PepsiCo Board Increases Stock-Linked Compensation Instead of Cash

PepsiCo, Inc. (PEP) disclosed that, under its director compensation deferral program, board members Susan M. Diamond, Daniel Bazella and Jennifer Bailey automatically converted their regular cash fees and dividend equivalents into phantom stock units linked to the company’s common shares.

On May 31 and June 1, they acquired a small number of additional units through dividend reinvestment and fee deferral, which will convert into company shares at a one-for-one ratio on a predetermined future date.

The company emphasized that these were not open-market transactions but private, compensation-related arrangements that accumulate routine director fees and dividends into share-based awards.

In its first-quarter 2026 results announced in April, PepsiCo reported net sales of approximately $19.4 billion (about KRW 26 trillion), an 8% year-over-year increase. It also raised its quarterly dividend by roughly 4% to $1.48 per share, marking 54 consecutive years of dividend increases.

Headquartered in Purchase, New York, PepsiCo is a global food and beverage leader whose major brands—Pepsi-Cola, Gatorade, Lay’s and Doritos among them—are sold in over 200 countries. Its strong cash generation and long track record of dividend growth make it one of the U.S. market’s premier dividend stocks.