UK2020
Gender Pay Report

1 | CATERPILLAR’S UK GENDER PAY REPORT 2020

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 nearly 8,000 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.

Global footprint...

97,300 FTE
Global Workforce

Construction

MiningEquipment

Diesel &NaturalGas Engines>4 million

IndustrialGas
Turbines

DieselElectric
Locomotive

Products at workaround the world

161

Global Cat® Dealers

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

$41.7 billion
2020 Global Sales and Revenues

2 | CATERPILLAR’S UK GENDER PAY REPORT 2020

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 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

▲

2.2%

Mean Bonus

▲

2.1%

▲

4.5%

Median Hourly Pay
Median Bonus

91.1%

The difference in the average hourly
pay for women compared to menwithin a company.

96.3%

Proportion of employees eligible
to participate in bonus scheme▲ 33.6%100.0%

100.0%

Lower Middle

LowerMedian

The 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

87%

13%

Upper Middle

89%

11%

88%

12%

84%

16%

* 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 2020

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▲ 4.5%

Mean Hourly Pay

▲

6.7%

Mean Hourly Pay

Mean Bonus▲ 29.8%Mean Bonus

▲

25.9%

Mean BonusMedian Hourly Pay▲

Median Hourly Pay

▲

7.1%

Median Bonus▲ 13.3%

1.3%

Proportion of employees paid a bonus

99.5%

Upper

87%

13%

Lower Middle

94%

6%

Proportion of employees paid a bonus

97.9%

Pay quartiles▲ -30.0%

Median Bonus

98.2%

96%

4%

Lower

89%

11%

Upper

86%

14%

Lower Middle

84%

16%

0.5%

▲195.3%▲18.4%▲100.0%Median Bonus

Proportion of employees paid a bonus

96.8%

Pay quartiles
Upper Middle

Median Hourly Pay

▲

30.0%

86.7%

Pay quartiles
Upper Middle

83%

17%

Lower

81%

19%

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 2020.

14%

4 | CATERPILLAR’S UK GENDER PAY REPORT 2020

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.

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 a proportionof 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
14%National
15.5% UKMedian Pay Gap*Source ONS 2020. Reflects a positive pay gap(men being paid more than women).

• Our overall figures shown in line with the UK
regulations reflect a 2.2% pay gap (men being
paid more than women).

Production

6%

77%

40%

94%
Salaried &Management86%

The national average*

23%
77%

Definitions...

• 77% of women, but only 40% of men are in salaried
roles; this impacts the median hourly pay rate.

Production: employees whowork within our manufacturing
and logistics facilities• Within the sub groups of salaried and management
or production, when looked at independently, we seea 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 2020

Addressing...

Caterpillar is committed to fostering a diverse workforce and an inclusive environment across the enterpriseand 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.
• Employee Resource Groups serve as catalysts forchange including Women’s Initiative Network (WIN)•F lexible and agile working policies
designed to support employees balance
work and lifestyle commitments• Improve recruitment practices to address
unconscious bias

• Society of Women Engineers• Science, Technology, Engineeringand Mathematics (STEM)

NG& EXECUTIO

NM

OE

NE

PEO

RT

PL

PA

OPERATIONAL
EXCELLENCEELOPTIDRAE• Graduate and Apprenticeship programmes• Women’s Engineering Society• Enhanced maternity, paternity and adoption payRS• Our strategy, underpinnedby our inclusive values, drive equalopportunities and inclusion• Mentoring, including reverse mentoring, which
provide leaders with a different perspective

PROFITABLEGROWTHEXPANDED
OFFERINGSOURSERVICESCUSVATOMERSLUES IN AC

TION• Create more opportunities for female
representation

For more information on our initiatives, click here.

• Partner with local schools
and colleges to increase
STEM awareness and provide
career advice• International Women’s Day

6 | CATERPILLAR’S UK GENDER PAY REPORT 2020

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 and having
the very best capable talent – including a gender-balanced workforce –benefits everyone. Addressing gender parity is a key stepin a broader, more intentional diversity and inclusion journey.
Because ultimately, Caterpillar believes that when employeeswith 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 linewith the UK Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Cheryl Johnson
Chief Human Resources Officer

Mark Dorsett
UK Country Director