Wintergreen Advisers has sent the following letter to the Coca-Cola Company’s (NYSE: KO) largest shareholders, further detailing operational and governance issues at the company. In the letter, Wintergreen Advisers discusses how to fix the Coca-Cola Company by answering the question, “what would Coca-Cola look like if it were a well-run company with a focus on shareholder returns?”
Click on the items listed below to learn more about each topic.
Operations and integrity:
Best in class profit margins.
A laser-like focus on costs.
An increased pace of bottler refranchising.
Prioritizing pricing and profit over volume growth.
No more attempts to buy growth.
No more cheapening Coca-Cola’s brands.
Separate the roles of Chairman and CEO.
Withdraw and replace the 2014 Equity Compensation Plan.
Develop and implement a plan to reduce the dilutive effects of the existing 388 million equity awards.
A strong and independent Board of Directors.
- Bloomberg, “Coca-Cola Cuts CEO Kent’s Pay After Revamping Equity Program”
- The Wall Street Journal, “What Is Coke CEO’s Solution for Lost Fizz? More Soda,” By Mike Esterl
- Seeking Alpha, “CEO Pay At Coca-Cola: Up Or Down?” By Paul Hodgson
- David Winters discusses Coca-Cola’s secret “bonus shares” with Maria Bartiromo on Fox Business
- Benefit of Coca-Cola’s Equity Compensation Guidelines Enacted After Public Pressure from Wintergreen Advisers: $6.6 billion to $21 billion
- Wintergreen Advisers Comments on Shareholder Opposition to Coca-Cola’s Executive Pay
- Wintergreen Advisers Cites Changes in Coca-Cola Proxy, But Big Issues Remain
- Wintergreen Advisers Poses Questions for Coca-Cola