for its executives following inquiries from its shareholders led by American business magnate Warren Buffett.
Much like its partnered pledge with PepsiCo to reduce the number of calories in their beverages by 20 percent before 2025, Coca Cola plans to do the same reduction of bonuses to its executives.
The move came after shareholders questioned global money managing company Wintergreen Advisers' plan to give a hefty amount of bonus to Coca Cola executives while the company is experiencing a slow growth rate.
The equity plan would reportedly give executives a handsome bonus totalling $13 billion over the next four years, which will come from investors' holdings.
Buffet owns multinational conglomerate holding company Berkshire Hathaway, which has majority of Coca Cola's shares.
Buffet agreed that the executive's bonuses were "excessive."
Because of the pressure coming from investors, Coca Cola has changed its long-term incentive program to now allocate its shares to smaller number of executives and will give the rest cash, preventing reduction of the ownership percentage of current shareholders.
"The flexibility of our 2014 Equity Plan enabled us to create an even stronger program within the existing plan that reinforces our pay-for-performance approach to compensation," stated by Muhtar Kent, chairman and CEO of Coca Cola.
"Further to the approval of the 2014 Equity Plan in April of this year, we have developed Guidelines that further align compensation to the long-term interests of shareowners," Kent added.
There have been increasing concerns regarding wages and incentives received as the difference and the gap between the pay the top-level executives get compared to the lower level workers widened in the past few years.
Furthermore, the executives of Britain's 100 biggest companies reportedly received 143 times more than the average workers in the same companies.
The Royal Bank of Scotland, ITV, Ocado, WPP and BG Group were also questioned by shareholders regarding their pay methods this year.
