Executive Compensation

Executive Compensation. Roberto Goizueta did a superb job as head of soft-drink juggernaut Coca-Cola. During the 1980s and 1990s, Goizueta set an enviable standard for CEO performance in terms of global brand development, market share expansion, profitable asset deployment and market value creation. From when Goizueta took charge in 1981 until his death in 1998, Coca-Cola revenues grew at roughly 8% per year, earnings per share soared more than 16% per year, and its stock price skyrocketed a whopping 27% per year. In light of the company's outstanding performance, one can understand why the Coca-Cola board of directors awarded Goizeta generous salary, bonus and stock awards totaling over $1 billion dollars during his tenure.
A. Defend the hypothesis that Roberto Goizeta's accomplishments as CEO were worth $1 billion in total compensation.
B. Defend the hypothesis that nobody, not even Roberto Goizeta, is worth $1 billion in total compensation.

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