Financial Times FT.com

Coca-Cola’s new ingredient is performance

By Andrew Ward in Atlanta

Published: April 10 2006 18:17 | Last updated: April 10 2006 18:17

Warren Buffett says it is a pioneering agreement that will align the interests of directors and shareholders more closely than in any other large company. But not everybody is as enthusiastic about the merits of Coca-Cola’s new performance-related boardroom pay scheme.

Some corporate governance experts are worried that Coke’s unprecedented plan to make director compensation entirely dependent on company performance will change the board’s role from watchdog to cheerleader.

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