Company: CL
Filing Date: 2025-03-26
Form Type: DEF 14A
Source: 0001308179-25-000223
Chunk: 32

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-03-26
Form: DEF 14A
Chunk 32
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 Cash Flow Productivity was impacted in 2023 by charges related      
 to an ERISA litigation matter and in 2022 by goodwill and intangible assets impairment charges. These non-cash charges had             
 the effect of reducing the Company’s 2023 and 2022 GAAP net income (the denominator used to calculate Free Cash Flow                   
 Productivity) but did not impact free cash flow before dividends (the numerator), thus resulting in higher Free Cash Flow Productivity 
 than the Company would otherwise have achieved in 2023 and 2022. Therefore, the P&O Committee adjusted net income for these            
 charges in order to eliminate the impact of these charges on the Free Cash Flow Productivity measure, resulting in Free Cash           
 Flow Productivity for 2023 and 2022 of 114.0% and 71.9%, respectively, and for the 2022-2024 performance period of 100.7%.             |

| 42 |

Executive Compensation PBRSU Terms To the extent earned, the PBRSUs granted under the Growth Performance Plan vest upon certification of the performance results in February of the year following completion of the performance period (in 2027 for the 2024-2026 performance cycle) and are distributed as shares of Common Stock as soon as administratively practicable thereafter. Awards are forfeited if the recipient terminates their employment, other than through retirement, death or disability, prior to the end of the performance period. If a recipient retires, dies or becomes disabled during the performance period (provided they remained employed for at least the first six months of the performance period), they are eligible to earn PBRSUs on a pro rata basis at the conclusion of the performance period reflecting the proportion of the performance period for which they were employed. For more information regarding the effect of various types of termination on the vesting of PBRSUs, see page 54. Recipients of PBRSUs do not have voting rights or the right to receive dividends until they are distributed as shares of Common Stock. Compensation Governance Features Equity Grant Policies and Practices We grant annual equity awards at the same predetermined times each year, at regularly scheduled P&O Committee meetings in the first and third quarters. Equity awards for new hires or newly promoted employees or special awards for recognition or retention purposes are generally made on a monthly basis.All awards are granted under a stockholder-approved plan, the grant date of any award is no earlier than the date on which such award is approved and the grant price of any award is never