The company said today it will cut executive compensation by up to 50% in 2009 because of weakening demand triggered by the global economy turndown.
The company said it will also reduce compensation by 5 to 35% Other management and support staff will see a reduction of up to 15%. The company also announced is has instituted a hiring freeze and plans to suspend merit pay increases for managers and support employees.
Besides the compensation cuts, the company has offered incentives to U.S. based management and support employees to leave the company voluntarily. Eligible employees have until Jan. 12, 2009 to make a decision.
Analyst say, "This will probably not be the last you will hear from them. This is an ongoing process and Jim Owens, Caterpillar's chief executive said the next year was 'extremely uncertain'". Owens received $14.8 million in compensation last year. (As well as other perks, etc.), while the stock fell over 40% this year.
7 comments:
Caterpillar certainly can't be accused of kowtowing to the UAW. They have the UAW pretty much under control. So,if CAT is having problems, maybe the UAW is not responsible for the current situation regarding the Big 3?
Cat hasn't and will not ask for any bailout from Congress. Just the normal subsidies they receive which are substantial.
In my opinion, there is NO comaparison between Caterpillar and the weak management of the Big 3.
As part of the "short term" baiolout of the Big 3, I hope Bush got at least the Democrats to agree to open up free trade with other parts of the world like Columbia.
If CAT had the UAW under its thumb I wouldn't have spent the last three years watching people "working" by sitting on their asses reading the paper. Coming to work at CAT was a shock to me when I saw how the UAW "workers" (a.k.a. noble, oppressed proletariat) conduct themselves. Even during the busy times in 2006, it was difficult to find people actually working. Usually they were sitting idly, smoking or reading the newspaper. The engine manufacturing plant I previously worked in was also UAW, but those guys actually worked. When they were on their stations on the assembly line, there was continuous activity.
Why are the workers being lazy? Aren't their shift foreman (company men) requiring them to work? I know of 2 workers being fired a few weeks ago; one for "being lazy" and one for making a threatening comment. Everyone is, and should be, held accountable to someone but the UAW is being held accountable for damn near everything bad that happens to CAT and if that is the case shouldnt they be credited w/ when the company is making record profits? I am not affiliated w/ the UAW and my head isnt stuck up CATS ass so I dont see only yellow. Just getting tired of hearing one particular group of people getting blamed for the demise of central illinois
Neal
The workers are being lazy because their UAW work rules and contract enable them to do so. I am not blaming the UAW for the demise of central Illinois, just offering contrary evidence to the statement that CAT has the UAW under its thumb.
I believe CAT signed the contract also? So theat means CAT agreed to their work rules, conditions, pay, etc. Correct? They would be as culpable, more in my opinion, for allowing lazy workers being in the company. After all, I am sure there is a list of people waiting to be hired who aren't lazy. Of course there are lazy workers for the UAW ....and also management for that matter. But I would like to believe that a world reknown company would be able to regulate their workers activities more than their union (obviously they can). Anyway.....best of luck to CAT as a company......any one hear of them being bought out by a competitor(sp?).
Neal
I agree, it is CAT's fault for tolerating the UAW in the first place. CAT is not going to be bought by a competitor.
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