Compensation Management Assignment

Compensation Management

Question 1

Coca-Cola Company is a multinational corporation founded in 1892. Headquartered in Atlanta, Georgia, the conglomerate is engaged in the production and sale of syrups and non-alcoholic beverage concentrates. The company has more than 2,800 products in its global market which cuts across more than 200 countries. It is the leading beverage manufacturer in the world. Coca Cola’s compensation and benefits plan is considered one of the best internationally, benchmarked against other international, high-performing employers. The company offers different developmental opportunities for their workers including training programs for its outstanding staff. Utilizing the Peak Performance System, the organization’s performance management and development plan, together with hundreds of global individual’s development platforms, employees and their seniors, frequently evaluate development, succession plans and transfer programs the world over (Warfield, Weygandt, & Kieso, 2008).

Compensation Plan

With over 130,000 employees, Coca Cola maintains a sophisticated compensation plan. First of all, employees are entitled to a base salary which is determined by individual job grades and the position held. Secondly, the company awards annual incentives to employees who achieve outstanding results. A performance incentive plan is used to guide this annual practice. Additionally, the company maintains a long-term equity remuneration plan mainly for its top staff members. The plan is used as a retention strategy to prevent high labor turn-over that would adversely affect the operations of the corporation. Coca Cola also offers various benefits that caution employees against financial misfortunes associated with occurrences such as illness and death. One of the best compensation practices by Coca Cola company is the 2014 compensation plan that formed a pool of 500 million shares that would be used to compensate approximately 6,000 employees. The leadership of the organization considered this as a sound equity plan that allowed workers to act as owners of the company in their own small way. However, there are challenges associated with this program. The equity pay plan ended up benefiting the top management at the expense of the owners of the conglomerate. Initially, the management of the company was set to receive 14 percent of the corporation’s…