Shane Grant
COLGATE PALMOLIVEAbout Shane Grant
Shane Grant, age 50, was appointed Chief Operating Officer, Americas at Colgate-Palmolive effective June 16, 2025, joining from Danone where he served as Group Deputy CEO, CEO Americas and EVP Dairy, Plant-Based and Global Sales; he previously spent nearly 20 years at The Coca‑Cola Company in senior commercial and general management roles . He holds Business and Arts degrees from the University of Auckland . Colgate ties executive compensation to performance with core measures including Adjusted EPS, Free Cash Flow Productivity, organic sales growth, relative adjusted net income growth, relative organic sales growth, and relative TSR; in 2024, company annual incentives paid at 174% of target based on Base Business EPS of $3.60, 7.4% organic sales growth, and strategic goals payout of 150% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Danone | Group Deputy CEO, CEO Americas and EVP Dairy, Plant‑Based and Global Sales | 2023–2025 | Led Americas portfolio and global dairy/plant-based and sales; recognized industry leader per CL announcement . |
| Danone North America | EVP & CEO; interim co‑CEO (Danone) | 2020–2023 | Ran largest NA region; interim co‑CEO in 2021 . |
| The Coca‑Cola Company | Various leadership roles; President, Still Beverages NA (most recent) | ~2000–2020 | Category leadership, commercial and GM roles across NA/global . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| lululemon athletica inc. | Director; Audit Committee member | 2023–present | Joined Nov 1, 2023; independent director . |
| FMI – The Food Industry Association; Consumer Brands Association; AHA CEO Roundtable; World 50 | Board/member (various) | Ongoing | Listed affiliations on lululemon governance page . |
Fixed Compensation
| Component | Terms | Notes |
|---|---|---|
| Base Salary | $1,100,000 (effective June 16, 2025) | Approved by CL P&O Committee . |
| Sign‑on Bonus | $1,000,000, payable in two equal installments: at commencement and on June 16, 2026 | Make‑whole for foregone Danone benefits . |
| Transition Allowance | $1,500,000, payable in two equal installments: at commencement and on June 16, 2026 | Make‑whole support . |
| Tax Assistance | Income tax return prep assistance for tax years 2025 and 2026 | From CL’s global mobility tax partner . |
| Employment Agreement | No executive officer employment agreements at CL | Company policy: no guaranteed base/bonuses/equity levels . |
Performance Compensation
| Incentive | Metric/Structure | Target/Value | Vesting/Timing | Notes |
|---|---|---|---|---|
| 2025 Annual Cash Bonus | Based on performance measures applicable to other CL executives (80% financial; 20% strategic measure framework per 2024 program) | Target: 115% of base salary | Paid after FY performance | Target % approved with hire; program uses organic sales growth and EPS plus strategic priorities; in 2024 the strategic measure paid 150% leading to 174% overall payout (context) . |
| 2025 Annual LTI | Stock options + time‑vested RSUs | Options valued at $450,000; RSUs valued at $300,000 | Grant expected September 2025 | Values per hire 8‑K . |
| Replacement RSUs | Time‑vested RSUs | 90,000 RSUs | 45,000 on 6/16/2026; 22,500 on 6/16/2027; 22,500 on 6/16/2028 | Replacement for foregone awards; creates staged vesting cadence . |
| 2026 PBRSUs (target) | Colgate Growth Performance Plan | $1,600,000 target value | Earned over 2026–2028 based on performance; vests after cycle | Program metrics and weights below . |
| 2026 Annual LTI | Stock options + time‑vested RSUs | Options valued at $1,600,000; RSUs valued at $640,000 | Standard vesting schedules | Approved forward-looking package . |
Long‑Term Performance Plan Metrics (applies to PBRSUs)
| Performance Measure | Weight | Notes |
|---|---|---|
| Average organic sales growth vs Comparison Group (3‑yr) | 50% | Relative to peers . |
| Average Base Business Net Income growth vs Comparison Group (3‑yr) | 30% | Adjusted for specified items; relative performance . |
| Average Free Cash Flow Productivity (3‑yr) | 20% | Absolute FCF productivity metric . |
| TSR Modifier | ±25% of earned shares | Relative TSR vs peers over cycle . |
Annual Incentive Program Design (context from 2024 program)
| Component | Weight | 2024 Outcome (context) |
|---|---|---|
| Financial: Organic Sales Growth and Base Business EPS | 80% | Base Business EPS $3.60; organic sales growth 7.4% . |
| Strategic Measure (innovation, consumer experience, inclusion, sustainability) | 20% | Paid at 150% of target . |
| Resulting Bonus Payout (Named Officers) | — | 174% of award opportunity . |
Replacement RSU Vesting Schedule (Shane Grant)
| Vesting Date | Shares |
|---|---|
| June 16, 2026 | 45,000 |
| June 16, 2027 | 22,500 |
| June 16, 2028 | 22,500 |
Equity Ownership & Alignment
- Stock ownership guidelines: CEO 8x salary; other Named Officers 4x salary; executives must own stock equal in value to between two and eight times salary depending on position, with five years to reach compliance; until compliant, officers must retain 100% of net after‑tax shares from vesting .
- Anti‑hedging and anti‑pledging: Directors and officers are prohibited from hedging and from pledging Colgate stock; policy referenced in proxy and insider trading policy; in 2024 all Named Officers complied with anti‑hedging/anti‑pledging .
