Form 4: Coca-Cola Director Helene D. Gayle Reports Acquisition of Phantom Share Units

Director Helene D. Gayle reported the acquisition of phantom share units in Coca-Cola, reflecting compensation and accrued dividends.

Summary

• Helene D. Gayle, a director of The Coca-Cola Company, filed a Form 4 disclosing changes in her beneficial ownership.
• On April 1, 2024, she acquired 3,280.3018 phantom share units as part of her 2024 director compensation under The Coca-Cola Company Directors' Plan.
• These phantom share units are economically equivalent to shares of Coca-Cola common stock.
• The acquisition also includes phantom share units accrued through April 1, 2024, as a result of credited phantom dividends.
• As of April 1, 2024, Gayle beneficially owns 61,143.8912 phantom share units.
• These units will be settled in cash after she leaves the Board, specifically the later of January 15 of the year following her departure or six months after her departure date.

Sentiment

Score: 7

Explanation: The document reflects standard director compensation practices and regulatory compliance, indicating a neutral to slightly positive sentiment.

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.
• Accrued phantom dividends contribute to the overall value of the director's compensation.

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

Reporting of beneficial ownership changes by company insiders is a standard practice governed by SEC regulations, ensuring transparency in the market.

Comparison to Industry Standards

• Director compensation packages often include stock options, restricted stock units, or phantom stock to align director interests with shareholder value.
• The Coca-Cola Company Directors' Plan is similar to deferred compensation plans offered by other large corporations.
• The reporting requirements under Section 16(a) of the Securities Exchange Act are consistent across all publicly traded companies.

Stakeholder Impact

• Shareholders are informed about changes in beneficial ownership by company insiders.
• The compensation structure for directors is transparently disclosed.

Key Dates