Manuel Arroyo
COCA COLAAbout Manuel Arroyo
Manuel “Manolo” Arroyo (age 57) is Executive Vice President and Global Chief Marketing Officer of The Coca‑Cola Company. He was named CMO in 2020 and promoted to EVP in January 2024; he previously served as President of Asia Pacific (2019–2020) and President of the Mexico business unit (2017–2018) . He holds double degrees in Business Administration and Law from Universidad Pontificia Comillas (ICAI‑ICADE) and has led major refranchising and market entries across Asia, including Myanmar and Laos . In 2024, Coca‑Cola delivered 12% organic revenue growth and 16% comparable currency-neutral operating income growth; comparable EPS grew 7%, and the company raised its dividend by 5.2% in February 2025 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| The Coca‑Cola Company | EVP (since Jan 2024); Global CMO (since Jan 2020) | 2020–present | Leads Global Category teams and IMX (media, digital, design, assets, insights, performance); elevated to EVP in 2024 . |
| The Coca‑Cola Company | President, Asia Pacific Group | 2019–2020 | Oversaw 5 business units and the Bottling Investments Group in Asia . |
| The Coca‑Cola Company | President, Mexico Business Unit | 2017–2018 | Led growth and system alignment in Mexico . |
| The Coca‑Cola Company | President, ASEAN; President, SEWA (SE & West Asia); GM Iberia | 2010–2014; 2006–2009; 2004–2006 | Drove structural refranchising across SE Asia; led first entries in Myanmar/Laos; turnaround in Thailand/Vietnam . |
| Deoleo, S.A. | Chief Executive Officer | 2015–2016 | Ran the world’s largest branded olive oil company (incl. Bertolli) . |
| S.C. Johnson & Son, Inc. | SVP & President, Asia Pacific | 2014–2015 | Led APAC and opened first Asian HQ . |
| Banco Santander (Spain) | Corporate office staff | Early career | Finance/corporate roles pre‑Coca‑Cola . |
External Roles
| Organization | Role | Notes |
|---|---|---|
| Coca‑Cola Europacific Partners | Board member | Current board service noted on company leadership bio . |
| Coca‑Cola Andina (Chile); ThainamThip (Thailand); Coca‑Cola COFCO (China) | Director (prior service) | Prior board roles in key bottling partners . |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary ($) | 696,280 | 724,130 | As of 12/31 each year . |
| Target Bonus (% of salary) | 125% | 125% | Annual Incentive Plan target . |
Performance Compensation
Annual Incentive (2024)
| Metric | Target | Actual | Payout % | Weight | Weighted result |
|---|---|---|---|---|---|
| Net Operating Revenue Growth (organic) | 7.5% | 12.0% | 200% | 45% | 90% . |
| Operating Income Growth (cc‑neutral, adjusted) | 10.0% | 18.0% | 200% | 45% | 90% . |
| Inclusion Components (non‑financial) | Progress vs aspiration | All achieved | 100% | 10% | 10% . |
| Company Business Performance Factor | 190% . |
- Individual Performance Amount: None for Arroyo in 2024 (only Mr. Braun and Ms. Mann received 10%) .
Long‑Term Incentives (granted Feb 28, 2024)
| Element | Grant value ($) | Quantity | Key terms |
|---|---|---|---|
| PSUs (2024–2026) | 2,227,878 | 38,983 | Metrics: 30% organic revenue CAGR, 30% EPS CAGR, 30% cumulative FCF, 10% environmental (rPET, water); relative TSR modifier (+/‑25%) . |
| Stock Options | 1,002,166 | 97,487 | 10‑year term; vest 25% each year (2025–2028); exercise price $60.28 (avg high/low on grant date) . |
PSU Program Outcomes
- 2022–2024 PSUs: Financial measures above maximum; sustainability mixed; relative TSR modifier not triggered; final payout certified at 190% (Feb 2025) .
- 2023–2025, 2024–2026 PSUs: Projected above target; certification in Feb 2026/Feb 2027 (subject to performance and TSR modifier) .
Equity Ownership & Alignment
| Ownership/awards | Amount | Notes |
|---|---|---|
| Beneficial ownership (KO common) | 848,310 | Includes 650,554 options exercisable by May 2, 2025 . |
| Options – 2024 grant | 97,487 | Vest 25% annually 2025–2028; exercise price $60.28 . |
| Unearned PSUs outstanding (max scenario) | 143,160 | 65,194 (2023–2025) + 77,966 (2024–2026) at maximum award level . |
| 2024 option exercises | 7,038 | Value realized $195,832 (Aug 7, 2024) . |
| Stock ownership guidelines | All NEOs in compliance; options don’t count; PSUs count after performance met . | |
| Hedging/pledging | Prohibited for Section 16 officers (no hedging, short sales, or pledging/margin) . |
Employment Terms
| Topic | Key terms |
|---|---|
| Severance plan | Max cash severance = 2x base salary (lump sum) for qualifying involuntary termination . |
| Annual incentive – CIC | Target amount payable after year‑end; prorated if departure during year . |
| Equity – CIC | Double‑trigger: options/RSUs vest if terminated without cause within 1 year; PSUs vest if terminated without cause within 2 years (target if CIC in first half; actual if in second half), prorated for service . |
| Equity – death/disability | Options vest and extended exercise windows; PSUs pay target (death) or actual post‑period (disability) as specified . |
| Clawback | NYSE/SEC‑aligned clawback for restatements; broader recoupment for policy violations/reputational harm/solicitation, etc. . |
| Tax gross‑ups | No CIC tax gross‑ups; no tax gross‑ups for personal aircraft use (limited reimbursements for business‑related spousal travel tax per policy) . |
Compensation Structure Analysis
- Mix and leverage: In 2024, Arroyo’s pay remained heavily performance‑based: base $724k, target bonus 125%, and LTI of ~$3.23m split (2/3 PSUs, 1/3 options by election) .
