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Home Publications Blogs Beat the Press What Is Richard M. Daley Getting Paid $180k a Year For if Coca-Cola's Management Is Ripping Off Shareholders for Tens of Billions of Dollars?

What Is Richard M. Daley Getting Paid $180k a Year For if Coca-Cola's Management Is Ripping Off Shareholders for Tens of Billions of Dollars?

Tuesday, 25 March 2014 07:15

That what readers of Andrew Sorkin's column on management bonuses at Coca-Cola will be asking. Sorkin cites analysis from money manager David Winters showing that Coca-Cola has set aside $24 billion as bonuses for senior management in recent years. The 2013 set asides alone came to an average of more than $2 million for each eligible person.

Richard M. Daley is a director of Coca-Cola. As a director it is his job to make sure that management does not rip off shareholders by paying themselves excessive salaries. He was paid almost $180,000 last year for his work as a director. People may be asking now what exactly he did for this money.

Comments (6)Add Comment
written by jamzo, March 25, 2014 8:56
your post reminded me of new yorker review of Thomas Piketty's new book that i read last night...particularly this part..

"Defenders of big pay packages like to claim that senior managers earn their vast salaries by boosting their firm’s profits and stock prices. But Piketty points out how hard it is to measure the contribution (the “marginal productivity”) of any one individual in a large corporation. The compensation of top managers is typically set by committees comprising other senior executives who earn comparable amounts. “It is only reasonable to assume that people in a position to set their own salaries have a natural incentive to treat themselves generously, or at the very least to be rather optimistic in gauging their marginal productivity,” Piketty writes.

Many C.E.O.s receive a lot of stock and stock options. Over time, they and other rich people earn a lot of money from the capital they have accumulated: it comes in the form of dividends, capital gains, interest payments, profits from private businesses, and rents. Income from capital has always played a key role in capitalism. Piketty claims that its role is growing even larger, and that this helps explain why inequality is rising so fast."

John Cassidy New Yorker March 31, 2014
Forces of Divergence
Is surging inequality endemic to capitalism?
written by Last Mover, March 25, 2014 9:19

Don't be so hard on Daley. Maybe his only source of income is tips like a waiter, and he happens to be really good at serving up what is asked of him.
written by Jennifer, March 25, 2014 10:26
People may be asking now what exactly he did for this money.

Really will not be holding my breath on that one, since nobody is asking him about the pensions he didn't pay into, the parking meter deal that took money from every driver in Chicago and gave it to Morgan Stanley, or the many "sweetners" (i.e. payouts) he gave to businesses relocating to downtown Chicago for the sake of a dozen office jobs.
Maybe when people ask those questions they could ask about his director duties?
What one CEO looked for in a board of directors, years ago.
written by John Wright, March 25, 2014 10:28
Around 1978 I went to a school lecture given by a visiting CEO.

One student asked, "What do you look for in a Board of Directors?"

His reply, "Twelve men who can say "yes"".

Maybe the BOD playbook hasn't changed over the years.

It simply has a different cover, "Maximize Shareholder value".

written by Larry Signor, March 25, 2014 3:48
Stylistic example, but just another well of worker ant eating the less fortunate worker ants. But, on reflection, this may be where the disease incubates.
Curse you Coca-Cola
written by dave, March 26, 2014 5:00
I own stock in this company. They do pay dividends pretty well, but this is larceny I say, larceny!

Of course if I sell the damn stock I have to pay taxes on it - and I never sell stocks unless something really bad goes down.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.