Form 4: Coca-Cola Director Alexis M. Herman Reports Acquisition of Phantom Share Units

Director Alexis M. Herman reported the acquisition of phantom share units in The Coca-Cola Company, as well as the disposal of common stock.

Summary

• On April 1, 2024, Alexis M. Herman, a director of The Coca-Cola Company, reported a transaction involving derivative securities.
• Herman acquired 3,280.3018 phantom share units under The Coca-Cola Company Directors' Plan effective January 1, 2020, for 2024 compensation.
• These phantom share units are economically equivalent to shares of Coca-Cola common stock.
• The price of the derivative security is $60.97.
• The phantom share units will be settled in cash the later of January 15 of the year following the year in which the reporting person leaves the Board, or six months following the date on which the reporting person leaves the Board.
• As of April 1, 2024, Herman beneficially owns 89,216.2924 derivative securities.
• Herman also disposed of 2,000 shares of common stock.

Sentiment

Score: 5

Explanation: This is a routine regulatory filing reflecting standard compensation practices. It doesn't indicate any significant positive or negative sentiment.

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

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. This filing indicates a director's ongoing investment in the company through phantom share units.

Comparison to Industry Standards

• Director compensation packages often include phantom share units or similar equity-based awards to align the interests of directors with those of shareholders.
• The Coca-Cola Company Directors' Plan is similar to those offered by other large, publicly traded companies such as PepsiCo (PEP) and Nestle (NESN), which also use equity-based compensation to incentivize board members.
• The specific terms of the Directors' Plan, such as the settlement date and the crediting of phantom dividends, are typical features of such plans.

Stakeholder Impact

• The acquisition of phantom share units aligns the director's interests with those of shareholders, as the value of the units is tied to the performance of the company's stock.

Key Dates