Former Coke CEO Ivester gets $17.8 million severance deal

Executive stepped down after sluggish tenure

Beverage industry

March 04, 2000|By BLOOMBERG NEWS

ATLANTA -- Coca-Cola Co. awarded a severance package worth $17.8 million to M. Douglas Ivester, who stepped down as chairman and chief executive Feb. 17 after a two-year tenure marked by slow sales worldwide and a lagging stock price.

The world's largest soft-drink maker also denied bonuses and stock awards last year for top executives --including Ivester and his successor, Douglas Daft -- because of poor sales, according to Coca-Cola's proxy statement filed with the Securities and Exchange Commission.

Daft was given a $750,000-a-year salary as president, the position he took as Ivester's successor, according to the proxy. Daft officially became chairman and CEO last month.

In his severance package, Ivester, 52, will be paid $675,000 annually from 2002 to 2007 as a consultant to Coca-Cola and will get three yearly payments of $1.5 million from his long-term incentive plans. Ivester, a company employee for about two decades, also will get monthly payments of $66,300 from retirement plans and another $56,300 each month for the rest of his life.

He will be paid $675,000 annually from 2002 to 2007 as a consultant to the Atlanta-based company, and get three yearly payments of $1.5 million from his long-term incentive plans.

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