Dec. 21 (Bloomberg) -- Coca-Cola Co., the world's largest soft-drink maker, will seek shareholder approval for large
executive severance packages after the International Brotherhood of Teamsters pushed for the change.

Severance payments that exceed 2.99 times an executive's annual salary and bonus will be put to a vote, spokesman Charlie Sutlive said today. The board approved the change in October.

The International Brotherhood of Teamsters proposed the policy at Coca-Cola's annual meeting in April, citing "lavish" packages worth $119 million for former Chairman Douglas Ivester and $36 million for successor Douglas Daft. The proposal received 41 percent of votes, prompting Coca-Cola's board compensation committee to consider changing the policy, Sutlive said.

"In the last decade, Coca-Cola shareholders have seen a revolving door of top executives cash in big rewards while
financial performance lagged," said C. Thomas Keegel, general secretary-treasurer for the Teamsters, in a statement.
"It's time Coke invest in the long-term growth of the company rather than country club dues for outgoing bosses."

About 18,000 Teamsters work for Coca-Cola's bottlers including Coca-Cola Enterprises Inc.

Shares of Atlanta-based Coca-Cola rose 10 cents to $41.32 at 1:12 p.m. in New York Stock Exchange composite trading. The shares have declined 1 percent this year through yesterday. In contrast, shares of competitor PepsiCo Inc. have gained 13 percent in that period.

"We believe this new policy both responds to and is in the best interests of shareowners," said Sutlive.

Most severance agreements will be voted on at Coca-Cola's annual meeting, he said. Special proxy votes could also be held during the year on severance matters.

The article originally appeared in Bloomberg News on December 21, 2005, and was written by  Mary Jane Credeur.