Form 4: Coca-Cola Director Caroline J. Tsay Reports Acquisition of Phantom Share Units

Director Caroline J. Tsay reports acquisition of phantom share units under The Coca-Cola Company Directors' Plan.

Summary

• Caroline J. Tsay, a director of The Coca-Cola Company, filed a Form 4 disclosing changes in beneficial ownership.
• The report indicates the acquisition of 4,053.1097 phantom share units on April 1, 2025, under The Coca-Cola Company Directors' Plan.
• These units are economically equivalent to shares of Common Stock and were credited as part of the director's compensation.
• The phantom share units will be settled in cash after Ms. Tsay leaves the Board, specifically the later of January 15 of the year following her departure or six months after her departure date.
• Ms. Tsay's total holdings include 34,569.3532 phantom share units, inclusive of those accrued through April 1, 2025, due to credited phantom dividends.
• Ms. Tsay also indirectly owns 1,104 shares of Common Stock through a living trust.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing indicating standard compensation practices. It doesn't contain any alarming or negative information, but it's not particularly positive either. It's a neutral disclosure.

Positives

• The acquisition of phantom share units aligns the director's interests with the company's performance.
• The Directors' Plan provides a mechanism for deferred compensation, potentially offering tax advantages.

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 standard practice for corporate insiders to report changes in their ownership of company securities, ensuring transparency and compliance with SEC regulations.

Comparison to Industry Standards

• Director compensation packages often include equity-based awards like phantom shares to align executive incentives with shareholder value, similar to practices at PepsiCo and other large consumer goods companies.
• The Coca-Cola Company Directors' Plan is similar to deferred compensation plans offered by other Fortune 500 companies, such as Procter & Gamble and Johnson & Johnson, which aim to attract and retain qualified board members.

Stakeholder Impact

• The acquisition of phantom share units by a director aligns their interests with shareholders, potentially encouraging decisions that increase shareholder value.

Key Dates

Keywords

Form 4, Coca-Cola, Director, Phantom Share Units, Beneficial Ownership, Compensation, Directors' Plan