Form 4: Coca-Cola Executive Nancy Quan Reports Stock Option Grant and 401(k) Activity

Executive Vice President Nancy Quan reports stock option grant and 401(k) activity related to Coca-Cola shares.

Summary

• Nancy Quan, an Executive Vice President at The Coca-Cola Company, filed a Form 4 detailing changes in her beneficial ownership of company stock.
• On February 28, 2024, Quan was granted options to purchase 96,075 shares of Coca-Cola common stock at an exercise price of $60.275 per share, which expire on February 28, 2034.
• These options vest in four equal installments annually starting February 28, 2025.
• As of February 28, 2024, Quan directly owns 243,330 shares of Coca-Cola common stock.
• She also indirectly owns 5,031 shares through The Coca-Cola Company 401(k) Plan and 8,950 hypothetical shares through the Supplemental 401(k) Plan.

Sentiment

Score: 6

Explanation: The document is neutral in tone, simply reporting transactions. The stock option grant is a positive incentive for the executive, but it's a standard practice.

Positives

• The granting of stock options to executives aligns their interests with those of shareholders, incentivizing them to improve company performance.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies like Coca-Cola. It provides transparency into the alignment of executive interests with shareholder value.

Comparison to Industry Standards

• Stock option grants are a common component of executive compensation packages in large, publicly traded companies.
• Companies like PepsiCo (PEP) and Keurig Dr Pepper (KDP) also utilize stock options as part of their executive compensation plans.
• The vesting schedule of the options (25% per year over four years) is a fairly standard practice.

Stakeholder Impact

• The stock option grant could potentially incentivize the executive to make decisions that increase shareholder value.

Key Dates