UK2018
Gender Pay Report

1 | CATERPILLAR’S UK GENDER PAY REPORT 2018

Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines and diesel electric locomotives. Caterpillar
established its first major facility outside the United States more than 60 years ago in the UK.
Today, the company employs more than 7,500 people in 19 facilities across the UK.
We are committed to ensuring that our workplace is diverse and representative of themany customers we serve around the globe. At Caterpillar, we respect the unique talents,experiences and viewpoints of all of our employees. Different perspectives help us 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. Our workforce is as diverse as the customers
we serve. We have different backgrounds and varied experiences. But wherever we work,whatever we do, we share a single set of values that unite our company. We live andwork by these values – integrity, excellence, teamwork, commitment and sustainability –which means we treat each other with respect and value each individual’s contribution.
At Caterpillar, we recognize the need to celebrate diversity and the true uniqueness of eachindividual member, while ensuring the inclusion of the individual’s ideas and contributions.
Diverse and inclusive work environments embrace the values, unique talents, experiencesand viewpoints of employees. At Caterpillar, we are a high-performing team living our values
and inspired to help our customers build a better world.

Inclusion drives business results, and Caterpillar
knows that when it focuses on having thebest talent – including a more gender-balanced
workforce – everyone benefits. The more diverse
our global team, the better positioned we are tomeet the needs of our customers.

Global footprint...

104,000
Global Workforce

Construction

MiningEquipment

Diesel &Natural
Gas Engines>3 million

Industrial
Gas
Turbines

DieselElectric
Locomotive

Products at workaround the world

168

Global Cat® Dealers$54.7 billion
2018 Global Sales and Revenues

2 | CATERPILLAR’S UK GENDER PAY REPORT 2018

MenWomen

Measuring...

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 upof separate legal entities, three of which are in scope for Gender Pay Reporting.

Mean

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

Gender Pay and Bonus Gaps

Mean Bonus

93.0%▲ 0.3%

Mean Hourly Pay▲

The difference in the average hourly
pay for women compared to men withina company.

95.8%

5.2%

Median Hourly Pay▲Median Bonus▲ 117.6%

1.4%

Proportion of employees eligible
to participate in bonus scheme

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%

85%

15%

* Non-payment of bonus is the result of:• Bonus plan not paying out due
to business performance• Employee leave of absence• Effective date of hire occurred
outside of reported plan year3 | CATERPILLAR’S UK GENDER PAY REPORT 2018

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▲ 4.2%

Mean Hourly Pay▲2.5%

Mean Hourly Pay▲ 6.8%

Mean Bonus▲ 15.7%

Mean Bonus▲18.5%

Mean Bonus▲ 141.6%

Median Hourly Pay▲

Median Hourly Pay▲ 2.8%Median Hourly Pay▲ 4.5%Median Bonus▲ 147.2%

Median Bonus▲ 31.8%Median Bonus▲100.0%1.6%

Proportion of employees paid a bonus

99.1%

95.2%Pay quartiles
Upper

89%

11%

Lower Middle

96%

4%

Proportion of employees paid a bonus

97.9%

96.6%

Pay quartiles
Upper Middle

95%

5%

Lower

89%

11%

Upper

87%

13%

Lower Middle

88%

12%

Proportion of employees paid a bonus

44.3%

85.0%

Pay quartiles
Upper Middle

83%

17%

Lower

84%

16%

Upper

94%

6%

Upper Middle

95%

Lower Middle

98%

2%

5%

Lower

94%

Data representative of our three legal entities with an employee population of more than 250 employees, as of 5 April 2018.

6%

4 | CATERPILLAR’S UK GENDER PAY REPORT 2018

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’sremuneration 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.

RiskRisk

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 Workforce
12%National
17.9% UKMedian Pay Gap*Source ONS 2018. Reflects a positive pay gap(men being paid more than women).

• Our overall figures shown in line with the UK
regulations reflect a negative pay gap (womenbeing paid more than men).

Production

5%

79%

42%

95%
Salaried &Management88%

The national average*

20%
80%

Definitions...

• 79% of women, but only 42% of men are in salaried
roles; this impacts the median hourly pay rate.

Production: employees who workwithin our manufacturing andlogistics 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 work insupporting or leadership roles5 | CATERPILLAR’S UK GENDER PAY REPORT 2018

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.

ENG

OP

TI& EXECUTIOE

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

RAEL• “Breakthrough Leadership
Men as Allies” – Leadershiptraining to address gender bias
in the workplace• Our strategy,underpinnedby our inclusive
values, drive
equal opportunities
and inclusionD• “BreakthroughLeadership” –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 localschools and colleges
to increase STEM
awareness andprovide career advice• Mentoring, including reverse
mentoring, which provide leaderswith a different perspective• International
Women’sDay

OUR

CUS

VA

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

 or more information on ourFinitiatives, click here.

6 | CATERPILLAR’S UK GENDER PAY REPORT 2018

Our commitments...

Caterpillar fosters an all-embracing environment and believes
that regardless of gender, the full value of each individual’scontribution can be realised only when we treat one
another with respect, trust and dignity.
Providing all employees with the opportunity to develop andhaving the very best capable talent – including a gender-balanced
workforce – benefits everyone. Addressing gender parity is akey step in a broader, more intentional diversity and inclusion
journey. Because ultimately, Caterpillar believes that whenemployees with different opinions, experiences and backgrounds
come together, we help our customers build a better world.
We confirm that our data published within this report is accurate and in line with the
UK Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Cheryl Johnson
Chief Human Resources Officer

Mark Dorsett
UK Country Director