Institutional Investor David Winters Accuses Coke of Illegality

Institutional investor David Winters says Coke management “fell far short of both the spirit and the letter of the federal securities laws governing proxy disclosure,” in regards to executive compensation plan

Transparency issues in financial services once again raised their ugly head, as a Coca-Cola institutional shareholder turned reluctant activist David Winters questioned the failure to disclose secret bonus shares that appeared to benefit senior Coke management.

In a letter to the board of directors released Tuesday, David Winters, founder and CEO of Wintergreen Advisors, said that Coca-Cola’s 2014 Proxy Statement did not adequately disclose secret bonus shares, and as a result “fell far short of both the spirit and the letter of the federal securities laws governing proxy disclosure,”...