The AFLCIO (2003b) Reports:
(a) Retirement benefits for top executives are unfair compared to lower level employees working in the production sectors of the company. AFLCIO reports that cooperate executives receive liberal retirement benefit packages, the plans offered to employees are poor and “self funded”.The Proxy Statement for 2003 (Coca-Cola, Inc., 2003b) and Annual Report for 2002 (Coca-Cola, Inc., 2003a), indicated that the inequities are greater than the AFLCIO (2003a) assessment.
Coca-Cola regards the problem with retirement packages as a legal matter and did not regard it as an ethical matter. Thus, a funding program was set up to address the inconsistencies. Coca-Cola created an executive retirement compensation benefit-package and cited it as a required responsibility for taking care of retired executives. Shareholders of Coca- Cola are aware that executives receive to level benefit packages regardless of how well or poor the company performs. As a result, employees are not ranked or filed on performance. Share-Holders and Board of Directors constantly review the company's code of ethics. The aim is to check that the company is not overriding aspects of the law to make provisions for executives,
AFLCIO. (2003a). The Coca-Cola Co. Accessed on the Internet 2010-11-20 at: http://www.aflcio.org/corporateamerica/ paywatch/retirementsecurity/case_coke.cfm
AFLCIO. (2003b). Executive retirement plans: The ultimate CEO perk. Accessed on the Internet 2010-11-20 at: http://www. aflcio.org/corporateamerica/paywatch/retirementsecurity/
Coca-Cola, Inc. (2003b). Proxy Statement 2003. Accessed on the Internet 2003-11-30 at: http://www.cocacola.com