8-KMaterial AgreementsExhibits & Filings

COCA COLA CO 8-K Report, Material Agreement (Sep 12, 2006)

Filed September 12, 2006For Securities:KO

Summary

This 8-K filing from The Coca-Cola Company (KO) primarily concerns the definitive material agreement regarding the employment of Dominique Reiniche, President, European Union Group. While this is a standard operational disclosure, investors should note the compensation package for Ms. Reiniche, which includes a base salary of 500,000 euros, a $100,000 sign-on bonus, and participation in incentive and equity programs. The agreement also outlines termination provisions, including a significant severance package of 24 months' pay if terminated without cause and a six-month non-compete clause with corresponding compensation. The details of this executive employment agreement, while specific to an individual and a subsidiary, reflect the company's commitment to retaining key leadership in important regions like the European Union. The inclusion of performance-based compensation and equity programs suggests a focus on aligning executive incentives with company performance. Investors might view this as a positive sign of management stability and strategic focus on European operations, though the specific financial impact is minor in the context of the entire company.

Key Highlights

  • 1The Coca-Cola Company subsidiary Refreshment Services, S.A.S. entered into a material employment agreement with Dominique Reiniche, President, European Union Group.
  • 2The agreement is effective from May 1, 2005, and details terms and conditions for Ms. Reiniche's employment.
  • 3Key compensation elements include an annual base salary of 500,000 euros and a $100,000 sign-on bonus.
  • 4Ms. Reiniche will participate in annual incentive plans and long-term equity programs (stock options, performance share units).
  • 5The agreement includes benefits such as health insurance, a retirement plan, and vehicle/driver access.
  • 6Significant termination provisions are in place: 24 months' pay if terminated without cause (excluding collective bargaining agreement requirements).
  • 7A six-month non-compete clause is included, with Ms. Reiniche receiving six months' pay in lieu of other termination indemnities for agreeing to this restriction.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a definitive material agreement concerning the employment of Dominique Reiniche, the President of The Coca-Cola Company's European Union Group, with its subsidiary Refreshment Services, S.A.S.

The agreement includes an annual base salary of 500,000 euros, a $100,000 sign-on bonus, and participation in incentive and equity-based compensation programs. She will also receive standard benefits and perquisites.

The agreement includes a six-month non-compete provision. In exchange for agreeing to this restriction, Ms. Reiniche will receive six months of pay, in addition to any other applicable termination indemnities.

If Refreshment Services terminates the agreement for reasons other than serious or gross misconduct, Ms. Reiniche is entitled to twenty-four (24) months of pay, excluding any mandatory termination indemnities required by the applicable collective bargaining agreement.