Form 4: Keurig Dr Pepper Senior VP & Controller Angela Stephens Converts Restricted Stock Units, Increases Direct Common Stock Holdings

Angela A. Stephens, Senior VP & Controller of Keurig Dr Pepper Inc., converted 2,950 restricted stock units into common stock and had 1,161 shares withheld for taxes on May 30, 2025, as part of a pre-scheduled vesting.

Summary

• Angela A. Stephens, Senior VP & Controller at Keurig Dr Pepper Inc. (KDP), reported a transaction on May 30, 2025.
• She acquired 2,950 shares of common stock through the conversion of Restricted Stock Units (RSUs) at a price of $0.
• Concurrently, 1,161 shares were disposed of at a price of $33.67 to cover applicable taxes upon the vesting of these RSUs.
• Following these transactions, Ms. Stephens directly beneficially owns 64,200 shares of common stock and 11,800 Restricted Stock Units.
• The RSUs were granted on May 30, 2024, and vest in five equal 20% installments annually, with the first 20% vesting on May 30, 2025, as reported.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. It represents a routine, expected executive compensation event (RSU vesting) which aligns management interests with shareholders. The tax withholding is a standard part of such transactions and not negative in itself.

Positives

• The vesting and conversion of Restricted Stock Units (RSUs) indicate a pre-scheduled compensation event for a key executive, aligning management's interests with shareholders.
• The executive's direct beneficial ownership of 64,200 common shares demonstrates a significant stake in the company.
• The transaction occurred as part of the Issuer's Omnibus Stock Incentive Plan of 2019, indicating a structured and approved compensation framework.

Negatives

• 1,161 shares were withheld for the payment of applicable taxes, representing a disposition of shares that could otherwise have increased the executive's direct holdings.

Future Outlook

The remaining 11,800 Restricted Stock Units held by Angela A. Stephens are scheduled to vest in four equal 20% installments annually on May 30, 2026, 2027, 2028, and 2029, indicating a continued long-term incentive alignment.

Industry Context

This is a routine insider transaction related to executive compensation, common across publicly traded companies. It reflects the standard practice of using equity-based incentives like Restricted Stock Units to align the interests of senior management with long-term shareholder value creation.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) with multi-year vesting schedules is a common practice in executive compensation across various industries, including the consumer goods and beverage sectors, aligning with best practices for long-term incentive plans.
• The one-for-one conversion of RSUs to common stock is standard.
• The withholding of shares for tax purposes upon vesting is a typical and efficient method for executives to manage tax obligations related to equity compensation, consistent with practices observed in companies like Coca-Cola (KO) or PepsiCo (PEP) for similar executive equity awards.

Related Party Transactions

• The transaction involves the conversion of Restricted Stock Units (RSUs) granted by Keurig Dr Pepper Inc. to its Senior VP & Controller, Angela A. Stephens, which is a standard form of compensation between a company and its executive.

Stakeholder Impact

• Shareholders: The transaction demonstrates continued alignment of executive incentives with shareholder interests through equity ownership. The withholding of shares for taxes is a routine event and does not indicate a negative outlook.
• Employees: This transaction is part of the company's established equity incentive plan, which can serve as a model for other employee equity programs.

Next Steps

• Future 20% installments of the remaining 11,800 Restricted Stock Units are scheduled to vest on May 30, 2026, May 30, 2027, May 30, 2028, and May 30, 2029.

Key Dates

Recommendation

Keywords

Keurig Dr Pepper, KDP, SEC Form 4, Insider Transaction, Restricted Stock Units, RSU, Stock Vesting, Executive Compensation, Angela Stephens, Common Stock, Tax Withholding