UK2019
Gender Pay Report

1 | CATERPILLAR’S UK GENDER PAY REPORT 2019

Since 1925, Caterpillar Inc. has been helping our customers build a better world –making sustainable progress possible and driving positive change on every continent.
With 2019 sales and revenues of $53.8 billion, Caterpillar is the world’s leading manufacturerof construction and mining equipment, diesel and natural gas engines, industrial gas turbinesand diesel-electric locomotives. Services offered throughout the product life cycle, cutting-edge
technology and decades of product expertise set Caterpillar apart, providing exceptional value
to help our customers succeed. The company principally operates through three primary
segments – Construction Industries, Resource Industries and Energy & Transportation –and provides financing and related services through its Financial Products segment.

Global footprint...

102,000
Global Workforce

Caterpillar established its first major facility outside of the United States more than
60 years ago in the United Kingdom (UK). Today, the company employs around 7,600 people
in 18 locations, including manufacturing facilities and offices across the UK.
Wherever we work, whatever we do, we share a single set of values that unite our company –integrity, excellence, teamwork, commitment and sustainability. These values steer us
in how we interact with our customers, partners and one another and serve as the foundationof our business strategy and a guide for how we do the work.
Our Caterpillar team is diverse and representative of the many customers we servearound the globe. But it’s our focus on inclusion that allows every person to contributehis or her fullest potential.

At Caterpillar, we collaborate and combine theunique talents, experiences, backgrounds and culturesof each individual; we actively seek out different
perspectives because it makes us stronger,
more innovative, more productive.
Different perspectives help us discover new ways of solving problems, allow us to achieve
our best work and enable our company to make positive changes in the communities
where we live and work. And that matters to us.

Construction

MiningEquipment

Diesel &Natural
Gas Engines>4 million

Industrial
Gas
Turbines

DieselElectric
Locomotive

Products at workaround the world165

Global Cat® Dealers$53.8 billion
2019 Global Sales and Revenues

2 | CATERPILLAR’S UK GENDER PAY REPORT 2019

MenWomenMeasuring...

To provide a more complete picture, Caterpillar has chosen to report data for all its employees
in the UK, excluding Northern Ireland (NI). Caterpillar in the UK is made up of separate legal
entities, three of which are in scope for Gender Pay Reporting.

MeanAll UK Caterpillar Employees, excluding NI
Proportion of employees paid a bonus*

Gender Pay and Bonus Gaps

Mean Hourly Pay▲▲

Mean BonusMedian Hourly Pay
Median Bonus

90.5%

2.9%▲The difference in the average hourly
pay for women compared to men
within a company.

94.8%

1.0%
3.9%

Proportion of employees eligible
to participate in bonus scheme▲122.8%100.0%

100.0%

Lower Middle

Lower

MedianThe difference between the midpoints
in the ranges of men’s and women’s pay.
The pay gap between hourly rate pay
for the middle woman compared to thatof the middle man.

Pay quartiles
Upper

88%

12%

Upper Middle

89%

11%

91%

9%

83%

17%

* Non-payment of bonus is the result of:• Bonus plan not paying out dueto business performance• Employee leave of absence• Effective date of hire occurred
outside of reported plan year

3 | CATERPILLAR’S UK GENDER PAY REPORT 2019

Caterpillar (UK) Ltd.

Perkins Engines Company Ltd.

Gender Pay and Bonus Gaps

Gender Pay and Bonus Gaps

Progress Rail Services UK Ltd.
Gender Pay and Bonus Gaps

Mean Hourly Pay▲ 2.3%

Mean Hourly Pay▲6.6%

Mean Hourly Pay▲ 4.0%

Mean Bonus▲ 29.5%

Mean Bonus▲18.4%

Mean Bonus▲ 210.0%

Median Hourly Pay▲4.4%

Median Hourly Pay

Median Hourly Pay▲4.0%▲ 127.4%

Median Bonus

Proportion of employees paid a bonus

98.6%

Upper

88%

12%

Lower Middle

95%

5%

Proportion of employees paid a bonus

92.7%

Pay quartiles▲ 23.2%

Median Bonus

97.2%

95%

5%

Lower

88%

12%

Upper

87%

13%

Lower Middle

87%

13%

11.8%

▲100.0%Median Bonus

Proportion of employees paid a bonus

97.2%

Pay quartiles
Upper Middle

▲

30.7%

83.9%

Pay quartiles
Upper Middle

84%

16%

Lower

82%

18%

Upper

93%

7%

Upper Middle

96%

Lower Middle

99%

1%

4%

Lower

86%

Data representative of our three legal entities with an employee population of more than 250 employees, as of 5 April 2019.

