Robert G. Chambless
Coca-Cola ConsolidatedAbout Robert G. Chambless
Robert G. Chambless is Executive Vice President, Franchise Beverage Operations at Coca‑Cola Consolidated (COKE). He joined the Company in 1986 and has held senior operating roles overseeing sales, marketing and distribution; he was elevated to EVP Franchise Strategy & Operations in 2016 and is listed as EVP, Franchise Beverage Operations in recent filings . He is age 59 per the FY2024 Form 10‑K roster of executive officers . During 2021–2024, COKE more than doubled income from operations ($439.2m → $920.4m), raised its quarterly dividend from $0.25 to $2.50 and paid two special dividends (~$180m total), invested ~$950m in capex, and saw its share price more than double over three fiscal years—performance that drove above‑target incentive outcomes for executives including Chambless .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Coca‑Cola Consolidated | EVP, Franchise Strategy & Operations | Appointed effective Apr 1, 2016 | Oversaw all sales, marketing and distribution operations |
| Coca‑Cola Consolidated | EVP, Franchise Beverage Operations | Listed 2021–2025 | Senior operating executive for franchise beverage operations |
| Coca‑Cola Consolidated | SVP, Sales, Field Operations & Marketing | Pre‑2016 | Led field sales/marketing before promotion to EVP |
| Coca‑Cola Consolidated | Joined the Company | 1986 | Long‑tenured operator within the Coca‑Cola system |
External Roles
- None disclosed in Company filings reviewed.
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $720,978 | $742,608 |
| Executive Allowance ($) | $25,000 | $25,000 |
| Tax Gross‑Ups ($) | $21,793 | $25,084 |
| Life Insurance ($) | $13,288 | $14,613 |
| Company Contributions to Defined Contribution Plans ($) | $147,921 | $149,362 |
| All Other Compensation ($ total) | $218,693 | $225,234 |
Performance Compensation
Annual Bonus Plan (ABP) structure and outcomes
- Target bonus for Chambless: 75% of base salary (unchanged 2023→2024) .
- Performance metrics and weights: EBIT 40%, Free Cash Flow 40%, Revenue 20% .
2024 ABP performance grid (Company-level):
| Performance Measure | Weight | Threshold | Target | Maximum | Adjusted Achievement | Payout % | Weighted Payout % |
|---|---|---|---|---|---|---|---|
| EBIT | 40% | $797.0m | $877.0m | $917.0m | $921.6m | 150.0% | 60.0% |
| Free Cash Flow | 40% | $360.0m | $400.0m | $440.0m | $440.1m | 150.0% | 60.0% |
| Revenue | 20% | $6.339b | $6.519b | $6.579b | $6.510b | 97.6% | 19.5% |
| Overall Goal Achievement Factor | 139.5% |
Chambless ABP payouts:
| Year | Base Salary ($) | Target Bonus % | Overall Goal Achievement Factor | Individual Performance Factor | Bonus Earned ($) |
|---|---|---|---|---|---|
| 2023 | $720,978 | 75% | 137.5% | 1.46 | $1,085,768 |
| 2024 | $742,608 | 75% | 139.5% | 1.43 | $1,111,043 |
- Discretionary Achievement Recognition Award (cash): $350,000 in each of 2023 and 2024 to recognize multi‑year value creation .
Long‑Term Performance Plan (LTP)
- Structure: 3‑year cash program for executives (CEO excluded), paying in cash; 2024–2026 payout scheduled in early FY2027 .
- Metrics and weights: 3‑yr aggregate EBIT 50%, 3‑yr aggregate Free Cash Flow 30%, 3‑yr average EBIT Margin 20% .
- Chambless 2024–2026 LTP target: 75% of base salary = $556,956 .
Recent LTP payouts:
| Performance Period | Chambless Target ($) | Long‑Term Performance Factor | Payout ($) |
|---|---|---|---|
| 2021–2023 | $504,792 | 150.0% | $757,188 |
| 2022–2024 | $519,936 | 150.0% | $779,904 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | No shares reported; less than 1% of class as of Mar 17, 2025 |
| Options/RSUs/PSUs | Not used for non‑CEO executives; LTP pays in cash due to limited float/liquidity |
| Hedging/shorting | Prohibited for all directors, officers and employees |
| Pledging | Prohibited for directors/officers as collateral in margin accounts |
| Stock ownership guidelines | Not disclosed for executives in reviewed materials |
Deferred compensation and retirement programs:
- Supplemental Savings Incentive Plan (SSIP) (nonqualified; deferrals + Company match up to 50% of first 6%; Company contributions vest 20%/yr over 5 years; fixed accounts on pre‑2006 deferrals can earn up to 13%) .
