Coca-Cola Co. Chairman and CEO, Muhtar Kent's decision to decline his US$2.5 million bonus last year did not impress renowned pay critic David Winters. He said the amount was offset by increases in the value of Kent's stock-based awards.

"The problem is, he's created an impression he took a hit, and he didn't take the hit," said Winters. Winters owns Wintergreen Fund and Wintergreen Advisors, the latter of which owns 2.5 million shares of Coke.

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Kent's total compensation, sans a change in the value of his pension, amounted to US$1.8 million last year.

Petro Kacur, spokesman of Coke, defends the CEO saying that the value this year of the stock and option awards to Kent would be considerably reduced at almost 50 percent less to an estimated US$7.7 million versus the US$15.8 million last year.

"Mr. Winters continues to make statements that are without merit in an attempt to try to grab headlines," Kacur claims.

This contraction in stock and option awards may indicate Coke's performance challenges as its return for total shareholders fell to 5.25 percent versus the 13.69 percent total return on the Standard & Poor 500 Index benchmark.

The CEO refused his bonus 'in light of the difficult but necessary decisions required as the company implements strategic actions to accelerate growth." The beverage giant has been scrambling to raise revenues due to tumbling demand for soft drinks.

Despite Winter's criticism of the company's pay plan and compensation packages, it was approved by the board. In response to this, Coke made changes such as disclosing more details about pay calculations, which were eventually praised by Winters and Wintergreen's CEO Liz Cohernour.

In the meantime, the pay critic asserts that his firm will cast its ballots against Coke's pay in an advisory vote at the company's annual meeting on April 29.

TagsCoke, Coca Cola, Muhtar Kent, David Winters