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.
- Reuters Breakingviews, “Coke Challenge Goes Beyond Revising Pay Plan,” by Kevin Allison
- David Winters discusses Coca-Cola’s compensation plan changes with Maria Bartiromo on Fox Business
- David Winters appeared on CNBC to discuss why more changes are needed at Coca-Cola
- New York Times, “Support in Coca-Cola Vote Depends on How the Math Is Done” by Andrew Ross Sorkin
- Wintergreen Advisers: Why Coke’s Equity Plan Is Still Bad For Shareholders
- Wintergreen Advisers Poses Twelve Urgent Questions for Coca-Cola
- Wintergreen Advisers: Four Lessons from Coca-Cola’s Equity Compensation Plan
- Wintergreen Advisers responds to Coca-Cola’s statement regarding new Equity Stewardship Guidelines