8-KLeadership ChangesExhibits & Filings

COCA COLA CO 8-K Report, Executive Changes (Feb 18, 2010)

Filed February 18, 2010For Securities:KO

Summary

This 8-K filing by The Coca-Cola Company, dated February 17, 2010, primarily details updates to the company's executive compensation structure, specifically concerning restricted stock and performance share units (PSUs) under its 1989 Restricted Stock Award Plan. The Compensation Committee of the Board of Directors adopted a new form of restricted stock agreement and amended the existing PSU award agreements. The key change involves the definition of "Retirement" for PSU awards, which was modified from age 55 with 10 years of service to age 60 with 10 years of service. This adjustment impacts the conditions under which executive officers can receive awards upon retirement. These changes are relevant to investors as they can influence executive retention, long-term incentive alignment, and potential dilution from equity awards.

Key Highlights

  • 1Adoption of a new form of restricted stock agreement for both time-based and performance-based awards under the 1989 Restricted Stock Award Plan.
  • 2Amendments made to the forms of restricted stock award agreements for Performance Share Units (PSUs).
  • 3The definition of "Retirement" for PSU awards has been revised to require age 60 with 10 years of service, up from age 55 with 10 years of service.
  • 4These equity award agreements are applicable to executive officers named in the company's 2010 Definitive Proxy Statement.
  • 5The filing includes exhibits detailing the specific forms of these equity award agreements.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce updates to The Coca-Cola Company's executive compensation plans, specifically concerning restricted stock and performance share units (PSUs) under its 1989 Restricted Stock Award Plan.

The definition of 'Retirement' for PSU awards was amended. Previously, retirement was defined as age 55 with 10 years of service. This has been changed to require executives to be age 60 with 10 years of service to be considered retired for the purpose of receiving these awards.

The executive officers of the company are eligible to receive awards under these new and amended equity award agreements. The change in the retirement definition could potentially impact the timing of when executives receive certain equity-based compensation.

More detailed information about the forms of the restricted stock agreements and the amendments to the PSU agreements can be found in the exhibits (Exhibits 10.1, 10.2, and 10.3) attached to this 8-K filing.