Caterpillar Issues Proxy Statement and Highlights Record-Breaking 2008
April 21 2009 - 12:59PM
PR Newswire (US)
PEORIA, Ill., April 21 /PRNewswire-FirstCall/ -- Caterpillar Inc.
(NYSE: CAT) today filed its proxy statement and annual meeting
notification with the United States Securities and Exchange
Commission (SEC). The proxy statement provides details on
Caterpillar's 2008 executive compensation and highlights the
company's long-held philosophy of pay for performance and pay at
risk. The document also includes other information related to the
company's business and financial performance in 2008. Caterpillar's
2008 sales and revenues were $51.324 billion, a 14 percent increase
over 2007, the sixth straight year for record sales and revenues.
Profit per share of $5.66 was also a record, up 5 percent from
2007. Caterpillar set many other records in 2008, enhancing the
company's global strength and positioning the company for future
success: -- Capital expenditures of $2.4 billion in 2008 increased
44 percent compared to 2007. -- Caterpillar invested $1.7 billion
for research and development in 2008, up 23 percent. -- Total wages
and benefits provided by Caterpillar to employees were $9.1
billion, up 9 percent compared to 2007. -- The Caterpillar
Foundation provided a record $39 million in grants in 2008, up 7
percent. -- Health care expenditures for employees and retirees by
the company totaled more than $600 million. -- Incentive pay for
employees totaled $670 million, up 13.6 percent. Caterpillar's
incentive pay program covers thousands of employees, and the
payments are based on aggressive goals established at the start of
each year. The proxy statement includes detailed 2008 compensation
information for Caterpillar's senior leaders, including cash and
equity-based compensation. It's notable that the equity portion of
the compensation is primarily comprised of stock appreciation
rights (SARs) granted in March 2008 with a grant price of $73.20
per share. These SARs will only have value if the shares are above
this price during the term of the grant. This follows Caterpillar's
long-held philosophy of pay for performance and pay at risk, which
clearly aligns executive compensation with stockholders' interests.
For 2009, Caterpillar has already announced that it expects
significant reductions in total compensation for its senior
leadership group. These reflect planned reductions in the company's
incentive compensation program and equity-based
compensation--directly tied to share price--again designed to align
the interests of our senior managers and executives with the
interests of Caterpillar's stockholders. About Caterpillar: For
more than 80 years, Caterpillar Inc. has been making progress
possible and driving positive and sustainable change on every
continent. With 2008 sales and revenues of $51.324 billion,
Caterpillar is the world's leading manufacturer of construction and
mining equipment, diesel and natural gas engines and industrial gas
turbines. The company also is a leading services provider through
Caterpillar Financial Services, Caterpillar Remanufacturing
Services, Caterpillar Logistics Services and Progress Rail
Services. More information is available at http://www.cat.com/.
SAFE HARBOR Certain statements in this release relate to future
events and expectations and as such constitute forward-looking
statements involving known and unknown factors that may cause
actual results of Caterpillar Inc. to be different from those
expressed or implied in the forward-looking statements. In this
context, words such as "will," "would," "expect," "anticipate,"
"should" or other similar words and phrases often identify
forward-looking statements made on behalf of Caterpillar. It is
important to note that actual results of the company may differ
materially from those described or implied in such forward-looking
statements based on a number of factors and uncertainties,
including, but not limited to, (i) adverse change in general
economic conditions; (ii) adverse change in the industries
Caterpillar serves including construction, infrastructure, mining,
energy, marine and electric power generation; (iii) Caterpillar's
ability to manage material, including steel, and freight costs;
(iv) Caterpillar's ability to generate cash from operations, secure
external funding for its operations and manage its liquidity needs;
(v) material adverse change in customers' access to liquidity and
capital; (vi) currency exchange or interest rates changes; (vii)
political stability; (viii) market acceptance of the company's
products and services; (ix) significant changes in the competitive
environment; (x) epidemic diseases; (xi) severe change in weather
conditions negatively impacting operations; (xii) changes in law,
regulations and tax rates; and (xiii) other general economic,
business and financing conditions and factors described in more
detail in the company's Form 10-K filed with the Securities and
Exchange Commission on February 20, 2009. This filing is available
on our website at http://www.cat.com/sec_filings. We do not
undertake to update our forward-looking statements. DATASOURCE:
Caterpillar Inc. CONTACT: Jim Dugan, Corporate Public Affairs of
Caterpillar Inc., +1-309-494-4100, Web Site: http://www.cat.com/
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