Diesel Progress North American

INDUSTRY NEWS
CAT’S MANAGEMENT CHANGES
— MORE TO FOLLOW
Shaheen, Mayo retire; Lavin, Rapp new group presidents

BY MIKE OSENGA

Almost every year in October or November, Caterpillar Inc. announces changes in its senior management. Some years these are mostly housekeeping moves, other times, like this, there are major changes at the top of the massive Peoria, Ill.-headquartered manufacturer.

The most recent announcements, made in mid-October, appear to hint at more substantial changes ahead, especially as it includes two new group presidents whose responsibilities at press time were undefined. There is also a new group within Cat’s engine operations that would seem to herald changes for that part of the Cat corporate org chart as well.

In fact, the speculation here is that this may be only the first step of a makeover of senior management, encompassing the responsibilities of Caterpillar’s group presidents, the vice presidents that report to them, and the myriad changes that will cascade down through the organization as a result of all that.

Changes like these are generally started by departures, and such is the case here. Group President Gerry Shaheen is retiring, as is Caterpillar Vice President Bill Mayo. Both are effective Feb. 1, 2008.

Shaheen, 62, has been with Cat since 1967 and had a large portfolio that included the design, development and production of Caterpillar’s large construction and mining equipment, as well as the company’s U.S. opera-

tions division. He is also responsible for marketing and sales operations in North America, Caterpillar’s global mining business, Caterpillar’s components business and Caterpillar’s research and development division. Mayo headed up Cat’s massive North American Commercial Division (NACD) under Shaheen.

The biggest fallout from Shaheen’s retirement is the appointment of two new group presidents, a move that increases Cat’s executive office from five to six presidents. The two new group presidents are Rich Lavin and Ed Rapp, whose appointments are effective Dec. 1, 2007.

Lavin was a vice president with responsibility for Caterpillar’s Asia Pacific Manufacturing Operations, while Rapp was vice president over

New Group President Rich
Lavin was vice president of
Caterpillar’s Asia Pacific Man-
ufacturing Operations.

the Building Construction Products Division (BCP).

The fact that neither Lavin nor Rapp’s presidential responsibilities were detailed in Cat’s announcement raises the speculation about additional changes, because Cat rarely makes announcements of this magnitude without every detail in place.

New Group President Ed Rapp,
is the former vice president of
the Building Construction Prod-
ucts Division.

The addition of Rapp and Lavin to the group of presidents that also includes Stu Levenick, Doug Ober-helman, Gérard Vittecoq and Steve Wunning also appears to set the field for the horserace to eventually replace current Chairman and CEO Jim Owens.