Coca-Cola cut CEO Muhtar Kent's total annual pay by 42% to $14.6 million in 2015 due to fewer stock and option awards and weaker company performance. The pay cut came as Coca-Cola's shares underperformed peers in recent years and the company aimed to cut costs and boost growth through franchising bottling operations. A board member said the changes addressed shareholder feedback to reduce executive equity compensation.
Coca-Cola cut CEO Muhtar Kent's total annual pay by 42% to $14.6 million in 2015 due to fewer stock and option awards and weaker company performance. The pay cut came as Coca-Cola's shares underperformed peers in recent years and the company aimed to cut costs and boost growth through franchising bottling operations. A board member said the changes addressed shareholder feedback to reduce executive equity compensation.
Coca-Cola cut CEO Muhtar Kent's total annual pay by 42% to $14.6 million in 2015 due to fewer stock and option awards and weaker company performance. The pay cut came as Coca-Cola's shares underperformed peers in recent years and the company aimed to cut costs and boost growth through franchising bottling operations. A board member said the changes addressed shareholder feedback to reduce executive equity compensation.
As Cokes shares have underperformed peers. Beverage giant Coca-Cola has cut CEO Muhtar Kents total annual pay by 42%, a move that comes after the company promised to reduce equity compensation for top executives. Kents total pay was reduced to $14.6 million last year from 2014s $25.2 million, according to a filing with the Securities and Exchange Commission. Much of the reduction was due to fewer stock and options awards. His base salary was unchanged at $1.6 million. Bloomberg notes that the changes to executive pay were needed to appease investors, especially as it relates to stock awards, which dilute the value of investors shares. Maria Elena Lagomasino, a member of Cokes board, explained the changes in more detail in a blog post and also touted the reduction in equity compensation as progress that was needed to address shareholder feedback. The pay cut for Kent comes as Coke is at an important inflection point. The company, challenged by weak soda sales in mature markets, unveiled a plan to boost growth and increase profitability partly by moving to cut billions in costs. Kent would go on to describe 2015 as a transition year, a year when fully reported revenue dropped 4%. Cokes pivotwhich includes a plan to re-franchise 100% of company-owned North American bottling territories by the end of 2017takes place as the beverage giants shares have underperformed its peers in recent years. Over the past five years, Cokes shares rose 39%, underperforming PepsiCo PEP 0.69% , Dr Pepper Snapple DPS 1.71% , and the broader Standard & Poors 500 index.
Coca-Cola garis miring Pay CEO Kent untuk 2015
Seperti saham Coke memiliki rekan-rekan underperformed.
Minuman raksasa Coca-Cola telah memotong jumlah gaji tahunan CEO Muhtar Kent oleh 42%, sebuah langkah yang datang setelah perusahaan berjanji untuk mengurangi berbasis ekuitas untuk eksekutif puncak. Total gaji Kent dikurangi menjadi $ 14.600.000 tahun lalu dari 2014 $ 25.200.000, menurut sebuah pengajuan dengan Securities and Exchange Commission. Banyak dari pengurangan itu karena saham dan opsi penghargaan lebih sedikit. gaji pokok tidak berubah pada $ 1,6 juta. Bloomberg mencatat bahwa perubahan gaji eksekutif yang diperlukan untuk menenangkan investor, terutama yang berkaitan dengan penghargaan saham, yang mencairkan nilai saham investor. Maria Elena Lagomasino, anggota dewan Coke, menjelaskan perubahan secara lebih rinci dalam posting blog dan juga disebut-sebut pengurangan kompensasi ekuitas sebagai kemajuan yang diperlukan untuk mengatasi umpan balik pemegang saham. The pemotongan gaji untuk Kent datang sebagai Coke adalah pada titik perubahan penting. Perusahaan, ditantang oleh penjualan soda lemah di pasar yang matang, mengumumkan rencana untuk meningkatkan pertumbuhan dan meningkatkan profitabilitas sebagian dengan memindahkan untuk memotong miliaran biaya . Kent akan pergi untuk menggambarkan 2015 sebagai "tahun transisi," tahun ketika pendapatan sepenuhnya dilaporkan turun 4%. Coke poros-yang mencakup rencana untuk kembali franchise 100% dari perusahaan yang dimiliki Amerika Utara wilayah pembotolan pada akhir 2017-terjadi sebagai saham minuman raksasa ini telah underperformed rekan-rekan dalam beberapa tahun terakhir. Selama lima tahun terakhir, saham Coke naik 39%, tertinggal PepsiCo PEP 0,69% , Dr Pepper Snapple DPS 1.71% , Dan lebih luas indeks Standard & Poor 500