Form 4: Coca-Cola CEO James Quincey Reports Stock Option Grant and Beneficial Ownership Changes
SEC Form 4 Filing
James Quincey, Chairman and CEO of The Coca-Cola Company, reports the acquisition of stock options and changes in beneficial ownership of common stock as of February 28, 2024.
Summary
- James Quincey, the Chairman and CEO of The Coca-Cola Company, filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
- On February 28, 2024, Quincey was granted options to purchase 835,436 shares of Coca-Cola common stock at an exercise price of $60.275 per share, exercisable in four equal installments starting February 28, 2025.
- As of February 28, 2024, Quincey directly owns 442,546 shares of Coca-Cola common stock.
- He also indirectly owns 44,678 shares through his wife and 7,082 shares through The Coca-Cola Company 401(k) Plan.
- Additionally, Quincey indirectly owns 25,455 hypothetical shares through the Supplemental 401(k) Plan.
Sentiment
Score: 6
Explanation: The document is neutral in sentiment as it primarily reports factual information about stock option grants and ownership changes. It reflects standard corporate governance practices.
Positives
- The grant of stock options to the CEO aligns his interests with those of shareholders, incentivizing him to drive long-term value creation.
Future Outlook
The document does not contain specific forward-looking statements beyond the vesting schedule of the stock options.
Industry Context
This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies. It reflects standard practices for incentivizing and aligning executive interests with shareholder value.
Comparison to Industry Standards
- Stock option grants are a common component of executive compensation packages in large, publicly traded companies like Coca-Cola.
- The vesting schedule of the options (25% per year over four years) is a typical structure to encourage long-term commitment.
- Companies like PepsiCo, Nestle, and Unilever also utilize stock options and other equity-based compensation to incentivize their executives.
Stakeholder Impact
- The stock option grant could positively impact shareholders by incentivizing the CEO to improve company performance.
- Employees may view the grant as a positive sign of the company's commitment to its leadership.
Key Dates
| Date | Description |
|---|---|
| 02/28/2024 | Date of earliest transaction, grant of stock options, and shares credited to 401(k) plan. |
| 02/28/2025 | First vesting date for one-fourth of the granted stock options. |
| 02/27/2026 | Second vesting date for one-fourth of the granted stock options. |
| 02/26/2027 | Third vesting date for one-fourth of the granted stock options. |
| 02/29/2028 | Fourth vesting date for one-fourth of the granted stock options. |
| 02/29/2024 | Date of signature for the Form 4 filing. |
| 02/28/2034 | Expiration date of the stock options. |
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