The U.S. Postal Service's board of governors has named FedEx board member David Steiner as the agency’s next postmaster general and CEO, board chair Amber McReynolds announced Friday.
“We anticipate that Mr. Steiner will join the organization in July, assuming his successful completion of the ethics and security clearance processes that are currently underway,” McReynolds said during a board of governors meeting.
Steiner, former CEO of Waste Management, has been a member of FedEx's board of directors since 2009. He is currently the logistics giant's lead independent director and chair of the board's governance, safety and public policy committee.
The Postal Service said in a news release following the meeting that Steiner will leave FedEx's board "and manage the other roles and business and financial interests as required prior to joining the Postal Service." The announcement highlighted Steiner’s tenure leading Waste Management, which featured added business lines in environmental services, a new pricing model and more efficient operations.
“I am excited by the challenges ahead and by the many opportunities to shape a vibrant, durable and increasingly competitive future for the Postal Service,” Steiner said in the release.
Steiner is slated to take the helm of the Postal Service in the midst of the agency's 10-year "Delivering for America" plan introduced by former Postmaster General Louis DeJoy in 2021. The plan aims to overhaul the financially ailing agency through various measures, such as launching offerings competing with FedEx and UPS, overhauling transportation processes and adjusting service standards.
“This selection is likely one of the most important and impactful decisions my fellow governors and I will make during our 10 years on the board,” McReynolds said.
Despite its ongoing turnaround efforts, the Postal Service lost $9.5 billion in fiscal year 2024, and President Donald Trump has been considering several potential shifts for the agency to stem the losses. He has expressed interest in placing the Postal Service within the Commerce Department or even privatizing the agency, a scenario that has drawn pushback from Postal Service employees and lawmakers.
“I deeply admire the public service and business mission of this amazing institution, and I believe strongly in maintaining its role as an independent establishment of the executive branch,” Steiner said.
The National Association of Letter Carriers, a Postal Service union, voiced opposition to the appointment of Steiner. His FedEx ties present "a clear conflict of interest," Brian Renfroe, president of the union, said in a statement Tuesday following a Washington Post report about the planned selection.
"His selection isn’t just a conflict of interest—it’s an aggressive step toward handing America’s mail system over to corporate interests," Renfroe said. "Private shippers have been waiting to get USPS out of parcel delivery for years. Steiner’s selection is an open invitation to do just that."
Steiner said in the release that he looks forward to working with Postal Service unions and management associations to “create a world-class employment experience.”
As of July 29, 2024, Steiner owned 34,438 FedEx shares, according to the company's proxy statement. FedEx did not immediately respond to a request for comment about Steiner's current stake in the company.
The Postal Service relied on FedEx for years to transport some of its volume via air cargo transportation, before the agency opted last year to start using UPS for those services instead. FedEx's Ground Economy service formerly handed off packages to the Postal Service for final-mile delivery when it was called FedEx SmartPost. In 2019, FedEx announced it would move to handle the bulk of SmartPost deliveries in-house.
Editor's note: This story was updated to incorporate statements from Steiner and the Postal Service.
