Form 4: Bela Bajaria Reports Acquisition of Coca-Cola Phantom Share Units Following Board Election

Director Bela Bajaria reports acquiring phantom share units of Coca-Cola following her election to the Board of Directors.

Summary

• Bela Bajaria, a Director of The Coca-Cola Company, filed a Form 4 on October 19, 2024, reporting a transaction.
• On October 17, 2024, Bajaria acquired 1,312.1207 phantom share units under The Coca-Cola Company Directors' Plan.
• These units are economically equivalent to shares of Common Stock and were credited as part of her 2024 compensation, prorated due to her election to the Board on the same date.
• The price of each derivative security is $60.97.
• Bajaria also indirectly owns 2,100 shares of Coca-Cola common stock through a family trust.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a neutral to slightly positive sentiment as it aligns director interests with company performance.

Positives

• The acquisition of phantom share units aligns Bajaria's interests with the long-term performance of Coca-Cola.
• The Directors' Plan provides a mechanism for compensating directors with equity-based awards.

Future Outlook

The phantom share units will be settled in cash the later of (i) January 15 of the year following the year in which the reporting person leaves the Board, or (ii) six months following the date on which the reporting person leaves the Board.

Industry Context

Director compensation in the form of stock options and restricted stock units is a common practice among publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Companies like PepsiCo and Nestle also utilize equity-based compensation for their board members.
• The specific terms of the Directors' Plan, such as vesting schedules and settlement methods, are likely comparable to those offered by peer companies.

Stakeholder Impact

• The acquisition of phantom share units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates