Review overall business strategy and key business drivers.

Its primary objective as a company is to grow shareowner value. To do so, it operates in accordance with three guiding objectives. First, it works to fuel growth within the industry, increasing overall demand for beverage products. Second, it focuses on innovation in every area of the business, including marketing, packaging, and people management. Third, it manages for the long-term, making investments today that will pay off in the future. As key business drivers the company is managed from an economic value added (EVA) and economic profit viewpoint. EVA and economic profit are closely linked and serve as decision making tools that allow all associates to ensure they are creating shareowner value with every decision they make and every action they take. Assess alignment of current incentive and stock option programs with those drivers.

Annual incentive program The performance of each division is assessed versus its objectives for the year relative to a funding matrix. The matrix weights volume and profit equally. If divisions meet their objectives exactly, then incentives are funded at 100% of target. If they exceed objectives, they are funded at greater than 100%, and if they fall short, they are funded at less than 100%. The targeted pool itself is simply the total amount required to award each participant in the plan their exact target, which is expressed as a percent of base salary (e.g., 10%, 15%) based on job grade level.

Stock option program

Option pools are funded based on performance against unit case sales and economic profit objectives, and individual option grants are determined based on specific contribution to those objectives. Stock option awards are considered annually and fall within a minimum to maximum of a specified range, which varies by grade level and is driven by targeted total compensation levels versus the marketplace. Redesign incentive and stock option programs to more closely match business needs.What I give this compensation programs link to overall compensation management that we learnt in course. When we design compensation program, we look at two important components that are, Asses and design incentive framework

Use right strategy for organization

Assess and design incentive framework- Analyze where are your organizations primary strengths and most serious weaknesses?- We should have a strong strategic plan, value proposition, clear roles and operating procedures strategy so all we need to know is what creates the greatest value for our customers and shareholders. These key success factors provide the desired focus for making decisions and taking actions that produce desired results.

- We are able to attract, develop and retain these individuals capabilities so all we need to know is what your people need to do differently. This should enable our organization to fully utilize the key competencies it needs now and in the future to succeed.

- We need to know is what needs to be improved. This should provide your organization with the ability to understand, display and discuss the critical drivers of desired performance.

- We should have highly competitive compensation plans, high impact cash incentive plans and equity participation, creative and exciting recognition programs. We also provide many opportunities for people to be challenged in their job, grow and develop, and see the organization as a place to invest ones career rewards so all we need to know is what needs to be improved. Our organization needs the systems and practices to encourage and reinforce the desired actions necessary for our success.

Use Right Strategy for Organization:

When we work with a company to develop their total reward strategy, we first seek to understand its business model, vision and strategy, as well as, its critical success factors. We understand how the organization operates, the accountabilities of key roles and the principles reflected in the design of the organization. Further, we work to identify their true marketplace for talent external labor and talent markets and internal movements through promotions and career paths. We then summarize this background information and translate it into the key requirements for each program that constitute their compensation and rewards.

As stated above, rewards include those programs, services and experiences that impact the commitment and actions of people. Some are available to virtually everyone because they are employed by the organization (or for a specific level or group within the organization) these are foundation type programs. In addition, there are programs and rewards individuals receive because of their performance or the performance of the group to which they belong. In these type of reward programs not everyone receives them, and the amount depends on many factors related to the performance of the individual or group.

Finally, there are programs that are clearly compensation based (e.g., salaries, variable cash compensation, equity based plans, etc.), and there are those that are non-compensation and are part of the opportunities within the workplace (e.g., employee benefits, services, recognition award programs, promotions, career opportunities, training and development). The combination of reward programs and practices define the nature of the relationship between the individual and the company.

This framework can help the company organize and examine the programs it uses and determine where changes should be made. This framework is depicted in the figure below:

Salary & WagesCash & Equity based

* Job/market based payvariable pay

* competency based pay* Indvl/team variable pay

Workplace * Broad bands* company profit sharing

* Geographic differentials* Stock options

* Merit/market increases* Long term cash plans

Emp benefits & ServDevelop & Recog

* Health & Life insurance* Public/private recog

Total Compensation* Retirement & Investment* Verbal/informal recog

* Training & Development* Personal rewards

* Company events* Promotions

* Employee services* Professional Dev

This simple framework as extremely helpful in identifying the similarities and differences between their reward programs. We find that the real value of this framework lies in answering several important questions:

1. Which of these programs (or categories) does the organization currently use? Which ones are most important to the overall organization and why?

2. Which of these programs are the most important to specific groups of employees and why?

3. Where (among the types of programs or services) does the organization spend the most money? Where does it spend the most time and effort?

4. Which of these programs are the most and least effective in supporting the mission, strategy and culture of the organization? Where does the application of one program compliment, conflict, or off-set the inherent weaknesses of another reward program?

5. What are the common themes that should exist across all these programs? What are the purpose and objectives of specific programs for the organization?

Implement and communicate the changes.