The Strategist

Coca-Cola Halved Payoff to Its CEO

03/11/2016 - 16:50

The total amount of corporate payments to Coca-Cola’s head, the company's board chairman Muhtar Kent decreased by 42% at the end of 2015 - from $ 25.2 million to $ 14.59 million.

"We have updated the annual incentive scheme program in order to prove the company's attention to the convergence of the maximum and minimum payments [to employees]. Reflecting the fact that 2015 was a transition for the company, we have reduced the number and size of the long-term incentive payments ", - said head of Coca-Cola’s Compensation Committee Mel Lagomasino.

The amount of bonuses paid to Kent in Coca-Cola shares declined the most severely in 2015. The size of these payments amounted to a total of about $ 7.7 million, that is more than two times less than it was a year earlier ($ 15.8 million). At the same time, the wage of Coca-Cola’s head has not changed and amounted to $ 1.6 million.

At the end of 2015, Coca-Cola’s revenue declined by 4%, amounting to about $ 44.3 billion versus $ 46 billion a year earlier. At the same time, the company's net profit increased by the same 4%, to $ 7.351 billion.