14%

4 | CATERPILLAR’S UK GENDER PAY REPORT 2019

Understanding...
£ =“Equal Pay” is about receiving equal pay for equal work. Caterpillar has gender neutral
pay grades and a pay-for-performance philosophy that includes opportunities for equal
pay and bonuses.

Did you know...

The “Gender Pay Gap” is the average difference between a man’s and a woman’s
remuneration over a period of time. The “Gender Pay Gap” is influenced by a numberof factors, including the demographics of a company’s workforce. At Caterpillar, a higher
proportion of men make up the total workforce with a significant amount in production roles.

Risk

Risk

Our goal is to increase the percentage of women at all levels and across all areas.
Our compensation is driven by individual and team performance. Base pay as aproportion of total compensation decreases as salary grade increases, meaning more
pay at risk with increased job responsibility.

At Caterpillar, we employ more men than womenacross our business.

Total UK Workforce
12%National
17.3% UKMedian Pay Gap*Source ONS 2019. Reflects a positive pay gap(men being paid more than women).

• Our overall figures shown in line with the UK
regulations reflect a 2.9% pay gap (men beingpaid more than women).

Production

5%

78%

42%

95%
Salaried &Management88%

The national average*

21%
79%

Definitions...

• 78% of women, but only 42% of men are in salaried
roles; this impacts the median hourly pay rate.

Production: employees who
work within our manufacturing
and logistics facilities• Within the sub groups of salaried and management
or production, when looked at independently, we see
a gender pay gap in line with the national average.

Salaried and Management:
employees who workin supporting or leadership roles5 | CATERPILLAR’S UK GENDER PAY REPORT 2019

Addressing...

Caterpillar is committed to driving this change across the enterprise and has implemented and supported
many initiatives on behalf of our global team – both women and men – at all career stages.

The goal is to create a diverse, inclusive and safe environment
where all employees can thrive regardless of sex, race, religion orbelief, age, sexual orientation, gender reassignment, or disability.

ENGOP

TI& EXECUTIOEOPERATIONAL
EXCELLENCE

NMOPA

RTNE
RS

• Flexible and agile
working policies
designed to support
employees balance
work and lifestyle commitments

RAEL• Leadership training for men
to address unconscious bias
in the workplace• Our strategy,underpinnedby our inclusive
values, drive
equal opportunities
and inclusion

D• Intentional leadershipdevelopment
for current and future
female leaders• Enhanced maternity, paternity
and adoption payPL•• Women’sEngineeringSociety• Improve recruitment practices
to address unconscious bias

PEO• Employee Resource Groups serve
as catalysts for change including
Women’s Initiative Network (WIN)PROFITABLEGROWTHEXPANDED
OFFERINGS• Science,Technology,Engineering andMathematics(STEM)SERVICES• Create more opportunities forfemale representation• Partner with local
schools and colleges
to increase STEM
awareness andprovide career advice• Mentoring, including reverse
mentoring, which provide leaderswith a different perspective• International
Women’sDayOURCUS

VA

TOMERSLUES IN AC• Graduate and Apprenticeshipprogrammes• Society of WomenEngineersTION

 or more information on ourFinitiatives, click here.

6 | CATERPILLAR’S UK GENDER PAY REPORT 2019

Our commitments...

Caterpillar maintains an inclusive work environment for ourteams around the world. We believe that, regardlessof gender, each individual can contribute their best when
we treat one another with respect, dignity and fairness.
We are focused on helping employees at all levels grow their skills
and capabilities. Having the very best talent – including a genderbalanced workforce – benefits everyone. Addressing gender parity
is a key step in a broader, more intentional diversity and inclusion
journey. Because, ultimately, Caterpillar believes that whenemployees with different perspectives, experiences and backgrounds
come together, we can achieve superior business and personal results.
We confirm that our data published within this report is accurate and in linewith the UK Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Cheryl Johnson
Chief Human Resources Officer

Mark Dorsett
UK Country Director