- Clawbacks: Mandatory recoupment for restatements per NYSE rule and broader discretionary clawback for misconduct/code violations applies to cash and equity incentives .
- Beneficial ownership/Section 16: Form 3 filed June 16, 2025 upon joining as COO, establishing initial beneficial ownership record .
Implications for selling pressure:
- The 90,000 replacement RSUs vest in three tranches in mid‑June 2026–2028, creating predictable liquidity windows; however, retention requirements (hold 100% of net shares until guideline met) and anti‑pledging/hedging reduce near‑term selling flexibility .
Employment Terms
| Topic | Terms |
|---|---|
| Severance Plan (Change‑in‑Control) | Double‑trigger; if terminated without cause or resigns for adverse change within 2 years post‑CIC, lump sum equal to 18–24 months of (base salary + average of last three annual bonuses) plus company contributions to savings plans; continuation of medical/dental/life insurance during severance period; pro‑rated bonus paid within 30 days of CIC; 4999 excise cutback/best‑net alternative . |
| Equity on CIC | If awards assumed by acquirer, unvested options become exercisable and RSUs/PBRSUs become earned/non‑forfeitable only upon Qualified Termination (double‑trigger); performance awards deemed earned at greater of target or to‑date performance . |
| Involuntary Termination (without cause, non‑CIC) | Lump sum equal to 12–24 months of base salary; continuation of medical/dental (and life insurance for specified cases) for 12–18 months; retirement‑eligible executives receive “retirement treatment” on certain equity . |
| Non‑compete / Non‑solicit | Participation in Severance Plan requires agreement not to compete for one year post‑termination; equity awards include non‑compete, non‑solicitation and non‑interference restrictions (non‑compliance may forfeit awards) . |
| No Gross‑ups | No tax gross‑ups on perquisites or severance . |
Performance & Track Record
- Industry background: Led Danone’s Americas and global dairy/plant-based portfolios; prior ~20 years at Coca‑Cola culminating as President for Still Beverages NA—experience aligns with CL’s consumer brands and category leadership focus .
- CL pay‑for‑performance framework: CAP/compensation tied to TSR, net income, organic sales growth, and peer comparisons; CL targets competitive median pay with above‑median payouts for superior results; 2024 say‑on‑pay support: 86.7% .
Expertise & Qualifications
- Education: Business and Arts degrees, University of Auckland .
- Sector expertise: Global FMCG leadership across beverages and food, multi‑region P&L and commercial roles—relevant to CL’s growth and margin priorities .
- External board service: Independent director at lululemon (Audit Committee), providing cross‑industry consumer insights .
Compensation Structure Analysis
- Mix and risk: 2025 package includes significant equity (replacement RSUs plus annual option/RSU grants) and a 115% target bonus, with 2026 PBRSUs tied to multi‑year relative growth and FCF productivity—aligning pay with shareholder outcomes and balancing retention via time‑vested RSUs .
- Alignment safeguards: Strong ownership guidelines with five‑year compliance window and required post‑vest holding until compliant; explicit prohibitions on hedging/pledging; robust clawbacks .
- No employment agreement: Consistent with CL practice (no guaranteed pay), but covered by company severance and double‑trigger CIC protection .
Equity Ownership & Alignment (Summary Table)
| Item | Detail |
|---|---|
| Ownership Guidelines | CEO 8x salary; other Named Officers 4x salary; executive officers required between 2x–8x by position; five years to comply; 100% of net vested shares retained until compliant . |
| Hedging/Pledging | Prohibited for directors and officers . |
| Clawbacks | Mandatory for restatements; discretionary for misconduct/code violations; covers cash and equity incentives . |
| Form 3 (Initial Ownership) | Filed June 16, 2025 upon joining CL . |
Employment Terms (Key Numbers)
| Scenario | Cash/Benefits | Equity Treatment |
|---|---|---|
| CIC + Qualified Termination | 18–24 months of (base + avg last 3 bonuses) + plan contributions; medical/dental/life continuation; pro‑rated bonus within 30 days of CIC; best‑net 4999 cutback | Options exercisable; RSUs/PBRSUs become earned and non‑forfeitable; performance awards at ≥ target or actual to‑date . |
| Involuntary (no cause, non‑CIC) | 12–24 months salary; medical/dental continuity 12–18 months | Retirement treatment for equity if retirement‑eligible; otherwise as per award terms . |
Investment Implications
- Incentive alignment: High at‑risk mix (annual bonus + multi‑year PBRSUs with relative growth/FCF metrics) and meaningful time‑vested RSUs should support retention and focus on organic growth, EPS quality, and cash conversion, consistent with CL’s 2024 program outcomes .
- Overhang/selling pressure: The 90k replacement RSUs vesting in mid‑June 2026–2028 create potential supply on those dates, but retention/ownership rules and anti‑pledging policies reduce near‑term monetization risk .
- Downside protection/exit economics: Double‑trigger CIC provisions and structured severance mitigate retention risk through change, without gross‑ups; non‑compete and clawbacks protect shareholders .
- Execution risk: Transitioning a seasoned consumer operator from beverages/food into CL’s oral/home/personal care franchises presents integration and category learning curves, but his background in innovation and commercial execution is strategically relevant to CL’s growth priorities and performance frameworks .