Is The Coca-Cola Company(NYSE:KO) or PepsiCo, Inc.(NYSE:PEP) Winning The Public Relations Battle?
New York, NY – GDP INSIDER – 10/07/2014.
This article discusses two beverages companies: The Coca-Cola Company(NYSE:KO) and PepsiCo, Inc.(NYSE:PEP)
The Coca-Cola Company(NYSE:KO) has shelved its intentions to give its top executivies a rather large payment after facing staunch criticism from investor Warren Buffett. The company’s biggest shareholder argued against the company’s intentions to give 340 million shares, worth a total value of $13 billion, to Coca-Cola’s top executives. And as with most arguments Buffett is involved in, the world’s most-famous investor won. The company’s executives will now be receiving cash bonuses and the stock options will be reduced.
Buffett not only has a strong interest in Coca-Cola, but also fast food chain Burger King. The latter company sells Coca-Cola at its location and recently acquired Tim Hortons, a company that had previously flip flopped between Coca-Cola and Pepsi on several occasions.
The Coca-Cola Company’s main competition, PepsiCo, Inc.(NYSE:PEP), named David C. Page to its board of directors on Sept. 19th. Page is a professor of biology at the Massachusetts Institute of Technology and serves as an investigator at the Howard Hughes Medical Institute. Also serving as the director of the Whitehead Institute of Biomedical Research, Page is engaged in cancer research, immunology, and developmental biology.
PepsiCo’s decision to add Page onto its board of directors could be meant to suggest that the company is more dedicated to decreasing the health risks associated with its products. The company, whose major brands include Pepsi Cola, Mountain Dew, and Lay’s, is involved in a business that is often criticized by those who are seeking to make America a more healthy place. For speculation’s sake, adding such a prominent researcher to the company’s board may help to change how PepsiCo is perceived in the public eye.