Coke's CEO (Over)Compensation: How I Voted My Proxy

I just looked at my Coca Cola Inc (KO) Proxy Statement for the annual meet to take place on Wednesday April, 18 2007 in Wilmington, Delaware and was disgusted by how much Board of Coca-Cola decided to pay the CEO. But I will keep holding the stock. I think it's going higher.

I think Neville Isdell is doing alright. Coca Cola is coming back after years of falling behind. The stock is starting to catch up to the positive story. He continues to raise the dividend and buyback stock. I am not complaining about his performance but his pay. He deserves to get paid well but at the end of the day he is just a caretaker. I'm sure he's a nice and talented guy, he serves on charity boards, helps the unfortunate and is probably a great parent. He did not found this company with his own money, he did not invent a new way of doing business. He did not build Coke from scratch like Bill Gates or Larry Ellison with their companies. I get why those guys are billionaire but do we really need CEO billionaires?

I Purchased the bulk of my position in June of 2006 at $43.27 and I'm still holding even after the 15%+ gains I've already enjoyed.

Here is the Compensation Data from the Proxy.

I took Grandma's advice on Coca Cola and voted against every member of the board's compensation committee.

Cathleen P. Black, Chair
Ronald Allen
James D. Robinson III
Sam Nunn

Additionally, I voted against management on their Equity Incentive Plan proposal. I also voted. FOR the shareholder proposals (The Board Recommended a Vote AGAINST) relating to management compensation.

One of the management compensation proposals by Mary F. Morse, of Moorestown, NJ proposes that the remuneration to any of the top five persons named in Management be limited to $500,000.00 per year, plus any nominal perks. Now I think this proposal is too limiting for compensation but I voted for it anyway. Perhaps, if a proposal likes this gets enough votes the compensation committee will wake up out of their slumber.

Disclosure: I own and plan to continue to own Coca-Cola (KO) for the near future.

Comments

[hwood007:]

so did I and I voted against Nunn on another board. I keep hearing guests on CNBC remarks that stockholders can vote by selling their stock. I do not want to vote for CEO pay and I want the board to set CEO pay. But, I do want to vote for honest board members that I feel will look after the best interests of the shareholders. I want to vote against board members I feel need to be replaced. The way board elections work now is there is no free election. I can only vote for candidates to the board selected by other board members and management. In most companies, I cannot vote against them and candidates need only one vote to be elected. I want to be able to vote a board member off the board. I wonder how many of your news staff members actually fill out proxy statements on stock they own? Do they read the annual report?

Being told to vote by selling my stock is an asinine statement. If that idea were taken to its logical end, I would need to sell all my stock until none remained. Anytime a talking head guest (Charlie Gasparino or others) makes the statement “vote by selling your stock” the person doing the interview (Melissa) should take immediate exception to the statement and ask for a better answer.

2007 Apr 16 08:58 AM

[sts1227:]

I usually vote the opposite of what is recommended, feeling they, the board, usually have their best interest at heart, not the stockholder.

2007 Apr 24 02:17 PM