John Murphy
COCA COLAAbout John Murphy
President and Chief Financial Officer of The Coca-Cola Company; served as Executive Vice President and CFO since 2019 and is currently President & CFO (signatory on major securities filings) . Company performance under his finance leadership delivered 2024 organic revenue growth of 12% and comparable currency-neutral operating income growth of 16%, with comparable EPS up 7% and a 5.2% dividend increase; pay-versus-performance selected organic revenue growth as the key measure and shows CAP aligned to results . The 2022–2024 PSU program paid at 190% based on above-maximum financial outcomes, indicating value creation against multi-year targets .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Coca-Cola Company | Executive Vice President & Chief Financial Officer | 2019–2024 | Principal financial officer; led capital markets and finance governance; signed S-3ASR registration statement |
| The Coca-Cola Company | President & Chief Financial Officer | 2024–present | Expanded remit across finance; signatory and PoA on 2024 10-K |
External Roles
| Organization | Role/Capacity | Years | Strategic Impact |
|---|---|---|---|
| Monster Beverage (via KO/affiliates) | KO representative signatory on Schedule 13D/A | 2025 | Oversight of KO’s investment disclosure in MNST |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 961,062 | 1,055,750 | 1,097,980 |
| Target Annual Incentive (% of Salary) | 150% | 150% | 150% |
| Actual Annual Incentive Paid ($) | 2,556,094 | 3,038,100 | 3,159,624 |
Performance Compensation
Annual Incentive – 2024 Business Performance Factor (BPF)
| Metric | Target | Actual | Payout | Weighting | Weighted Result |
|---|---|---|---|---|---|
| Net Operating Revenue Growth (organic, non-GAAP) | 7.5% | 12.0% | 200% | 45% | 90% |
| Operating Income Growth (comp. currency-neutral, adj. for structural) | 10.0% | 18.0% | 200% | 45% | 90% |
| Inclusion Components | Progress | All Achieved | 100% | 10% | 10% |
| Company BPF Total | 190% |
Notes: For Murphy, BPF used overall company weightings above; individual performance add-on was not awarded (0%) in 2024 .
Long-Term Incentives – 2024 Grants and Structure
| Component | Grant-Date Value ($) | Units Granted | Key Terms |
|---|---|---|---|
| PSUs (2024–2026) | 3,103,416 | 54,303 | Weighting: 30% net op revenue growth, 30% EPS growth, 30% free cash flow, 10% environmental sustainability; modifier ±25% for relative TSR vs S&P 500 Consumer Staples; payout 50–200% before TSR modifier |
| Stock Options (10-year term) | 2,791,195 | 271,517 | Vesting: 25% annually over 4 tranches (2025–2028); exercise price $60.28–$60.40 (avg high/low on grant date) |
Multi-year PSU outcomes: 2022–2024 PSU paid at 190% (financial measures above max; sustainability mixed; TSR modifier neutral) .
Equity Ownership & Alignment
Beneficial Ownership (as of March 3, 2025)
| Category | Shares / Units |
|---|---|
| Total Beneficial Ownership | 1,578,254 shares |
| Includes: Options exercisable (or becoming exercisable) by May 2, 2025 | 1,212,108 |
| Includes: Shares in trust, family member, restricted stock, 401(k) | 107,400 (trust), 2,407 (family), 200 (restricted), 921 (401(k)) |
| Supplemental 401(k) share units (cash-settled, not counted as shares outstanding) | 6,713 units |
Policy alignment:
- Hedging, short sales, and pledging of KO stock are prohibited for Directors and Section 16 officers; broader employees discouraged from hedging/shorting .
- Stock ownership guidelines: all NEOs in compliance; options do not count; PSUs count only after performance certification; retention policy requires executives not yet at guideline to retain 50% of net shares until objective met .
Outstanding and Vested Equity (select items)
| Item | Amount |
|---|---|
| PSUs earned (2022–2024 program) | 86,436 PSUs |
| Unvested PSU maximums shown (disclosed at max for presentation) | 114,090 (2023–2025), 108,606 (2024–2026) |
Insider Activity (2024)
| Activity | Shares | Value Realized ($) |
|---|---|---|
| Options exercised | 57,298 | 1,204,753 |
| Stock vested (PSUs release) | 147,848 | 8,765,908 |
Implication: Scheduled PSU releases and option vesting create periodic supply; hedging/pledging bans and retention requirements mitigate misalignment risk .
