Good for Coke. They announced yesterday that its Board will only get paid if the company does well as measured by its earnings per share. If the earnings don’t perform well, they get nothing! Warren Buffett is praising it and the NY Times is calling it "innovative."
It makes total sense from a reputation standpoint, something Coke desperately needs to manage. It enables them to show their constituents that they are taking their performance seriously and they care deeply about creating a transparent and equitable culture that holds the Board accountable. It also shows the public that the Board and the company’s investors are in this together and none of them are going to reap any benefits if the company’s share price performs poorly. It’s a great example of actions speaking louder than words — something we desperately need in today’s corporate world.
Let the actions drive the PR, not the other way around.