Yahoo Finance It's Unlikely That The Coca-Cola Company's (NYSE:KO) CEO Will See A Huge Pay Rise This Year
Key Insights
Coca-Cola's Annual General Meeting to take place on 1st of May
Total pay for CEO James Robert Quincey includes US$1.60m salary
Total compensation is 77% above industry average
Coca-Cola's EPS grew by 11% over the past three years while total shareholder return over the past three years was 26%
Under the guidance of CEO James Robert Quincey, The Coca-Cola Company (NYSE:KO) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 1st of May. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Coca-Cola
How Does Total Compensation For James Robert Quincey Compare With Other Companies In The Industry?
Our data indicates that The Coca-Cola Company has a market capitalization of US$261b, and total annual CEO compensation was reported as US$25m for the year to December 2023. That's a notable increase of 8.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.6m.
In comparison with other companies in the American Beverage industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$14m. Hence, we can conclude that James Robert Quincey is remunerated higher than the industry median. What's more, James Robert Quincey holds US$30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.6m | US$1.6m | 6% |
Other | US$23m | US$21m | 94% |
Total Compensation | US$25m | US$23m | 100% |
Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. It's interesting to note that Coca-Cola allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at The Coca-Cola Company's Growth Numbers
Over the past three years, The Coca-Cola Company has seen its earnings per share (EPS) grow by 11% per year. It achieved revenue growth of 6.4% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has The Coca-Cola Company Been A Good Investment?
The Coca-Cola Company has served shareholders reasonably well, with a total return of 26% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Coca-Cola that investors should be aware of in a dynamic business environment.
Important note: Coca-Cola is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
