ATLANTA Coca-Cola executive receives bonus despite earnings slump
ATLANTA (AP) -- As Coca-Cola Co.'s earnings dropped and it laid off employees, Chairman Doug Daft received a $4 million bonus on top of his $1.5 million salary in 2002, according to a company filing Wednesday.
Daft was not awarded any stock options, but his bonus increased from 2001, when he received $3.5 million, according to a company proxy statement filed with the Securities and Exchange Commission. His salary remained unchanged.
Coke's profit fell 22.5 percent in 2002, and the company announced it would cut about 1,900 employees in North America and Germany.
"Mr. Daft led the company through considerable progress over the past year in achieving ... strong financial results, growing our brands, strengthening our bottler relationships and building our leadership team," the company said.
Coke's other top executives received pay raises.
Vice Chairman Brian Dyson's compensation rose from $416,667 in 2001 to $1 million in 2002, but he was with the company for less than half of 2001 and his salary did not increase, Coke said. He received a $1.5 million bonus, compared to a $875,000 bonus in 2001.
President and chief operating officer Steven Heyer made $885,000 with a $2 million bonus, after being paid $643,333 with a $1.5 million bonus in 2001.
Coke shares, which closed at $37.55 Wednesday, are down 21 percent from their close of $47.60 at the same point a year ago.