NEW YORK (AP) — Coca-Cola Co. gave its CEO a pay package worth $21.2 million last year, up 10 percent from the previous year, as the world's biggest soda maker sold more of its drinks and expanded overseas.
The raise for Muhtar Kent was largely the result of his stock and option awards, which rose to $13.1 million from $10.8 million. His base salary also rose, to $1.35 million from $1.2 million in 2010.
His performance-based cash bonus fell to $6 million, however, down from $6.5 million. The bonus is based on whether executives reach predetermined goals set by the company. Other perks and compensation — including use of the company's aircraft and contributions to retirement savings — rose 3 percent to $757,000.
Kent, 59, has served as Coca-Cola's top executive since 2008. The Atlanta-based company, which has more than 500 brands including Fanta, Sprite, Dasani and Minute Maid, weathered the recession largely by spending more on advertising, new products and plants.
Like many other U.S. companies, Coca-Cola has also looked overseas for growth, particularly in emerging markets like India and China. In North America, the company has been raising prices and offering smaller package sizes.
For its fiscal 2011, Coca Cola said its global volume grew 5 percent, helped by strength in emerging markets such as Latin America. Its revenue rose 33 percent to $46.54 billion.
Shares of Coca-Cola are up almost 6 percent from a year ago.
The Associated Press calculates executive pay by adding salary, bonuses, perks, above-market interest on deferred compensation and the estimated value of stock and stock options awarded during the year.
The formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2011 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. The number is just an estimate and the amount an executive ultimately receives will depend on the performance of the company's stock. Most stock compensation programs require an executive to wait a set time to receive shares or exercise options.