CalSTRS said it will oppose the appointment of four of Coca-Cola Co.'s 15-member board of directors, all members of its compensation committee, and will vote against CEO Muhtar Kent's $25.2 million compensation.
The disclosures were posted on CalSTRS' website Monday in advance of Coca-Cola's annual meeting Wednesday.
CalSTRS spokesman Michael Sicilia confirmed in an interview that the $191.2 billion pension fund plans to vote its 10.7 million shares, worth an estimated $435.9 million, against the board members and the 2014 compensation of Mr. Kent, but declined further comment.
However, in a filing with proxy advisory firm Glass Lewis, CalSTRS states: “The company's pay-for-performance is out of line.”
The compensation vote is advisory and based on Mr. Kent's pay package last year.
California State Teachers' Retirement System, West Sacramento, also voted for a shareholder proposal calling for proxy access.
Mr. Kent did not take his $2.5 million annual cash incentive in 2014 because the company had underperformed last year, but a combination of stock options, salary and changes in his pension value, helped give him a compensation package similar to 2013.
Coca-Cola was the subject of an unsuccessful campaign last year by money management firm Wintergreen Advisors to cut Mr. Kent's and other top executives' compensation. CalSTRS had voted in favor of the compensation package in its advisory vote in 2014.
