At the forthcoming annual general meeting of Coca Cola (18 April 2001), shareholders will be called upon to vote a shareholder' resolution forbidding company executives to cash in on stock options within one year of the announcement of a workforce reduction of more than 1%.
It is known that an important reduction in the workforce is often accompanied by an increase in share value, therefore, executives should not be allowed to benefit from a situation which is detrimental to the laid-off workers. Should a reduction in employment be proven a necessity for the survival of the company, this would be reflected in a durable increase in share value. Consequently, executives have everything to gain by waiting one more year before they exercise their options…
