An agreement with the state pension fund in New York will require the Coca-Cola Company to consider the wages of all of its employees when setting executive salaries.
The state fund is a shareholder in Coca-Cola with a portfolio of more than $513 million invested.
State Comptroller Thomas DiNapoli manages the fund. He says New York had submitted a shareholder proposal to help close the pay gap between CEOs and their workers.
CEO salaries have outpaced workers by 1,400% in recent decades.
DiNapoli says those disparities can damage company morale, productivity and company reputation.
Market watchers say the state has been aggressive in using its role as a shareholder to change company policies. For instance, the state wants to divest from businesses that contribute to climate change.