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For Diversity, It's the Real Thing: Coca-Cola Names Muhtar Kent CEO
By Jennifer Millman
December 07, 2007
There's a new Fortune 500 CEO, Muhtar Kent, at a company that has what may be the nation's greatest diversity comeback story: The Coca-Cola Co.
Kent, who is of Turkish descent, appears to have the same commitment to diversity as his predecessor, E. Neville Isdell. Coca-Cola named Kent CEO, effective July 1. Many anticipated the appointment after Kent became president and chief operating officer, overseeing all business operations, in December.
(See also: Coca-Cola Names Muhtar Kent COO)
Current CEO and chairman Isdell, who took the helm in 2004 and personally recommended Kent's appointment to the board of directors, will retain his position as chairman of the board until April 2009.
Isdell led Coke's transformation from a $192.5-million racial-discrimination lawsuit--one of the highest-profile discrimination cases in recent history and the largest racial-bias settlement--to a national diversity leader. By all accounts, Kent is as committed to diversity as his predecessor. Coca-Cola is No. 4 in The 2007 DiversityInc Top 50 Companies for Diversity®.
To find out more about Coca-Cola's amazing transformation into a national diversity leader, read the Jan./Feb. 2007 issue of DiversityInc magazine for exclusive interviews with Isdell, court-appointed task-force chair and Coca-Cola board member Alexis Herman.
Isdell views Coca-Cola's inclusive global work force as an asset to be maximized; he created the infrastructure and now is putting a veteran in the position to capitalize. Prior to becoming COO in December 2006, Kent was president of Coca-Cola International. Kent initially joined Coca-Cola in 1978, holding ascending marketing and operational roles until becoming East Central European Division president in 1989, a position in which he oversaw 23 countries and managed the re-launch of Coca-Cola in East Central Europe, rapidly achieving market leadership in a space that the company maintains today.
"The Coca-Cola Co. is an enterprise of sustained, long-term growth. Diligent, detailed succession planning is a vital part of that growth plan. This next management step, which draws on the successful partnership between Muhtar and me, ensures that we will continue to grow and enhance Coca-Cola's business around the world," Isdell said in a statement. "We are very certain that Muhtar is prepared for this next transition in management responsibilities and is the absolute right person to take our Company to the next level of performance."
"Management succession is the key final measure of any CEO's success, and I will do all I can to ensure our progress is secure for many years ahead," added Isdell.
As COO, Kent supervised key initiatives and acquisitions, while the company experienced strong volume and double-digit earnings growth. As James D. Robinson III, chairman of the Committee on Directors and Corporate Governance, said in a statement, this appointment marks a "seamless transition."
"Having worked closely with Muhtar for nearly 20 years, I know that his combination of industry knowledge, passion for operational excellence, strategic vision and high level of interpersonal skills is the ideal blend to take our company forward," Isdell said. "Muhtar is an outstanding example of the deep, talented group of individuals who populate our global system. With the organization stabilized and sustainable growth clearly evident, I expect Muhtar to be outstanding as the leader of the committed team that developed and is now executing our manifesto--our 10-year strategic growth plan."
Isdell has been engaged in succession planning with management and the board of directors since his takeover in 2004. As head of the world's largest beverage company and recognized as the world's "best global brand" in 2007, according to Interbrand, Isdell knows that innovation is key for the 71,000-employee company, now more than 150 years old, to sustain its market leadership and brand eminence. In a global environment, that's crucial; Coca-Cola derives 72 percent of its revenue from overseas.
Kent left the company in 1999 to serve as president and CEO of the Efes Beverage Group, one of Europe's largest international beverage businesses, which experienced triple-digit revenue growth and a 250 percent increase in market capitalization under his leadership, and managing partner of a public Coca-Cola bottling company, Coca-Cola Icecek, with operations in Turkey and neighboring countries. He returned to Coca-Cola in May 2005 as president of the North Asia, Eurasia and Middle East Group.
Kent holds a bachelor's degree in economics from Hull University, England, and a master's in administrative sciences from London City University.
Learn more about Coca-Cola's leadership and diversity-management best practices in its Top 50 profile on DiversityInc.com. Download Coke's 2006 task-force report to learn more about its diversity-related accomplishments.
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