Company: CL
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000021665-25-000008
Chunk: 34

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 16
Chunk 34
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 incentive compensation program, the Company grants officers and other key employees a target number of unearned performance-based restricted stock units at the beginning of each three-year performance cycle. Awards are earned and vest following the conclusion of the performance period on the basis of achievement of performance goals established at the commencement of each three-year performance period.A summary of performance-based restricted stock unit activity for the year ended December 31, 2024 is presented below:  Shares(in thousands)Weighted Average Grant Date Fair Value Per AwardPerformance-based restricted stock units as of January 1, 20241,069 $68 Activity:Granted321 91 Vested(283)70 Forfeited(89)72 Change due to performance and/or market condition achievement19 57 Performance-based restricted stock units as of December 31, 20241,037 $74       As of December 31, 2024, there was $32 of total unrecognized compensation expense related to unvested performance-based restricted stock unit awards, which will be recognized ratably over the remaining performance period.The Company uses a Monte-Carlo simulation model to estimate the fair value of performance-based restricted stock units at the date of grant.

93

COLGATE-PALMOLIVE COMPANY Notes to Consolidated Financial Statements (continued)(Dollars in Millions Except Share and Per Share Amounts)

Time-Vested Restricted Stock UnitsThe Company also grants time-vested restricted stock unit awards. Awards either vest at the end of the restriction period, which is generally three years from the date of grant, or ratably over the restriction period. As of December 31, 2024, approximately 7,324,623 shares of common stock were available for future restricted stock unit awards.A summary of restricted stock unit activity during 2024 is presented below:  Shares(in thousands)Weighted Average Grant Date Fair Value Per AwardRestricted stock units as of January 1, 20242,174 $76 Activity:Granted854 105 Vested(951)76 Forfeited(90)77 Restricted stock units as of December 31, 20241,987 $88 As of December 31, 2024, there was $68 of total unrecognized compensation expense related to unvested time-vested restricted stock unit awards, which will be recognized over a weighted-average period of 1.6 years. The total fair value of time-vested restricted stock units vested during the