Form 4: Colgate-Palmolive Director Lorrie M Norrington Receives Stock Grant and Option Award

Director Lorrie M Norrington received an annual stock grant and stock option grant from Colgate-Palmolive on May 13, 2024.

Summary

• On May 13, 2024, Lorrie M Norrington, a director of Colgate-Palmolive, received 1,905 shares of common stock as an annual director stock grant.
• These shares were credited to a stock unit account under the company's incentive compensation plan.
• Norrington also received a stock option grant for 2,201 shares of common stock with an exercise price of $94.46.
• The options become exercisable in equal annual installments over three years, starting May 13, 2025, and expire on May 13, 2032.
• Following these transactions, Norrington directly owns 34,274 shares of Colgate-Palmolive common stock and options for 2,201 shares.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation event, which is generally viewed neutrally to positively as it aligns director interests with shareholders.

Positives

• The stock and option grants align the director's interests with those of the shareholders.
• The vesting schedule of the options encourages long-term commitment from the director.

Industry Context

Stock grants and options are common forms of executive compensation in publicly traded companies like Colgate-Palmolive to incentivize performance and align management's interests with shareholders.

Comparison to Industry Standards

• Colgate-Palmolive's executive compensation practices, including stock and option grants, are generally in line with those of its peers in the consumer staples industry, such as Procter & Gamble (PG) and Unilever (UL).
• These companies often use a mix of salary, bonus, stock options, and restricted stock units to compensate their executives and directors.
• The specific amounts and terms of these grants can vary based on individual performance, company performance, and industry benchmarks.

Stakeholder Impact

• The stock and option grants could have a minor positive impact on shareholder sentiment as they align the director's interests with those of the shareholders.

Key Dates