Form 4: Coca-Cola Director Christopher C. Davis Reports Transaction

Director Christopher C. Davis reports the disposition of 20,000 common stock shares and the acquisition of phantom share units under The Coca-Cola Company Directors' Plan.

Summary

• On April 1, 2024, Christopher C. Davis, a director of Coca-Cola, reported a transaction.
• Davis disposed of 20,000 shares of common stock.
• He also acquired 4,756.4376 phantom share units under The Coca-Cola Company Directors' Plan.
• These phantom share units are economically equivalent to shares of common stock and were credited as part of his 2024 compensation, potentially including deferred compensation.
• The phantom share units will be settled in cash after he leaves the Board, specifically on the later of January 15 of the year following his departure or six months after his departure date.
• As of April 1, 2024, Davis beneficially owns 39,138.584 phantom share units, including those accrued through credited phantom dividends.

Sentiment

Score: 5

Explanation: The document is a neutral regulatory filing detailing a routine transaction. There is no inherent 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

This filing is a routine disclosure of insider transactions, which are common for directors and officers of publicly traded companies. It provides transparency into their investment activities in the company's stock.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units (RSUs) or phantom stock.
• The Coca-Cola Company Directors' Plan is similar to those offered by other large, publicly traded companies such as PepsiCo (PEP) and Nestle (NSRGY), which also use equity-based compensation to align director interests with shareholder value.
• The timing of the cash settlement of phantom share units after the director leaves the board is a common practice to ensure continued commitment and alignment with long-term company performance.

Stakeholder Impact

• The transaction provides transparency to shareholders regarding director compensation and stock ownership.
• It assures stakeholders that directors' interests are aligned with those of the shareholders through equity-based compensation.

Key Dates