Washington  - The Illinois-based maker of earth-moving equipment, Caterpillar, said Monday it was cutting executive pay as much as 50 per cent and offering voluntary buyouts to US-based employees.

Pay for senior managers will be reduced 5 per cent to 35 per cent, while other managers and support employees could see wage cuts of up to 15 per cent, Bloomberg financial news service reported.

Demand for the construction industry has fallen drastically amidst the worst wave of home foreclosures in US history. (dpa)