Posted on: Thursday, June 10, 2004

Coca-Cola president resigns

By Harry R. Weber
Associated Press

ATLANTA — The Coca-Cola Co.'s No. 2 executive is stepping down after being passed over for the top job at the world's biggest beverage maker, the latest in a string of high-level departures. Now some are wondering: Who will be next?

The company said yesterday that Steve Heyer, the company's president and chief operating officer, will leave by mutual agreement after a transition period of several months. His plans beyond that were not disclosed.

Coca-Cola shares slid 85 cents to close at $51.76 on the New York Stock Exchange.

"Part of the problem with Coke has been a never-ending series of executive-level changes," said James Owers, a finance professor at Georgia State University. "That appears to be causing the market considerable anxiety."

E. Neville Isdell, 60, a veteran Coca-Cola system executive who was named last month to replace Doug Daft as chairman and chief executive, said the decision that Heyer would leave came after discussions he had with Heyer over the past week.

Spokeswoman Sonya Soutus would not say who initiated the decision.

Some analysts have speculated that more changes could come under Isdell's watch as he seeks to restore confidence in a company that is posting strong earnings but has had public image problems amid federal investigations and the executive departures.

In addition to Heyer, 51, the Atlanta-based company's chief executive, general counsel, human resources boss and the head of its North American division announced their departures in the past year.

J.P. Morgan analyst John Faucher said in a research note yesterday that the main question over the next couple of weeks will be how Isdell and Coca-Cola address Heyer's departure. Like other analysts, Faucher believes more changes could come.

"We think that a reorganization of the senior management reporting structure could be in the works, which would broaden the bench at the top," he said.