US Fedex boss takes 20% pay cut

Fedex boss Frederick Smith will take a 20% salary cut from 1 January

The boss of the US courier giant Fedex is to cut his salary by 20%, as part of a round of savings at the firm triggered by the economic slowdown.

Chief executive Frederick Smith said it was facing "some of the worst economic conditions" in its 35-year history.

Other senior company executives will also have their salaries cut by between 7.5% and 10%.

FedEx also reported a 3% rise in second-quarter earnings to $493m (£320m) compared with $479m a year ago.

FedEx had already announced $1bn in cost cuts for the current year.

In a statement, the firm said that economic conditions would remain "very difficult" in 2009, but said it was "taking additional actions necessary to help offset weak demand".