Dive Brief:
- Coca-Cola will scale back a generous compensation plan for executives that had attracted complaints from shareholders and others.
- The world's largest beverage company is creating a new plan that offers fewer stock options, has a longer vesting period, and puts more emphasis on performance.
- The original plan attracted the ire of some shareholders. Top Coca-Cola shareholder Warren Buffett called the plan "excessive," but did not vote against it.
Dive Insight:
Sure, this is good news for shareholders -- particularly for Buffett. But it's hard to get excited about it. If you own a few shares of Coke, you likely won't notice much change. If you own millions of shares, however, it's conceivable that you could make substantially more money when you cash out -- if the modified plan helps prop up the stock price.