Caterpillar's CEO has again criticized Illinois' political leaders and what he calls the state's uncompetitive business environment.

But Doug Oberhelman says the heavy equipment maker will keep its headquarters in Peoria.

Last year, Oberhelman pressed Gov. Pat Quinn to improve the state's economy and noted that the company had out-of-state suitors. Though he said later he was not threatening to leave Illinois, the remarks set off alarms.

On Thursday evening, Oberhelman told the Economic Club of Chicago that the company is staying in Peoria.

He also spoke about how much cheaper it is to do business in other states.

He also said last year's increase in Illinois' state income tax has hurt executive recruitment.