[Form 4] COLGATE PALMOLIVE CO Insider Trading Activity
Colgate-Palmolive's Chairman, President & CEO received equity awards on 09/11/2025 consisting of 28,314 restricted stock units and a stock option for 196,047 shares with an exercise price of $84.06. The restricted stock units vest in three equal annual installments starting one year after grant, and the option vests in equal annual installments over three years beginning one year after the grant, with an expiration in 2033. Following the transaction the reporting person directly beneficially owns 347,464 shares, and holds additional indirect holdings of 53,560 shares via the issuer's 401(k) trustee, 52,000 shares via a spouse trust, and 335 shares via another trust. The awards were reported on a Form 4 reflecting standard compensation plan grants to an executive director.
- Alignment with shareholders: RSUs and options vesting over three years tie executive pay to long-term performance
- Significant existing ownership: Direct beneficial ownership of 347,464 shares plus indirect holdings indicates executive has material stake
- Potential dilution: Option for 196,047 shares could dilute shareholders if exercised
- Concentration risk: Substantial holdings mainly held by a single executive may concentrate voting power
Insights
TL;DR: Executive received routine equity compensation; modest dilution risk, aligns incentives long-term.
The grant package is a standard mix of restricted stock units and stock options designed to retain and incentivize the CEO. The RSUs convert to shares over three years and the option vests similarly, which promotes multi-year alignment with shareholder outcomes. The option exercise price of $84.06 establishes the threshold for future intrinsic value; until exercised these are contingent on stock performance. The direct beneficial ownership of 347,464 shares plus indirect holdings signals meaningful existing alignment. Impact on outstanding share count appears limited relative to total market cap and represents routine compensation rather than extraordinary dilution.
TL;DR: Vesting schedules and mix of RSUs/options follow best practices for retention and performance linkage.
The awards vest in equal annual installments over three years, a common structure to encourage retention and long-term performance. Combination of RSUs and options balances guaranteed value (RSUs) with performance upside (options). Reporting shows direct and indirect holdings through a 401(k) trustee and spouse trust, reflecting customary ownership arrangements. This disclosure is consistent with Section 16 reporting requirements and provides transparency on executive compensation timing and resulting ownership stakes.