- Plan rigor: 2024 AIP targets were set above the long‑term plan midpoint given inflation; results produced maximum financial payouts and a 190% Business Performance Factor .
- 2025 design shifts: Annual AIP equally weights net revenue growth and operating income growth; 2025–2027 PSUs equally weight revenue, EPS, and FCF with TSR modifier—tightening pay‑for‑performance linkage .
- One‑time items: “All Other Compensation” rose in 2024 largely due to international service program tax equalization related to relocation (e.g., $6.66m component for exit tax credit timing), not recurring pay inflation .
- Prior discretion: A pandemic‑related discretionary bonus of $236,250 was paid to Arroyo in early 2021 (30% of 2020 target bonus), consistent with broad one‑time awards for leadership through COVID and reorganization .
Performance & Track Record
- Marketing strategy execution: Arroyo emphasized a shift to experience‑led, data‑driven marketing around passion points (sports, music, gaming), focused on growing the weekly consumer base and marketing ROI; Coca‑Cola reported a 7% uplift in marketing effectiveness in the referenced period .
- Company results under his CMO tenure include 2024 organic revenue +12% and comparable currency‑neutral operating income +16%, with comparable EPS +7% and a 5.2% dividend increase announced Feb 2025 .
- Pay‑versus‑performance context: Since 2019, KO TSR value index stood at 131 in 2024; net income was $10.65bn, and organic revenue growth 12%, aligning incentive outcomes with shareholder returns and profitability .
Governance, Alignment, and Risk Indicators
- Alignment: Robust stock ownership and retention policies, prohibition on hedging/pledging, and broad clawback provisions fortify alignment with shareholders .
- CIC/Severance discipline: No individual CIC agreements or tax gross‑ups; equity uses double‑trigger vesting; severance capped at 2x base pay .
- Related parties: No related‑person transactions requiring disclosure since Jan 1, 2024 .
- Shareholder voice: Say‑on‑pay support ~89% (prior year), with strong approvals for the 2024 Equity Plan and ESPP (96% and 99%)—indicating durable investor backing for program design .
- Insider selling pressure: Minimal 2024 selling activity by Arroyo (exercise of 7,038 options; $195,832 value realized), with significant unvested PSUs and option tranches creating retention hooks across 2025–2028 .
Compensation Peer Group (for benchmarking program design)
Abbott; ADM; Colgate‑Palmolive; Danone; Intel; Johnson & Johnson; Kimberly‑Clark; Kraft Heinz; McDonald’s; Mondelēz; Nestlé; NIKE; PepsiCo; Pfizer; Philip Morris; Procter & Gamble; Starbucks; Unilever .
Equity Vesting & Upcoming Windows (Selling Pressure Watchlist)
- Options: 2024 grant vests 25% annually on Feb 28, 2025; Feb 27, 2026; Feb 26, 2027; Feb 29, 2028 (potential liquidity windows) .
- PSUs: 2023–2025 and 2024–2026 cycles certify in Feb 2026 and Feb 2027, respectively; 2022–2024 certified at 190% in Feb 2025 (settled), historically elevating near‑term supply around vest dates .
Education & Credentials
- Business Administration and Law (double major), Universidad Pontificia Comillas (ICAI‑ICADE), Madrid .
- Extensive global operating experience across Europe, Asia, and the Americas; board service with Coca‑Cola bottlers (CCEP, Andina, COFCO; ThainamThip) .
Investment Implications
- Pay‑for‑performance remains tight: AIP and PSUs are anchored to revenue growth, operating profitability, EPS, and FCF—with a TSR modifier—driving strong alignment as KO posts double‑digit organic growth and accretive EPS/dividend progression .
- Retention risk appears contained: Large unvested PSU overhang (multi‑year) and option ladders through 2028 provide significant retention hooks; hedging/pledging bans and ownership/retention policies add stickiness .
- Trading signals: Expect episodic supply around annual option vests (Feb) and PSU certification months (Feb 2026/2027). 2022–2024 PSUs paid at 190% (Feb 2025) without TSR uplift, indicating internal performance strength despite a balanced TSR outcome .
- One‑time compensation noise: 2024 “All Other Compensation” spike (tax equalization) is relocation/tax timing driven rather than structural comp inflation, reducing concern about recurring cash leakage .
Sources: KO 2025 Proxy Statement and 2024 10‑K; KO leadership page. All figures and statements are cited to the relevant filings and company materials.