Shareholders Want Say in Deciding Pay to Go Away
By George Anderson
Objections to the size of severance packages awarded to former senior executives at Coca-Cola has prompted company shareholders, led by the International Brotherhood of Teamsters General Fund, to introduce a motion that would require the beverage manufacturer’s board to gain approval for future deals.
The request will be voted on at Coca-Cola’s annual shareholders’ meeting scheduled for April 19 in Wilmington, Del. The company’s board is recommending that shareholders reject the proposal.
If the severance package proposal were passed, Coca-Cola’s board would be required to get shareholders to okay any package exceeding 2.99 times the executive’s salary and bonus.
Moderator’s Comment: Do you think the severance package proposal by the International Brotherhood of Teamsters General Fund is a good idea? If it were
to be adopted, would there be a ripple effect?
The proposal will probably not pass but there’s no doubt that investors are becoming increasingly dissatisfied with boards perceived as being too close
to senior executives. –
George Anderson – Moderator