Keurig Dr Pepper Inc. appointed Mr. Cofer as new CEO

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


On September 20, 2023, Keurig Dr Pepper Inc. (the "Company" or "KDP") announced the appointment of Timothy Cofer to the position of Chief Operating Officer, effective November 6, 2023. The Company expects that in the second quarter of 2024, Mr. Cofer will succeed Robert Gamgort as Chief Executive Officer of the Company, with Mr. Gamgort transitioning to the role of Executive Chairman at that time. 


Mr. Cofer, 54, has served as the Chief Executive Officer of Central Garden & Pet, a public company in the pet and garden industries. Previously, he served as the Executive Vice President and Chief Growth Officer of Mondelēz International from 2016 to 2019, where he led the company's consumer- and customer-facing global functions. Prior to that, he served in roles of increasing responsibility at Mondelēz International, Kraft Foods Group and Oscar Mayer Foods, with experience across a wide range of product categories, including coffee, chocolate and packaged food. Mr. Cofer holds a BA from St. Olaf College and an MBA from the University of Minnesota.


In connection with his appointment, the Company entered into a letter agreement with Mr. Cofer on September 18, 2023 (the "Letter Agreement"). Pursuant to the Letter Agreement, as Chief Operating Officer, Mr. Cofer will receive an annual base salary of $1,150,000 and will be eligible to receive an annual bonus at a target level of 125% of his base salary. He will be eligible to participate in the Company's long-term equity incentive program with an annual award target value of $3,500,000. Mr. Cofer will also be required to participate in the Company's Elite Investment Program, pursuant to which he will be required to invest $12,500,000 in shares of the Company; for each share he purchases, the Company will grant Mr. Cofer one matching RSU, which will vest on the fifth anniversary of the date of grant. 


Mr. Cofer will also be granted the following, in recognition of forgone incentive compensation from his prior employer: (i) a one-time sign-on grant of RSUs with a grant date value of $7,000,000, which will vest 30% on the 18-month anniversary of the date of grant, 40% on the 30-month anniversary of the date of grant and 30% on the 42-month anniversary of the date of grant and (ii) a one-time cash sign-on bonus of $8,000,000, which, in the event of his voluntary resignation or termination for cause within one year of his start date, will be repayable to the Company 100%, or between the first and second year after his start date, will be repayable to the Company 50%.


The Letter Agreement provides that upon Mr. Cofer's anticipated promotion to Chief Executive Officer, his annual base salary as Chief Executive Officer would be $1,250,000, with an annual bonus at a target level of 150% of his base salary. His annual award target value as Chief Executive Officer under the Company's long-term equity incentive program is expected to be $4,000,000.


Mr. Cofer has no family relationship with any directors or executive officers of the Company, nor are there any arrangements or understandings between Mr. Cofer and any other persons pursuant to which he was selected as an officer of the Company. There are no related party transactions between Mr. Cofer and the Company reportable under Item 5.02 of Form 8-K and Item 404(a) of Regulation S-K.


A copy of the Company's press release announcing the appointment of Mr. Cofer is furnished as Exhibit 99.1 to this Form 8-K.