Employment Terms
Severance and Change-in-Control (CIC)
| Provision | Terms |
|---|---|
| Severance Plan (TCCC) | Involuntary termination due to reorg/role elimination: max 2 years of base pay (lump sum); no separate CIC severance in plan |
| Equity – CIC (double trigger) | If awards assumed: options/RSUs vest upon termination without cause within one year; PSUs vest upon termination without cause within two years, at target if CIC in first half of performance period or based on actual if in second half; pro-rata by time worked |
| Equity – if awards not assumed | Accelerated vesting at CIC; PSUs deemed earned (target or actual depending on period half) and paid pro-rata |
Clawback, Retention, and Trading Policies
- Clawback: NYSE/SEC-aligned policy to recoup incentive comp after accounting restatements; additional recoupment for policy violations, reputational harm, confidentiality breaches, competitive employment, and solicitation, applying during employment and up to one year post-separation .
- Share retention: 50% of net shares retained until guideline met or separation; Committee may withhold up to 50% of annual incentive if guidelines not met .
- Hedging/short sale/pledging: prohibited for Directors/Section 16 officers; margin accounts prohibited .
Perquisites and Other
| Category | 2024 Details |
|---|---|
| Aircraft usage (personal) | KO strongly prefers company aircraft for CEO/President & CFO travel; personal use imputed income; no tax gross-ups; table shows no separate aircraft usage amount for Murphy; tax reimbursement related to business spousal travel $20,867 |
| Financial/Tax planning | Provided; taxable reimbursement (amounts disclosed in “All Other Compensation”) |
| Club membership | Provided to Murphy and Mann, primarily business use |
| Company contributions | 401(k) $12,075; Supplemental 401(k) $132,688; aggregate balance $417,930; no above-market earnings |
Performance & Track Record
- 2024 highlights: organic revenue growth 12%, comparable currency-neutral operating income growth 16%, comparable EPS growth 7%; free cash flow (ex-IRS deposit) $10.8B; $8.4B returned to shareowners; context includes fairlife milestone payment and IRS deposit impacts .
- EPS progression and dividend: EPS $2.46 in 2024 vs $2.07 in 2019; dividend increased 5.2% in Feb 2025 (63rd consecutive annual increase) .
- Pay outcomes linked to performance: 2024 BPF 190% (both financial measures at maximum); 2022–2024 PSU payout certified at 190% .
Compensation Governance, Peer Group, and Say-on-Pay
- Say-on-Pay support: ~89% of votes cast (2024 cycle) .
- Comparator group: Abbott, ADM, Colgate-Palmolive, Danone, Intel, J&J, Kimberly-Clark, Kraft Heinz, McDonald’s, Mondelēz, Nestlé, Nike, PepsiCo, Pfizer, Philip Morris International, P&G, Starbucks, Unilever; used as input, no fixed percentile targeting .
- Equity plan governance: 2024 burn rate 0.13%, dilution 0.14%, overhang 6.10%; 2024 Equity Plan approved (95.74% votes) .
Equity Ownership & Alignment (Expanded Detail)
| Item | Notes |
|---|---|
| Ownership guideline status | All NEOs compliant; options excluded; PSUs count after certification; Committee can withhold incentive and requires retention of net shares until compliance |
| Prohibited activities | Hedging, short sales, pledging, margin accounts prohibited for Directors/Section 16 officers |
Employment Terms (Quantification Scenarios)
| Event (as of 12/31/2024) | Severance ($) | Annual Incentive ($) | Options ($) | PSUs/RSUs ($) | Total ($) |
|---|---|---|---|---|---|
| Voluntary Separation | 0 | 0 | 1,130,176 | 0 | 1,130,176 |
| Involuntary Termination | 2,217,280 | 0 | 1,130,176 | 86,436 (value disclosed) | 3,433,892 |
| Death | 0 | 0 | 1,669,137 | 9,764,921 | 11,434,058 |
| Disability | 0 | 0 | 1,669,137 | 0 | 1,669,137 |
| Change in Control (double trigger) | 0 | 1,662,960 | 1,669,137 | 11,243,969 | 14,576,066 |
Notes: CIC values reflect assumptions per proxy methodology, with PSUs valued at stated levels and prorations; CIC severance under TCCC Severance Plan not assumed in CIC totals .
Investment Implications
- Strong pay-for-performance alignment: 2024 BPF maxed on both financial measures; multi-year PSUs paid at 190%, signaling execution against revenue/EPS/FCF goals .
- Insider supply and retention: 2024 exercises ($1.2M) and PSU releases ($8.8M) indicate periodic supply, but retention policy, ownership compliance, and hedging/pledging prohibitions mitigate misalignment risk .
- Governance strength: Robust clawback and double-trigger CIC equity provisions, no individual CIC agreements or gross-ups, and high say-on-pay support (89%) reduce compensation-related risk .
- Equity usage prudence: Low burn rate (0.13%) and dilution (0.14%) with intent to offset option exercises via repurchases minimizes shareholder dilution .