Caterpillar's Taxable Bonuses Wasted Funds, Investors Say

Law360, Wilmington (August 28, 2012, 7:00 PM EDT) -- Two shareholders launched derivative suits in Delaware federal court Monday claiming Caterpillar Inc.'s directors and certain executives wasted corporate funds by awarding and accepting incentive payments that were not tax-deductible as the board had represented.

The two identical complaints claim Caterpillar's 17-member board misled shareholders about the allegedly faulty executive-incentive plans and allege both directors and executives wasted assets and benefited unjustly through the paying and receiving of nondeductible bonuses.

“Because the plans are invalid and defective, such awards will subject the company to millions of...
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