
Finally, FedEx Express has an extensive Hazmat/Hazardous Goods program, including Spill Prevention, Agency Notification, and Proper Disposal.
To learn more, you can also read our posts on FedEx Shipping Instructions, Is FedEx Notarized, and USPS and FedEx.
in conclusion
Although its name suggests otherwise, FedEx is a privately owned and operated company, so FedEx’s work has nothing to do with the federal government.
That said, FedEx does have connections within the government that allow the company to receive tax subsidies and government contracts.
