Coca-Cola to revise executive pay plan after criticism

Associated Press

Coca-Cola is revising its pay plan for executives after shareholders including Warren Buffett expressed disapproval and called it excessive.

The world's largest beverage maker says its long-term incentive program will now distribute the company's shares to a smaller group of executives, while the rest will be rewarded with cash instead. That will mean the total shares authorized to be awarded under the plan will last longer.

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The Atlanta-based company also said it would increase transparency about its equity awards and formalize its practice of share repurchases to keep stockholders' stakes from being diluted.

Coca-Cola's pay plan had come under scrutiny after Wintergreen Advisers took issue with it earlier this year, calling it a "raw deal" for shareholders. Buffett also said he discussed his concerns with Coca-Cola CEO Muhtar Kent.