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Caterpillar Scales Back '09 Executive Pay

The Associated Press

PEORIA, Ill. -- Heavy-equipment maker Caterpillar (CAT Quote) says it will cut executive compensation by up to 50% 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% to 35% in 2009. Other management and support staff will see a reduction of up to 15%.

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

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