Caterpillar group president announces retirement

Caterpillar Inc. announced October 12 that group president Gerry Shaheen has elected to retire effective February 1, 2008. The company also announced that Caterpillar's board of directors has appointed Rich Lavin and Ed Rapp as group presidents, joining the company's executive office. Lavin and Rapp's appointments will be effective December 1, 2007.

"Gerry's leadership has been exceptional, and on behalf of everyone at Team Caterpillar, I want to thank him for more than 40 years of distinguished service with the company and within our industry," said Caterpillar chairman and CEO Jim Owens. "Over the course of his career, Gerry has provided key leadership for our global marketing organizations and across Caterpillar's wide range of machine and engine products. He has also worked to strengthen and build critical relationships with our entire global dealer network. In addition, Gerry has set an example in the communities where he has lived by offering his time and talent to organizations outside of Caterpillar."

Since 2001, Lavin has been a Caterpillar vice president, serving as Human Services Division vice president until 2004 when he was named vice president with responsibility for Caterpillar's Asia Pacific Manufacturing Operations. Owens cited Lavin's broad-based, global business experience and leadership in announcing his selection as a Caterpillar group president.

"Rich Lavin embodies Caterpillar's commitment to a values based culture that is the foundation for our success with the products we make and the services we provide to our customers," said Owens. "As Caterpillar expands its focus on the rapidly emerging Asia Pacific markets, Rich's deep experience across Asia will be critical to our continued growth and success."

Lavin joined Caterpillar in 1984 as an attorney in what is now the Legal Services Division. In addition to his current position in Beijing, China, Lavin has held senior positions in Hong Kong, Bangalore, India and Tokyo, Japan. Previously he was a product manager in the Track-Type Tractors Division, a director of Corporate Human Relations and director of Compensation and Benefits.

Since 2000, Rapp has been a Caterpillar vice president, serving as the head of the Europe-Africa-Middle East (EAME) Marketing Division until 2004 when he was named vice president with responsibility for the Building Construction Products Division (BCP). Owens noted Rapp's strong commercial, operations and finance background in naming him a Caterpillar group president.

"In senior positions in the United States, Africa and Europe, Ed Rapp has demonstrated the vision and business skills that will make him a critical part of Caterpillar's executive office," said Owens. "We have set bold goals for 2010 and beyond, and Ed's leadership at this senior level will help Team Caterpillar achieve those goals."

Rapp joined Caterpillar as a pricing analyst in 1979. Over the next several years, he held positions related to pricing and production scheduling. In 1987, he became division manager of Planning Support for the North American Commercial Division (NACD) and later was named district manager of the San Francisco district. In the 1990s, he served as the area manager in Johannesburg, South Africa, was department manager in Building Construction Products in Geneva, Switzerland and was then named a regional manager based in Geneva.

Reflecting Caterpillar's global business growth and continued expansion of its service businesses, Caterpillar is announcing a realignment of its executive office. There will now be six group presidents reporting directly to Owens.

"Since 2002, we have more than doubled the size of our company," said Owens. "The addition of a group president aligns well with our enterprise strategy which calls for continued growth in key emerging markets and greater opportunities for the expansion of Caterpillar's service businesses. Our executive team has more than 200 years of Caterpillar experience covering every region of the world. This gives Caterpillar unparalleled depth as we respond to the needs of our global customer base."