One year later…

June 24, 2004

Even though the Wall Street Journal noted that outgoing Coca-Cola (KO) executive Daniel Palumbo, 46, “didn’t live up to expectations” as chief marketing officer, he’s still likely to depart the company better off than when he arrived from Eastman Kodak (EK) a year ago. Under Palumbo’s employment contract, signed June 9, 2003, Palumbo was guaranteed a bonus for 2003 equal to 90% of his $550,000 base salary and about 135,000 Coke options (though it’s not clear from the contract or other SEC filings how many he’ll get to keep) and about 5,000 restricted shares of Coke stock. Under the contract, Palumbo will be required to pay back his $200,000 signing bonus and probably won’t be able to get much of the $429,000 in long-term incentive compensation. Still, as the Journal noted last week (no link subscription required), Coke’s board tends to be very generous with its outgoing exexcutives, even those who weren’t superstars, so who knows what Palumbo will eventually wind up with.

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