Caterpillar scales back exec. pay in '09

December 22, 2008 5:18:07 PM PST
Heavy-equipment maker Caterpillar says it will cut executive compensation by up to 50 percent next year because of weakening demand triggered by the global economic downturn. The world's largest maker of mining and construction equipment also says it will reduce compensation for senior managers by 5 percent to 35 percent in 2009. Other management and support staff will see a reduction of up to 15 percent.

The Peoria, Ill.-based company says the cuts reflect planned reductions in its incentive program and equity-based compensation.

Caterpillar Inc. is also offering incentives to U.S. management and support employees to voluntarily leave the company. Eligible employees have until Jan. 12, 2009, to join the program.