Coca-Cola CEO Muhtar Kent announced this morning that he is departing from his chief executive position of the world’s largest beverage producer that is in charge of producing 3.5% of all liquid consumed on planet earth each day. He has been at the helm since July 2008.
I don’t like judging executives based on the stock price changes that occurred during their stewardship because that incorporates a lot of investor sentiment. Instead, I like to weigh the question: What did you actually do to improve business performance?
In 2008, Coca-Cola was earning $1.51 per share in profits. By the end of 2016, Coca-Cola’s profits have only grown to $1.90. That’s only 3% annual earnings growth. You can make the argument that the U.S. dollar skews figures, but even if you tack on an additional dime, we are still only talking about 4% annual growth.
Compared that to the 2000-2008 period … Read the rest of this article!