Douglas Daft the chairman of Coca-Cola has frozen his own US$1.5m salary and acquired no restricted stock awards or long-term incentive packages for 2002. However he did receive a bonus of US$4m a rise of 14% from his 2001 bonus of US$3.5m.
In the annual shareholder report Coke said the bonus reflected its chairman’s “continued strong performance.”
It said: “Mr Daft led the company through considerable progress over the past year in achieving four strategic priorities; delivering strong financial results, growing our brands, strengthening our bottler relationships and building our leadership team.”
Coke’s share price has fallen around 24% since Daft took over in 2000.
Daft himself apparently requested that he be granted no restricted stock in 2002, despite the fact that the compensation committee said it was prepared to award equity.
And, no long-term compensation was awarded in the form of stock options for the year to Daft or other key executives, such as newly appointed president Steve Heyer, because of unachieved growth performance in unit case volume and average operating profit for a three-year period.
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“Actual growth in unit case volume and average operating profit margin for the three-year period determined the level of payout, and performance fell below the minimum of the range, therefore yielding no payout for the performance period to any plan participants.”
