The Coca Cola Company on Friday announced the stepping down of its current Chief Executive Officer, CEO Muhtar Kent after nearly a decade at the helm.
James Quincey, the company’s current president and chief operating officer, will succeed Kent as CEO on May 1, 2017. Kent will continue as chairman of the board of directors, the company announced Friday in a move that has been unanimously approved by Coca-Cola Co. board.
“Managing The Coca-Cola Company to ensure our long-term growth requires a thoughtful and orderly succession planning process,” Kent said in a statement. “I have been engaged with our Management Development Committee and the full Board on talent development and succession discussions throughout my tenure as CEO. We are certain that James Quincey is prepared for these new responsibilities and is the absolute right choice to lead our company and system into the future.”
Coke (KO) shares were up more than 2% in early trading Friday to $41.87.
Kent, 64, who succeeded Neville Isdell as CEO in July 2008, joined Coca-Cola in 1978 and rose through the marketing and operations ranks to handle bottling operations in 12 countries in 1995 as managing director of Coca-Cola Amatil-Europe. He rejoined the company in 2005 as president and COO of the company’s North Asia, Eurasia and Middle East Group after six years as president and CEO of the Efes Beverage Group.
“Muhtar has been a catalyst for change at The Coca-Cola Company – driving the transformation of our global bottling system, expanding our product portfolio and making sustainability a business imperative,” said Quincey, 51, a 20-year veteran at the company. “I am committed to continuing my strong partnership with Muhtar, our talented management team and associates, and our valued bottling partners to continue this momentum and capture the enormous opportunities in front of us.”
Billionaire investor Warren Buffett, whose investment firm Berkshire Hathaway owns 400 million Coca-Cola shares, valued at about $16.4 billion, offered comments on the succession plan in the company’s official release: “I know James and like him, and believe the company has made a smart investment in its future with his selection.”
Buffett’s son, Howard Buffett, on Thursday announced that he would not seek re-election to the Coca-Cola board of directors.