How Did Caterpillar Shareholders Vote on Anti-DEI Proposal?
Caterpillar shareholders have voted by 97% to 3% to reject a National Center for Public Policy Research proposal calling for it to “cease DEI efforts”.
CAT’s Board responded to the proposal by saying: "The proposal inappropriately attempts to restrict Caterpillar’s ability to manage its own employees, ordinary business operations and enterprise strategy."
It adds: “We are committed to fostering an inclusive environment and a workforce that is representative of the diverse customers and communities we serve around the globe."
What did NCPPR propose?
The proposal came from shareholder activists with the National Center for Public Policy Research’s Free Enterprise Project.
In the same week, it also brought proposals to the annual meetings of American Airlines, Best Buy, Target and Dick’s Sporting Goods.
At Wednesday’s Caterpillar shareholder meeting, FEP presented Proposal 6, asking the company to consider abolishing its Diversity, Equity & Inclusion policies, department and goals.
While presenting Proposal 6, FEP Associate Bennett Nuss said: “Caterpillar has backed away from the commitments to corporate diversity programmes that we cited when we first submitted our proposal, undertaking significant revisions to their corporate sustainability programmes in September of last year.
“I’d like to thank the Board for this, as it shows that they are interested in protecting shareholder value from changing market and societal trends, and this pre-emptive move signals a commendable effort to attempt to return to neutral rules of general applicability when it comes to the company’s employment and charitable practices.”
Why is DEI still a hot topic?
DEI policies were a frequent point of discussion for US President Donald Trump during his election campaign and he has given the issue relentless focus since he took office in January 2025.
In the United States, diversity, equity and inclusion are organisational frameworks that seek to promote the fair treatment and full participation of all people, particularly groups who have historically been underrepresented or subject to discrimination based on identity or disability.
President Trump has described this approach as “dangerous, demeaning and immoral” and has often called the policies “nonsense”.
Many companies have followed his lead since his election, though many remain committed to DEI.
What has Caterpillar done with DEI?
Heavy plant manufacturer Caterpillar response to the President’s anti-DEI offensive has been nuanced.
Under pressure from social media activist Robby Starbuck, in September 2024 it appeared to tone down its DEI commitments.
It is revamping some of its diversity, equity, and inclusion policies, telling employees via an internal letter that training programmes will now be focused on "fostering high performance".
It also says senior management approval will now be required when choosing external speakers.
The company will also introduce new guidelines for external donations and sponsorships.
However, Caterpillar still has a DEI page on its website.
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