Form 4: Herbert A. Allen III Reports Changes in Beneficial Ownership of Coca-Cola Co. Shares

Director Herbert A. Allen III reports acquisition of phantom share units and adjustments to direct and indirect ownership of Coca-Cola Co. stock.

Summary

• Herbert A. Allen III, a director of Coca-Cola Co., filed a Form 4 detailing changes in his beneficial ownership.
• On April 1, 2025, Allen acquired 4,332.6345 phantom share units under The Coca-Cola Company Directors' Plan, economically equivalent to shares of common stock.
• These units were credited as part of his 2025 compensation and will be settled in cash after he leaves the Board.
• Allen directly owns 162,610 shares of Coca-Cola common stock.
• He also has indirect ownership of 99,054 shares through Allen & Company LLC, where he serves as President.
• His total holdings of phantom share units amount to 17,958.3057, inclusive of accrued phantom dividends.

Sentiment

Score: 7

Explanation: The document reflects standard insider trading activity and compensation practices, indicating stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The acquisition of phantom share units reflects ongoing compensation and alignment with the company's performance.
• Continued direct and indirect ownership demonstrates a sustained investment in Coca-Cola's success.

Future Outlook

The phantom share units will be settled in cash the later of January 15 of the year following the year in which the reporting person leaves the Board, or six months following the date on which the reporting person leaves the Board.

Management Comments

• The reporting person disclaims beneficial ownership of shares owned by Allen & Company LLC except to the extent of his pecuniary interest therein.

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 stock options, restricted stock units, or phantom shares to align executive interests with shareholder value, similar to the Coca-Cola Directors' Plan.
• Companies like PepsiCo and Nestle also utilize equity-based compensation for their board members.
• The reporting requirements under Section 16(a) of the Securities Exchange Act are consistent across all publicly traded companies.

Stakeholder Impact

• The disclosure provides transparency to shareholders regarding the compensation and ownership stake of a key director.
• Employees may view the equity-based compensation as a positive sign of alignment between management and company performance.

Key Dates

Keywords

beneficial ownership, Form 4, Coca-Cola Co, Herbert A. Allen III, phantom share units, direct ownership, indirect ownership, directors' plan, compensation