Caterpillar Cutting Exec Pay by 50%
Caterpillar Inc., the world's largest maker of construction equipment and engines, said today that executives are facing pay cuts of up to 50 percent in 2009.
The company blamed the "continued deterioration" of markets the company serves.
"We understand these decisions will disrupt the lives of many of our employees and their families, and we regret the need to take these steps," Caterpillar CEO Jim Owens said in a statement. "We considered waiting until January to make this announcement, but decided it was better to communicate these plans with our employees as we approach the completion of our 2009 planning process,"
Caterpillar, based in Peoria, Ill., is also offering buyouts to management and support employees.
Last week, the company notified more than 800 workers at an Illinois engine assembly facility that they were being laid off.
-- Michael S. Rosenwald
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