Coke Refreshes Aging Board
Coca-Cola has a very powerful and influential company board over the past decade and a half, as they are able to replace chief executives and influence company strategies successfully. Their board has also been among the oldest as over half of the seventeen elected in 2012 were at least seventy years old. There is going to be drastic changes for the future as two of the oldest directors, the former president and the chairman of investment firm Allen & C o., and James Williams, the former chairman of SunTrust Banks Inc., are retiring. Not only are the oldest of the board stepping down, but the other Coke directors also plan to do so by the year 2015. The new and younger board members plan on directing their money towards smaller but faster drink categories, as well as more acquisitions.
I believe that this will have an effect to all Coca-Cola consumers because now that there will be a new “refreshing” board, they might not know the company and what Coca-Cola represents and is. Although this may be a negative, there are also positives to this change in board as Coke wants to redirect their targets to a larger market of young people, in which younger directors would be needed for. A change in the age of the directors can bring new reinvented ideas as well as keep up with the changing times. The company has also not advertised as much in social media, which hopes to change with the new, younger board of directors.
Written by: Samantha Chin
Source: The Wall Street Journal