8-KLeadership ChangesExhibits & Filings

COCA COLA CO 8-K Report, Executive Changes (Dec 19, 2007)

Filed December 19, 2007For Securities:KO

Summary

The Coca-Cola Company (KO) filed an 8-K on December 19, 2007, detailing changes to its Board of Directors and non-employee director compensation. A key development is the election of Jacob Wallenberg, Chairman of Investor AB, to the Board, effective January 1, 2008. This move expands the Board's size to 13 members and signifies a strategic addition with Mr. Wallenberg's extensive international business experience. Additionally, the Company amended its Compensation Plan for Non-Employee Directors. For newly appointed directors, there will be a cash payment of $175,000 for their first 12 months of service, in lieu of participating in the performance component of the compensation plan during that initial period. This change aims to provide immediate compensation while aligning future participation with existing directors. Both Mr. Wallenberg and Alexis M. Herman, who joined the board in October 2007, will receive this initial cash compensation.

Key Highlights

  • 1Jacob Wallenberg elected to the Board of Directors, effective January 1, 2008.
  • 2Board size increased to 13 members.
  • 3New compensation structure for non-employee directors: $175,000 cash payment for the first 12 months of service.
  • 4This cash payment replaces participation in the performance component of the Compensation Plan for the initial 12-month period.
  • 5After 12 months, new directors will participate in the Compensation Plan on the same basis as other directors.
  • 6Mr. Wallenberg appointed to the Public Issues and Diversity Review Committee and the Committee on Directors and Corporate Governance.
  • 7Alexis M. Herman also to receive the new director cash compensation for her first year.

Frequently Asked Questions

While the filing doesn't state the explicit reasoning, Mr. Wallenberg's position as Chairman of Investor AB suggests an intention to leverage his significant international business experience and corporate governance expertise for The Coca-Cola Company's strategic direction.

New directors will receive a fixed cash payment of $175,000, paid quarterly, during their first 12 months of service. This is a change from immediate participation in the performance component of the compensation plan.

The new structure provides a guaranteed cash compensation for the initial period of a new director's tenure. After the first 12 months, they will then participate fully in the existing performance-based compensation plan, ensuring alignment with long-term company performance over time.

No, the filing indicates that this amended compensation plan specifically applies to the first 12 months of a *new* Director's tenure. Existing directors will continue to participate in the Compensation Plan on its existing terms.