- Chambless SSIP (2024): Exec contrib $88,514; Company contrib $22,128; Aggregate earnings $1,258,425 (above‑market portion $27,305); Ending balance $5,527,231 .
- Officer Retention Plan (ORP) (supplemental DB plan; no new awards since 2014). Chambless: Present value $2,780,034; 19 credited years (as of 12/31/2024) .
- Long‑Term Retention Plan (LTRP) (supplemental DC plan; 50% vested at age 51, then ratable to age 60; fully vests on death/disability/change in control). Chambless 2023: Company contrib $109,984; balance $1,275,755 .
Employment Terms
- No individual employment/severance agreements; benefits arise under Company plans (ABP, LTP, SSIP, ORP, LTRP) .
- Planned transition/retirement: Will move to EVP, Senior Advisor to the Chairman & CEO effective Jan 1, 2026, with intention to retire in 2027 (not due to any disagreement) .
Potential payments upon termination/change in control (assumes event on 12/31/2024):
| Scenario | Total ($) | Key components ($) |
|---|---|---|
| Voluntary resignation / Termination without cause | 11,439,439 | ORP 2,368,929; LTRP 1,148,179; SSIP 5,527,231; ABP 1,111,043; LTP 1,284,057 |
| Termination for cause | 5,527,231 | SSIP only |
| Death | 12,347,573 | ORP 2,632,143; LTRP 1,793,099; SSIP 5,527,231; ABP 1,111,043; LTP 1,284,057 |
| Disability | 12,347,573 | Same as death |
| Retirement (plan‑defined) | 9,070,510 | ORP — (not retired under ORP); LTRP 1,148,179; SSIP 5,527,231; ABP 1,111,043; LTP 1,284,057 |
| Change in control | 12,715,430 | ORP 3,000,000; LTRP 1,793,099; SSIP 5,527,231; ABP 1,111,043; LTP 1,284,057 |
Other policies/perquisites:
- Executive allowance ($25,000 for Chambless in 2024); Company pays long‑term disability and life premiums; certain benefits carry income/employment tax gross‑ups (Chambless $25,084 in 2024) .
Compensation Structure Analysis
- Mix: Heavy emphasis on at‑risk cash (ABP + 3‑yr LTP), minimal use of stock for non‑CEO (reduces market‑price volatility in executive pay but limits equity alignment) .
- Performance rigor: ABP and LTP center on EBIT and Free Cash Flow (80% of ABP; 80% of LTP via EBIT + EBIT margin), promoting profitability and cash discipline; 2024 outcomes hit max on EBIT/FCF while slightly under Revenue target .
- Discretion: One‑time Achievement Recognition cash awards were granted again (2024), signaling Committee discretion layered on formulaic plans .
- Market positioning: Committee aims around 50th–75th percentile vs Korn Ferry peer set (food/beverage comparables) .
- Shareholder‑unfriendly features: Ongoing tax gross‑ups on certain perquisites; pre‑2006 SSIP fixed accounts can earn above‑market returns (Chambless above‑market earnings recognized) .
Investment Implications
- Alignment and selling pressure: With no disclosed share ownership and no ongoing equity awards for non‑CEO, near‑term insider selling pressure tied to equity vesting is low; cash‑based LTP payouts (2022–2024 paid in 2025) supply liquidity without open‑market sales .
- Retention risk and succession: Announced transition to Senior Advisor in 2026 and planned 2027 retirement creates medium‑term succession/continuity risk in franchise operations; retention levers include ORP/LTRP balances and CIC protections .
- Pay‑for‑performance: 2024 ABP paid at 139.5% on strong EBIT/FCF, consistent with the Company’s multi‑year operating gains, dividend growth and share appreciation; discretionary retention/recognition bonuses add to total cash .
- Governance mitigants: Prohibitions on hedging/shorting and on pledging Company stock for margin accounts reduce alignment risks often associated with leveraged personal positions .