Current Day Compensation Analysis, Discussion And Trends – Coca Cola And Pepsi

Compensation Analysis

Human resource is one of the most vital capitals of any company. As such, companies strive to ensure that they offer their employees favorable compensation packages. Coca-Cola offers its CEO and Chairman of the Board, Muhtar Kent, one of the highest compensations packages in the U.S. The company offers Kent more than $18 million in salary, bonuses, and stock options. Other senior executives of the company receive a much less salary. Coca-Cola’s high compensation of its senior executives has made the company be criticized by various parties. This is due to the fact that the high compensation is detrimental to the wishes of shareholders. The high compensation has resulted in a transfer of wealth from shareholders to the executives of the company. In 2014, Coca-Cola planned to reward its directors billions of dollars worth of stock.

Despite the fact that Pepsi Cola is a much smaller company than Coca-Cola, it has twice as many employees as Coca-Cola. The company offers its CEO and chairman of the board of directors, Indra K. Nooyi, more than $19 million in salary, bonuses, and stock options. Other senior executives of the company receive less than half the compensation package of the CEO. One of the major weaknesses of Pepsi Cola is failure to focus on the value of its employees. The company says very little about how it treats its employees. It also offers little information on the expectations and responsibilities it has towards the employees. Despite the fact that the company has programs that ensure that its employees take part in various school programs and scholarships, it directs very little effort towards them. Pepsi leaves its employees out of its grand scheme of things. It considers them as a means towards an end. Limited focus on employees may be detrimental to long run competitiveness of the company (Shimp & Andrews, 2013).

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