Summary
This 8-K filing from The Coca-Cola Company (KO) on December 10, 2020, details significant updates to its executive compensation plans. Specifically, the Talent and Compensation Committee of the Board of Directors has adopted amendments and restatements to the Performance Incentive Plan and the 2014 Equity Plan, effective January 1, 2021. These changes are largely administrative and technical in nature. Key adjustments include the removal of provisions related to Section 162(m) of the Internal Revenue Code, impacted by the Tax Cuts and Jobs Act of 2017, and updates to metrics and definitions for improved flexibility and administrative efficiency. Notably, a retirement rule requiring prorated award payments for certain participants upon termination after age 55 with 10 years of service has also been removed from the Performance Incentive Plan. These amendments, approved by the Compensation Committee, do not require shareholder approval.
Key Highlights
- 1Coca-Cola amended and restated its Performance Incentive Plan and 2014 Equity Plan, effective January 1, 2021.
- 2The amendments are primarily administrative and technical.
- 3Provisions related to Section 162(m) of the Internal Revenue Code (due to the Tax Cuts and Jobs Act of 2017) have been removed.
- 4Plan metrics and defined terms have been updated for flexibility and administrative ease.
- 5A retirement rule requiring prorated incentive awards for participants aged 55+ with 10+ years of service has been removed from the Performance Incentive Plan.
- 6The Compensation Committee approved these changes, and no shareholder approval is required.
- 7The full text of the amended plans are attached as exhibits to the filing.