Warren Buffett calls out Coke’s ‘excessive’ executive pay plan

Some investors believe that the equity plan will take billions of dollars from shareholders

Nearly one month after the initial dispute rang out between shareholders of The Coca Cola Company and the company’s executives over executive pay, Warren Buffett has come out criticizing the plan. 

The equity plan — passed on April 23 without Buffett’s vote — has been decried by shareholders as a way for executives to make money by doing nothing. David Winters, an investor in Coca Cola and a hedge fund manager, led the way for angry investors to claim that the plan will erode the share value of Coca Cola’s shares, and it will dilute the value that belongs to existing shareholders over time by 14.2 percent. The plan is one based in equity investment, and will award executives around $13 billion over four years — $13 billion that Winters and others claim will be unfairly taken from shareholders.

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Juliana Kenny

Juliana Kenny is a contributor to InsideCounsel.com, covering a range of topics including patent litigation, conflict mineral laws, executive compensation, and antitrust regulation. Juliana earned B.A.s...

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