Getting the Message

Criticism of excessive executive pay may finally be hitting home. Reacting to shareholder protests, Coca-Cola reduced the compensation of its chairman Roberto Goizueta $59 million, to a mere $4.5 million. Goizueta received a 10% raise in salary, bonus and incentives but was not offered any stock options. Last year he was awarded 1 million shares, worth $59.4 million, on top of his pay. Coca-Cola’s operating profits had jumped 18% despite a treacherous year; even so, the company wanted to avoid another wave of stockholder complaints.