Coca-Cola and Pepsi Pension

1013 WordsJun 28, 20125 Pages
Running head: Coca-Cola and Pepsi Pensions Laila Nayani Professor: William Blix ACC: 305 Abstract In this paper I will cover the comparative analysis case study of the pension plans offered by the Coca-Cola Company and PepsiCo, Inc. I will compare the pension plans of both of these entities and indicate the types of plans they offer as well…show more content…
Coca Cola’s expected rate of return used to compute pension information for December 31, 2009 is7.75%. PepsiCo’s expected rate of return used to compute pension information for December 31, 2007 is 7.8%.Pension benefits are determined by considering the employees compensation level at retirement. Therefore, the rate of compensation or expected increase percentage is necessary to determine future compensation levels. Coca Cola’s rate of compensation or “rate of increase in compensation levels” percentage used to compute pension information for December 21, 2009 is 24.25%. PepsiCo’s rate of compensation or “rate of increase in compensation levels” percentage used to compute pension information for December 21, 2007 is 4.7%. Coca Cola is a large company that has been around since 1886. They are primarily marketing and selling one product; beverages. They have a 63.9% gross profit margin for 2009 and show reasonably good ratios indicating stability. For the 46th consecutive year dividend shave risen. About 74% of their net operating revenue comes from operations outside of the U.S .PepsiCo, Inc. is also a large company that has been around since 1898. They are also a leader in the beverage market but have diversified into another area; snacks. Well known snack such as Lay’s, Doritos, Frito-Lay, Rold Gold, Cracker Jack, Quaker Oatmeal, Aunt Jemima, and Rice-A-Roni just to mention a few leading brand names. The
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