Is Coca-Cola CEO Pay Justified or Excessive?

By

ACKNOWLEDGEMENT

This dissertation is an opportunity for me to extend my regards to my research supervisor, my beloved friends, and my family for their untiring support that they furnished throughout my research. I am grateful to them for their belief in me and the guidance that they provided me without which I would have never been able to work on and complete this research. It also signifies my own views and does not closely relate to the university.

Signature: _______________________

__________________________

DECLARATION

I, (), would like to affirm that all information and facts entailed in this research account for my own efforts and work devoid of any assistance, and this dissertation has not been succumbed previously for any assessment at academic and professional level, as well. It also symbolises my very own viewpoints and not necessarily those that are related with other university.

Signed __________________ Date _________________

Abstract

This dissertation critically discovers the stages and models involved in the process of executive compensation. All the segments of this research address two major subjects. The process of designing and reimbursing executive compensation and whether it is justified or excessive with respect to various factors associated with the company's and CEO's performance, combine to form major parts of this dissertation. For this study, CEO's pay of one of the best and number one company of soft drink maker is selected and that is Coca-Cola. Ultimately, it examined the relationship between executive compensation of Coca-Cola's CEO and its appropriateness. The results and findings of this study are based on the data collected online from professional staff working in Coca-Cola UK. The research revealed that majority of the people working at middle and low level positions accused that Coca-Cola CEO's pay and compensation is excessive. However, information and facts gathered through former literature on Coca-cola CEO Compensation disclosed that the aforementioned perceptive is not completely true.

This dissertation provides a wide range of information about the importance of CEO compensation for the respective company and the industry. It also provides theoretical concepts, former and current literature, and practical interpretations and lastly concludes the research by highlighting some important points discussed and analysed in the overall research.

Key Words: Executive, compensation, CEO, pay, Coca-Cola, company, profit, revenue, justified, excessive, salary, incentives, organisations, firms.

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Background to Research1

1.2 Management Focus1

1.2.1 Criticism on CEOs Being Overpaid2

1.3 Background of Coca-cola2

1.4 Rationale and Significance3

1.5 Statement of Purpose4

1.6 Aims and Objectives4

1.6.1 Main Aims5

1.6.2 Five Objectives5

1.7 Research Questions6

CHAPTER 2: LITERATURE REVIEW7

2.1 Definition15

2.1.1 CEO Compensation16

2.1.2 Other Factors Affecting CEO Compensation17

2.2 Overview of Coca-Cola UK CEO and his Remuneration Package17

2.3 Decision Making for CEO Compensation Packages19

2.4 How Can Coca-Cola UK CEO Keeps Coke's Profit Sparkling?19

2.5 Empirical Determinants of Executive Compensation20

2.5.1 The Sector of the Organisation20

2.5.2 Size of the Organization21

2.5.2 The CEO's Gender21

2.6 Executive Motivation and Company Performance21

2.7 The Concept of Rewards: A Wider Perspective22

2.7.1 Financial Rewards22

2.7.2 Conceptual Context23

2.7.3 Non-Financial Rewards24

2.8 Use of Rewards in Executive Motivation25

2.9 Factors and Approaches that Constitute Executive Motivation27

2.9.1 Intrinsic Motivation28

2.9.2 Extrinsic ...