Form 4: Coca-Cola Executive Beatriz R. Perez Reports Stock Option Grant and 401(k) Activity

Executive Vice President Beatriz R. Perez reports acquisition of stock options and shares through The Coca-Cola Company's 401(k) plan.

Summary

• Beatriz R. Perez, an Executive Vice President at The Coca-Cola Company, filed a Form 4 with the SEC.
• The filing reports changes in her beneficial ownership of Coca-Cola stock.
• On February 27, 2025, Perez was granted 68,383 employee stock options with an exercise price of $70.9775.
• These options vest in four equal installments annually starting February 27, 2026.
• The options expire on February 27, 2035.
• The filing also indicates Perez holds 187,716 shares of Coca-Cola common stock directly.
• Additionally, she indirectly owns 23,340 shares through The Coca-Cola Company 401(k) Plan and 11,258 hypothetical shares through the Supplemental 401(k) Plan as of February 27, 2025.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing detailing executive compensation. It doesn't contain information that would significantly sway investor sentiment positively or negatively.

Positives

• The grant of stock options aligns the executive's interests with those of the shareholders, incentivizing performance and value creation.
• Continued participation in the 401(k) plan demonstrates confidence in the company's long-term prospects.

Industry Context

Executive compensation through stock options is a common practice in publicly traded companies like Coca-Cola to align management's interests with shareholder value. The 401(k) plan is a standard retirement savings vehicle offered by many large corporations.

Comparison to Industry Standards

• Coca-Cola's executive compensation practices, including stock options and 401(k) plans, are generally in line with those of other large, publicly traded consumer goods companies such as PepsiCo (PEP) and Nestle.
• Stock option grants are a common component of executive pay packages, designed to incentivize long-term performance and align executive interests with shareholder value.
• The vesting schedule of the options (25% per year over four years) is also a typical arrangement.
• The exercise price of $70.9775 would need to be compared to the market price of KO stock on the grant date to assess the 'in-the-money' value of the options.

Stakeholder Impact

• The stock option grant could potentially benefit shareholders if the executive's performance leads to an increase in the company's stock price.
• The 401(k) plan benefits employees by providing a retirement savings vehicle.

Key Dates