Dec. 22 (Bloomberg) — Caterpillar Inc., the biggest maker of construction equipment, will cut executive pay as much as 50 percent and suspend merit increases for management and support staff to trim costs amid turmoil in the credit and financial markets.
Executive compensation will be reduced by as much as half for 2009, and pay for senior managers will be cut 5 percent to 35 percent, the Peoria, Illinois-based company said in a statement today. Other managers and support employees will see wages lowered as much as 15 percent. Caterpillar also is instituting a hiring freeze.