Coca-Cola CEO Granted $20.9 Million in 2006 Compensation
ATLANTA - The chief executive of The Coca-Cola Co., Neville Isdell,
was granted $20.9 million in total compensation last year as valued
by the company, according to an analysis of a regulatory filing issued
by the world's largest beverage maker Friday.
The Associated Press calculations of total compensation include salary,
bonus, incentives, perks, any above-market returns on deferred compensation
and the estimated value of stock options and awards granted during
Isdell's compensation includes a salary of $1.5 million. The fair
value of stock and option awards he was granted last year totaled
$13.34 million. Non-equity incentive plan compensation totaled $5.5
million. All other compensation, which included travel and other benefits,
The proxy filing says that Isdell did not receive above-market or
preferential earnings on his nonqualified deferred compensation accounts.
For security purposes, Isdell is required by the company's board to
use company aircraft for all travel, both business and personal. Isdell,
and his immediate family traveling with him, uses the company aircraft
for some personal trips, the filing says. The personal trips are often
scheduled in conjunction with a business trip. Isdell is reimbursed
for the tax liability associated with the personal use of the company
In 2006, personal use of the company aircraft by five senior executives,
including Isdell, was less than 3 percent of the total legs flown.
The company paid for $172,298 in aircraft usage by Isdell and about
$82,000 for the use of a car and driver in 2006.
During 2006, Isdell, Chief Operating Officer Muhtar Kent and Jose
Octavio Reyes, the president of Coca-Cola's Latin America group, were
each provided with a car and driver. The proxy says Reyes and his
spouse were each provided with a specially equipped car and driver
around the clock for security purposes in Mexico City. Kent and his
spouse were provided with a car and driver in Istanbul for security
Reyes' car and driver for the year cost nearly $265,000, the filing
The proxy says club memberships are provided to some senior executives.
Monthly dues are paid by the company.
Coca-Cola provides a comprehensive security program and monitoring
system for Isdell, including monitoring equipment at his homes and
company-paid security personnel. Reyes, based in Mexico City, is provided
with security personnel at his residence as well as monitoring of
his car and his wife's car. Kent was provided with a comprehensive
security system in Istanbul.
AP, after consultations with executive pay consulting firms and accounting
experts, developed its own formula for interpreting the expanded disclosures
U.S. public companies must make starting this year about what they
pay their top executives.
Coca-Cola's annual shareholders meeting is set for April 18 in Wilmington,
Del. The agenda includes the election of 11 directors to serve until
2008, a vote on a company performance incentive plan and a vote on
five proposals submitted by shareholders.
The shareholder proposals include one that calls for the compensation
of Coca-Cola's top five executives to be limited to $500,000 a year,
plus any nominal perks. The proposal seeks that it be applied after
any existing programs now in force for options, bonuses and other
awards have been completed. It asks that severance contracts be discontinued.
The company's board has recommended that the proposal be rejected.
Another shareholder proposal seeks to allow shareholders an opportunity
at each annual meeting to vote on an advisory resolution, to be proposed
by company management, to ratify the compensation of Coca-Cola's top
five executives. The proposal says the vote would be nonbinding.
Coca-Cola's board also has recommended that that proposal be rejected.
Some of the other shareholder proposals involve restricted stock awards
for executives and water issues in India.
FAIR USE NOTICE. This document contains copyrighted material whose use has not been specifically authorized by the copyright owner. India Resource Center is making this article available in our efforts to advance the understanding of corporate accountability, human rights, labor rights, social and environmental justice issues. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner.